[Federal Register Volume 64, Number 96 (Wednesday, May 19, 1999)]
[Notices]
[Pages 27358-27388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12502]
[[Page 27357]]
_______________________________________________________________________
Part II
Department of Housing and Urban Development
_______________________________________________________________________
Request for Proposals; Contract Administrators for Project-Based
Section 8 Housing Assistance Payments (HAP) Contracts; Notice
Federal Register / Vol. 64, No. 96 / Wednesday, May 19, 1999 /
Notices
[[Page 27358]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4511-N-01]
Request for Proposals; Contract Administrators for Project-Based
Section 8 Housing Assistance Payments (HAP) Contracts
AGENCY: Office of the Assistant Secretary for Housing, HUD.
ACTION: Notice of Request for Proposals.
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SUMMARY: The Request for Proposals (RFP) provided in this notice was
issued by HUD on May 3, 1999, and is also published in the Federal
Register to ensure a wider dissemination. Through this RFP, HUD is
seeking sources interested in providing contract administration
services for project-based Housing Assistance Payment Contracts under
Section 8. This solicitation is not a formal procurement within the
meaning of the Federal Acquisition Regulations (FAR) but will follow
many of those principles. The Request for Proposals follows this
Summary.
Dated: May 11, 1999.
William C. Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
Request for Proposals; Contract Administrators for Project-Based
Section 8 Housing Assistance Payments (HAP) Contracts
Contents
1. Introduction
2. Overview of Contract Administrator's Responsibilities
2.1 Eligibility for Participation
2.2 Definition of a Public Housing Agency
2.3 Instrumentality Entity Eligibility
3. Statement of Work
3.1 Overview
3.1.1 Performance based contracting
3.1.2 Elements of Core Tasks Descriptions
3.1.3 HUD Regulations and Requirements
3.1.4 Core Tasks
3.2 Management and Occupancy Reviews
3.3 Rental Adjustments
3.4 Opt-Out and Contract Termination
3.5 Monthly Vouchers
3.6 Health and Safety Issues and Community/Resident Concerns
3.7 Section 8 Budgets, Requisitions, Revisions and Year-end
Statements
3.8 Contract Administrator's Audit
3.9 Deficient Annual Financial Statements (AFS)
3.10 Renewals of Expiring Section 8 Contracts
3.11 General Reporting Requirements
3.12 Physical Inspection
4. Contract Administrator Fee
4.1 Terms
4.2 Evaluation of CA Performance
4.3 Basic Fee
4.4 Incentive Fee
4.5 Fee Payment
4.5.1 Payment of basic fee
4.5.2 Payment of incentive fee
4.6 Availability of Funds
4.7 Use of Fee Income
4.8 Performance Requirements Summary
5. Guidance for Submitting Proposals
5.1 Service Area Designation
5.2 Proposal Organization
5.3 Proposal Due Date
5.4 Offeror Questions/Pre-Proposal Conference
5.5 Amendments and Additional Guidance
5.6 Contract Term
6. Equal Employment Opportunity Compliance
7. Factors for Award
7.1 Understanding and Technical Approach--50 Points
7.1.1 Data systems
7.2 Management Capacity and Quality Control Plan--50 Points
7.3 Past Performance--30 Points
8. Proposal Evaluation
Attachments
Attachment I Voucher and Recertification Review
Attachment II Proposal Submission Form
Attachment III Annual Contributions Contract
1. Introduction
This is the Department of Housing and Urban Development's (HUD)
Request For Proposals (RFP) to provide contract administration services
for project-based Housing Assistance Payments (HAP) Contracts under
Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f)
(Section 8). Of the approximately 24,200 project-based Section 8 HAP
Contracts in effect, Public Housing Agencies (PHAs) currently
administer approximately 4,200. These PHAs will generally continue to
administer these HAP Contracts until expiration. HUD administers the
balance of approximately 20,000. This RFP covers contract
administration for most of these HUD administered contracts.
When HUD renews the expired project-based HAP Contracts that PHAs
currently administer, HUD generally expects to transfer contract
administration of the renewed HAP Contracts to the Contract
Administrator (CA) it selects through this RFP for the service area
where the property is located. This RFP does not apply to contract
administration of Section 8 projects assisted under the Section 8
moderate rehabilitation program (including the Section 8 moderate
rehabilitation single room occupancy program) or the Section 8 project-
based certificate program, or to contract administration of Section 9
projects to be assisted under the Section 8 project-based voucher
program.
The successful offerors under this RFP will oversee HAP Contracts,
in accordance with HUD regulations and requirements. The CAs
responsibilities will be governed by an Annual Contributions Contract
(ACC) entered into with HUD (Attachment III). After execution of the
ACC, the CA will subsequently assume or enter into HAP Contracts with
the owners of the Section 8 properties. The Contract Administrator will
monitor and enforce the compliance of each property owner with the
terms of the HAP Contract and HUD regulations and requirements.
Proposals in response to this RFP may cover an area no smaller than
an individual State (or U.S. Territory). Proposals may cover one or
more HUD Multifamily Hubs or one or more States (or U.S. Territory).
Geographic Service Area Jurisdiction (Attachment II) describes the
jurisdictions of the Multifamily Hubs. HUD encourages proposals through
joint ventures and other public/private partnerships between public
housing agencies and other private or non-profit entities.
Under the approximately 20,000 Section 8 HAP Contracts this RFP
covers, HUD pays billions of dollars annually to owners on behalf of
eligible property residents. HUD seeks to improve its performance of
the management and operations of this function through this RFP.
Specifically, HUD seeks through this solicitation to achieve three
programmatic and three administrative objectives.
Programmatic Objectives
Calculate and pay Section 8 rental subsidies correctly.
Administer project-based Section 8 HAP Contracts
consistently.
Enforce owner obligations to provide decent housing for
eligible families.
Administrative Objectives
Execute ACCs only with entities that have the
qualifications and expertise necessary to oversee and manage affordable
housing and that have the capacity to perform the required services
with requisite personnel and other resources.
Get the best value for dollars spent for CA services.
Encourage the development of joint ventures and/or
partnerships for contract administration services to obtain the benefit
of the best practices of both public and private sectors.
[[Page 27359]]
2. Overview of Contract Administrator's Responsibilities
Contract Administrators must administer Section 8 HAP Contracts in
accordance with the ACC, Federal law, and HUD regulations and
requirements, both current and as amended in the future. The ACC with
the CA will specify the area where the CA is required to provide
contract administration services (service area). The ACC will specify
the Section 8 assisted units under HAP Contracts that HUD assigns to
the Contract Administrator for servicing (covered units). From time to
time during the term of the ACC, HUD may add or delete covered units
for contract administration under the ACC. Some units may be assigned
to Participating Administrative Entities (PAE) by the Office of
Multifamily Housing Assistance Restructuring (OMHAR) for contract
administration. On an annual basis, the CA will request funds from the
HUD Financial Management Center (FMC) to cover the Section 8 funds to
be disbursed to owners for eligible units under the HAP Contract.
Under this RFP, the offerors will competitively bid to perform
contract administration services for properties with project-based
Section 8 HAP Contracts. A list of the projects which may be assigned
under this RFP is located at www.hud.gov/fha/mfh/rfp/sec8rfp.html.
The Statement of Work details core functions (tasks) that the
Contract Administrator must perform.
The major tasks of the Contract Administrator under the ACC and
this RFP include, but are not limited to:
Monitor project owners' compliance with their obligation
to provide decent, safe, and sanitary housing to assisted residents.
Pay property owners accurately and timely.
Submit required documents accurately and timely to HUD (or
a HUD designated agent).
Comply with HUD regulations and requirements, both current
and as amended in the future, governing administration of Section 8 HAP
contracts.
2.1 Eligibility for Participation
By law, HUD may only enter into an ACC with a legal entity that
qualifies as a ``public housing agency'' (PHA) as defined in the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.). However, that does
not preclude joint ventures or other partnerships between a PHA and
other public or private entities to carry out the PHA's contract
administration responsibilities under the ACC between the PHA and HUD.
Under the law, a public housing agency is defined as a:
``* * * State, county, municipality, or other governmental
entity or public body (or agency or instrumentality thereof) which
is authorized to engage in or assist in the development or operation
of low-income housing.'' (42 U.S.C. 1437a(b)(6)).
2.2 Definition of a Public Housing Agency
To qualify as a PHA that may enter into a Section 8 ACC with HUD,
the legal entity must be one of the following:
A general or special purpose governmental entity: Such governmental
entities include a State, municipality, housing authority, or
governmental public benefit corporation.
A multi-state, interstate or regional governmental entity.
An instrumentality entity: Such instrumentality entity must act as
an instrumentality of a parent governmental entity, or multiple parent
governmental entities. The instrumentality entity may be a for-profit
or not-for-profit entity.
HUD may require the submission of legal opinions and organizational
documents needed to determine whether an entity qualifies as a PHA.
In addition, the PHA and any related entity must obtain clearance
under HUD Previous Participation procedures (see Form HUD-2530) prior
to execution of the ACC.
2.3 Instrumentality Entity Eligibility
An instrumentality entity may be an entity that already exists when
the offeror submits a proposal to HUD under this RFP, or a legal entity
specially formed subsequent to proposal submission, and prior to
execution of the ACC between the entity and HUD, to carry out contract
administration under the ACC.
To qualify as an ``instrumentality entity'', the relationship
between an instrumentality entity and a governmental entity (``parent
entity'') must include all of the following characteristics:
The parent entity must have the right to approve the
corporate charter or other organic documents of the instrumentality
entity, including the right to approve any amendments.
The parent entity must have the right to control, direct
and authorize the execution of the ACC between HUD and the
instrumentality entity.
The parent entity must have the right to directly or
indirectly control operation of the instrumentality entity.
The parent entity must have the right that upon
dissolution or termination of the instrumentality entity, title to all
real or personal property held by the instrumentality entity must be
transferred to the parent entity or an entity designated by the parent
entity.
Before execution of the ACC with an instrumentality entity, HUD
will, upon submission of appropriate documentation as required by HUD,
determine whether the private instrumentality entity has been properly
established, possesses the required power and jurisdiction to carry out
contract administration in the service area, and qualifies as an
instrumentality entity as described above.
The charter or other organic documents of the instrumentality
entity (e.g., certificate of incorporation, partnership agreement or
certificate) must provide that the instrumentality entity is authorized
to ``engage in or assist in the development or operation of low-income
housing.''
Governmental parent entities may partner with private for-profit or
non-profit entities that hold an interest, directly or indirectly, in
an instrumentality entity so long as such instrumentality entity is
otherwise in compliance with the above stated requirements for
eligibility of an instrumentality entity. Private entities may contract
directly with an instrumentality entity.
As stated in the evaluation criteria, a proposal for contract
administration by an instrumentality entity under ACC between HUD and
such entity shall specify any services or functions to be provided or
performed by the parent entity, or by any other entity which holds a
direct or indirect interest in such instrumentality, to carry out or
support Section 8 contract administration in accordance with the ACC
and this RFP. If the proposal is accepted, such parent or other entity
shall enter into a contract with the instrumentality entity, prior to
execution of the ACC, that specifies all such services or functions,
and the contract shall obligate the parent entity to provide such
services or functions. Such contract shall specify that HUD is a third-
party beneficiary of such contract and shall be executed by the parent
and instrumentality entities and be in the form and substance approved
by HUD.
[[Page 27360]]
3. Statement of Work
3.1 Overview
3.1.1 Performance Based Contracting
For work performed under ACCs awarded in response to this RFP, HUD
will use Performance-Based Service Contracting (PBSC). PBSC is based on
the development of a performance work statement, which defines the work
in measurable, mission-related terms with established performance
standards and review methods to ensure quality assurance. PBSC assigns
incentives to reward performance that exceeds the minimally acceptable
and assesses penalties for unsatisfactory performance.
The CA must complete all tasks described in this section of the
RFP, including both ``Requirements'' and ``Incentive Based Performance
Standards.'' Failure to complete the tasks will result in default of
the terms and conditions of the ACC. HUD may terminate the ACC at any
time in whole or in part if HUD determines that the CA has committed
any default under the ACC.
The specified tasks outlined will provide the offeror with the
necessary information to complete the Submission of Proposal Form
(Attachment II).
3.1.2 Elements of Core Tasks Descriptions
The description of each core task contains the following elements:
Outcome: The required result of the task.
Requirements: A general description of specific tasks the CA must
perform.
Note: CAs must perform each task in accordance with all relevant
HUD regulations and requirements in effect during the term of the
ACC. The RFP does not set forth the details of such regulations and
requirements.
Reference: Current HUD regulations and other HUD requirements
related to each task.
Incentive Based Performance Standards: A description of specific
elements of each core task. HUD will measure the CA's performance of
each such element as the performance standard to determine the CA's
earned Administrative and Incentive Fees.
Quality Assurance: A listing of the methods and resources HUD will
use to verify the accuracy of CA's reported performance and
accomplishments. HUD may use other methods that it deems appropriate to
assure quality.
3.1.3 HUD Regulations and Requirements
All references mentioned in the tasks may be obtained through HUD's
website (http://www.hudclips.org/cgi/index.cgi.) from which interested
parties may obtain HUD handbooks and other directives or through the
HUD Multifamily Clearinghouse at 1-800-685-8470. It should be noted
that the regulations and directives listed are the current instructions
and requirements and may be updated from time to time.
HUD does not represent that the references listed in the RFP or on
the HUD website are a complete listing of current relevant HUD
regulations and requirements. In addition, HUD regulations and other
requirements may change from time to time during the term of the ACC.
HUD's codified regulations are issued as Title 24 of the Code of
Federal Regulations (CFR). Revisions or additions to HUD regulations
are initially published in the Federal Register. HUD may also publish
Federal Register notices. In addition to publication in the Federal
Register and the CFR, HUD issues additional program requirements as HUD
``directives'', including HUD notices, handbooks and forms.
The CA will be required to carry out the tasks described in this
Section, as well as other responsibilities related to contract
administration under the ACC, in accordance with all HUD regulations
and requirements in effect from time to time, as well as other
responsibilities related to contract administration under the ACC.
3.1.4 Core Tasks
The RFP describes eleven core tasks that the CA must perform:
1. Conduct management and occupancy reviews.
2. Adjust contract rents.
3. Process HAP contract terminations or expirations.
4. Pay monthly vouchers from Section 8 owners.
5. Respond to health and safety issues.
6. Submit Section 8 budgets, requisitions, revisions and year-end
statements.
7. Submit audits of the CA's financial condition.
8. Monitor owners progress in addressing Annual Financial Statement
deficiencies.
9. Renew HAP contracts.
10. Report on CA operating plans and progress.
11. Follow up on results of physical inspections of Section 8
projects.
3.2 Management and Occupancy Reviews
The CA must conduct an on-site management and occupancy review of
each Section 8 property, no less than annually. (Some properties may
have multiple HAP contracts.) The review must be a comprehensive
assessment of the owner's procedures for directing and overseeing
project operations, and the adequacy of the procedures for carrying out
day to day, front line activities. Some examples of the areas that the
CA must audit are: maintenance, security, leasing, occupancy,
certification and recertification of family income, and determination
of the family payments, financial management, Management Improvement
and Operating (MIO) Plans, and general maintenance practices. The
results of the on-site review must provide adequate documentation to
support any enforcement actions proposed against the owner by the CA or
HUD.
Outcome: Identify and resolve areas of noncompliance with HUD
regulations and other requirements.
Requirements
Schedule and conduct annual reviews of each property,
using form HUD-9834 or other appropriate documentation.
Evaluate the owner's operating policies and procedures
following guidance in the appropriate HUD directives.
Verify compliance with HUD regulations and requirements
regarding occupancy issues (e.g., resident eligibility and selection,
examination and reexamination of family income and assets, household
characteristics) and verify that correct documentation is contained in
each resident file to support claims for payment under the HAP
contract. Use the following resident file random sampling:
------------------------------------------------------------------------
Number of units Minimum file sample
------------------------------------------------------------------------
100 or fewer........................... 5 files plus 1 for each 10
units over 50.
101-600................................ 10 files plus 1 for each 50
units or part of 50 over 100.
601-2000............................... 20 files plus 1 for each 100
units or part of 100 over 600.
Over 2,000............................. 34 files plus 1 for each 200
units or part of 200 over
2,200.
------------------------------------------------------------------------
If the CA's review of the sample indicates a problem, the
CA must require the owner/agent to conduct a 100% review of the files
and report the results of the review to the CA. The CA will test the
review done by the owner/agent to determine its reliability and
accuracy.
Verify owner compliance with civil rights regulations,
including Title VI, Title VIII, the Americans with Disabilities Act,
and Section 504 of the Rehabilitation Act of 1973.
[[Page 27361]]
Notify the jurisdictional HUD office by close of next
business day of any potential fraud or potential violations of law
identified during the reviews.
Prepare and submit to the owner/agent and jurisdictional
HUD office a written report, on form HUD-9834, or other appropriate
HUD-required documents, within 30 days of review, outlining any
findings and recommendations for corrective action.
Monitor implementation of corrective action. Notify
jurisdictional HUD office within one business day when enforcement
action is required.
Enter required information into HUD data systems.
References
HUD Handbook 4350.1
HUD Handbook 4350.3
Incentive Based Performance Standards
1. The CA must conduct annual Management and Occupancy Reviews in
accordance with the CA submitted and HUD approved workplan according to
HUD requirements, document corrective actions taken against Section 8
owners or families, and monitor implementation of necessary corrective
action.
2. CA's review must document on the appropriate form Section 8
owner compliance with civil rights regulations, including Title VI,
Title VIII, the Americans with Disabilities Act, and Section 504 of the
Rehabilitation Act of 1973 and forward to the owner and the appropriate
jurisdictional HUD office within 30 days.
Quality Assurance
On-Site Reviews
Data Systems Reports
3.3 Rental Adjustments
Contract rent under each Section 8 HAP contract must be adjusted
during the HAP contract term in accordance with the HAP contract and
HUD requirements.
The CA must process rent adjustments correctly.
Outcome: Contract rent adjustments are timely and correct.
Requirements:
A. Budget Based Adjustments
Where applicable, the budget based rent adjustment method requires
owners to submit an operating budget and supporting documentation for
CA review.
The CA will determine budget based adjustments for contract rent by
performing the following tasks:
Analyze the property's operating budget and supporting
documentation for a rent adjustment to determine reasonableness
according to guidance in HUD Handbook 4350.1.
Document rent increases on a Rent Schedule (Form HUD-
92458)
Analyze adjustments of the owner utility allowance
schedule if applicable.
Analyze adjustment to the monthly Reserve for Replacement
deposit as required and recommend action to HUD.
Approve/disapprove rent adjustment and provide owners
written notification.
Verify accurate, timely completion and submission of
adjusted rent schedule by owners.
Enter data into the appropriate HUD data system within
five business days from completion of action.
B. Annual Adjustment Factor (AAF)/Operating Cost Adjustment Factor
(OCAF)
This rent adjustment method requires the CA to apply the AAF/OCAF
to current contract rents to determine which rents are eligible for an
adjustment. AAF's are published annually in the Federal Register and
OCAF's are published annually in a Housing Notice. Refer to the current
Notice on the HUD Homepage.
The CA will perform the following tasks:
Determine the amount annual adjustments in accordance with
HUD requirements.
Analyze adjustments of the owner utility allowance
schedule if applicable.
Analyze adjustment to the monthly Reserve for Replacement
Account, if applicable pursuant to the HAP contract and recommend
action to HUD.
Approve/disapprove the amount of rent adjustment and
provide owners written notification.
Validate comparability study if submitted by owners to
support rent adjustment request.
Verify accurate, timely completion and submission of
adjusted rent schedule by owners.
Enter data into the appropriate HUD system within five
business days from completion of action.
C. Special Adjustments
For those HAP Contracts with AAF adjusted rents, owners may request
special increases in costs for generally applicable increases items
such as insurance, taxes and utilities. The appropriate jurisdictional
HUD office must approve or deny all special adjustments within 30 days
of receipt of properly documented request from CA.
The CA will process the owner's request for a special rent
adjustments to determine if the special adjustment should be granted.
To accomplish this the CA will perform the following tasks:
Analyze owners' requests.
Recommend action to the appropriate jurisdictional HUD
office.
Based on notification from HUD, notify the owner of rent
adjustment approval or disapproval.
Verify accurate, timely completion and submission of
adjusted rent schedule by owners.
Enter data into the appropriate HUD data system within 5
business days from completion of action.
D. Rent Appeals
Owners may appeal rent adjustment decisions. The first level of
appeal is to the CA; the second level of appeal is to the appropriate
jurisdictional HUD office. CA will review appeals.
The CA will perform the following tasks:
First Level Appeal
Analyze owner's rent appeal requests.
Provide owner with written notification of decision and
justification within 30 days of receipt.
If appeal is approved:
Verify accurate, timely completion and submission of
adjusted rent schedule by owners.
Enter data into the appropriate HUD data system within 5
business days from completion of action.
If appeal is denied:
Notify owner of Second Appeal rights within 30 days of
receipt.
Second Level Appeal
If appeal is approved by HUD:
Receive approval from jurisdictional HUD office within 30
days after request for second level appeal.
Verify accurate, timely completion and submission of
adjusted rent schedule by owners.
Enter data into the appropriate HUD data system.
References
HUD Handbook 4350.1
Notice: H-98-34
Notice: H-98-3
Notice: H-98-27
Incentive Based Performance Standards
3. CA completes processing of owner's request for rent adjustments
and all CA approved rent adjustments are executed and finalized within
30 days of receipt of owner's request for a budget-based rent
adjustment or on the anniversary date of the HAP contract for an AAF-
based rent adjustment.
Quality Assurance
On-Site Reviews
[[Page 27362]]
Data Systems Reports
3.4 Opt-Out and Contract Termination
Section 8 Contracts may terminate because:
An owner may choose not to renew an expiring Section 8
contract (opt-out); and
The contract may be terminated by the CA ( with HUD
approval).
When Section 8 contracts will be terminated, the CA must work with
HUD to obtain tenant-based rental assistance for eligible residents by
notifying the appropriate HUD contact. The CA will coordinate efforts
with the jurisdictional HUD office to identify a PHA to administer the
tenant-based assistance.
Outcome: Provide ongoing rental assistance to eligible residents in
occupancy at the time of the opt-out
Requirements
A. Notification Requirements
Inform jurisdictional HUD office by close of next business
day of notice by owner, that the owner has elected to opt-out of the
program.
Inform jurisdictional HUD office of recommendation to
terminate contracts for cause/default under HAP Contract provisions by
the close of the next business day.
Verify owner has complied with HAP and current law on Opt-
outs.
B. CA Must Take the Following Actions When Contracts are Terminated
Obtain resident payment/unit size data from owners of
properties.
Provide resident/unit data to jurisdictional HUD office
within 3 business days of receipt from the owner for purpose of
obtaining Section 8 vouchers for residents.
Coordinate efforts with the jurisdictional HUD to identify
a local PHA to administer tenant-based assistance and reserve funds to
cover such vouchers.
Assist residents who must be relocated.
References
Notice: H-98-34
Incentive Based Performance Standards
4. CA notifies jurisdictional HUD office, by close of next business
day of notice by owner, that the owner has elected to opt-out.
5. CA provides complete resident data to jurisdictional HUD office
90 days prior to contract expiration.
Quality Assurance
On-Site Reviews
Data Systems Reports
3.5 Monthly Vouchers
In Section 108 of 24 CFR, Part 208-Electronic Transmission of
Required Data for Certification and Recertification and Subsidy Billing
Procedures for Multifamily Subsidized Projects (a/k/a the Automation
Rule) requires property owners to request HAP payments monthly through
the Tenant Rental Assistance Certification System (TRACS). Vouchers are
due the 10th day of the month preceding the month for which the owner
is requesting payment. CAs may not pay owners until vouchers are
received and reviewed for accuracy. The Voucher and Recertification
Review (Attachment 1) lists the tasks and tools associated with review
of vouchers and certifications/ recertifications.
Outcome: Payments of Section 8 vouchers and claims are only
authorized on eligible units. Payments are made to owners by the first
day of every month.
Requirements:
A. Verify accuracy of monthly Section 8 vouchers (forms HUD-52670 &
HUD-52670-A)
The CA must verify and provide written documentation of the
accuracy of payment requests by the last day of each month before the
CA issues payments for the verified request. To accomplish this task,
the CA must:
Monitor owners follow-up efforts on discrepancies
identified as a result of any income matching initiatives. HUD will
provide discrepancy reports to the CAs.
Monitor owner's compliance with entry of all resident
certification and recertification data in TRACS.
Verify voucher submissions by owner through TRACS system
by the 10th day of the month preceding the month for which the owner is
requesting payment.
Verify through TRACS that the amount of HAP paid on behalf
of each resident is accurate.
Verify that all recertifications are completed by the
owner agent in a timely manner and entered into TRACS.
Verify that payment request does not include any units
where Section 8 assistance has been abated.
Analyze adjustments required to prior month's vouchers to
determine accuracy and validity.
Determine if authorized rent or utility allowance
adjustments have been implemented timely and accurately.
Verify pre-approval of Section 8 Special Claims (see item
B).
Notify the owner, in writing, of any corrections required
and track corrections.
Verify that project owners are complying with current HUD
rules and regulations.
B. Verify and Authorize Payment Only on Valid Section 8 Special Claims
for Unpaid Rent, Resident Damages and Vacancy Loss
Property owners may claim reimbursement from the CA for unpaid
rent, resident damages, and vacancy losses on eligible units. The
claims must be pre-approved by the CA before being submitted with the
monthly voucher.
Analyze, verify and approve/disapprove claims using
information in handbooks, regulations, Notices, TRACS and information
provided by the owner.
Enter data into monitoring program using a HUD compatible
spreadsheet program.
Approve/disapprove claims, execute forms and return to
owner for their submission with next voucher.
C. Disbursement of Section 8 Funds to Owners
Disburse payments to owners through electronic fund transfer (EFT)
transaction no earlier than the first of the month or no later than the
first business day of the month after approval of Section 8 voucher
(see item A)
Reference:
HUD Handbook 4350.3
Incentive Based Performance Standards
6. CA must promptly review each monthly voucher submitted by an
owner, and agree with or modify it, so the monthly payment to the owner
is sent no earlier than the first of the month or no later than the
first business day of the month.
7. On a monthly basis CAs will provide written formal notification
of corrective actions including income verification that results in
overpayment to owners within 10 days of CA's verifying and certifying
of the vouchers, discrepancies to owners and monitor for adequate
resolution. Resolution must be completed within 30 days.
Quality Assurance
On-Site Reviews
Data Systems Reports
3.6 Health and Safety Issues and Community/Resident Concerns
CA must accept resident complaints and follow-up with owners to
ensure that owners take appropriate action.
Outcome: Resolved health and safety issues and positive outgoing
community/resident relations and communications.
Requirements:
[[Page 27363]]
A. Respond to Life Threatening Health and Safety Issues
Respond to all life threatening health and safety issues
immediately.
Maintain tracking system for inquiries, responses and
corrective actions and submit log to jurisdictional HUD office with
monthly invoices.
Notify owner of all concerns and determine appropriate
corrective action.
Monitor owner's response to concerns and implementation of
corrective actions.
B. Respond to All Non-Life Threatening Health and Safety and Community/
Resident Concerns
Respond to all non-life threatening health and safety
issues within 2 business days of notification during normal business
hours.
Maintain tracking system for community/resident inquiries,
responses and corrective actions and submit log to jurisdictional HUD
office with monthly invoices.
Notify owner of all concerns and determine appropriate
corrective action.
Monitor owner's response to concerns and implementation of
corrective actions.
References:
HUD Handbook 4381.5 REV-2
Incentive Based Performance Standards
8. Respond, document and notify owner of life-threatening health
and safety issues, inquiries/complaints immediately within an hour or
prior to close of business day (whichever is sooner).
9. CA documents their initiatives and actions taken to notify the
owner of non-life threatening health and safety issues inquiries/
complaints and responds to residents within two business days of
notification. CA continues to provide follow-up to residents on actions
taken every two weeks until final resolution is reached. Documentation
of all action is recorded.
Quality Assurance
On-Site Reviews
Monthly Invoice
3.7 Section 8 Budgets, Requisitions, Revisions and Year-end Statements
To receive monthly ACC payments, Section 8 budgets and requisitions
(and revisions as required) must be submitted for each HAP contract at
least 90 days before the beginning of the fiscal year. Also to receive
monthly ACC payments, Year-end settlement statements must be prepared
and submitted at least 45 days prior to the beginning of the CA fiscal
year.
Outcome: CA submits financial documents to HUD accurately and
timely.
Requirements:
Prepare and submit annually to HUD (FMC) Section 8 budget
(HUD Forms 52672 and 52673) at least 90 days prior to the beginning of
the CA fiscal year.
Prepare and submit annually to HUD (FMC) Annual
Requisition for Partial Payment of Annual Contributions (HUD Form
52663) 90 days prior to the beginning of the CA fiscal year.
Perform monthly comparison of HAP payments to owners and
monthly ACC partial payments from HUD.
Prepare and submit to HUD (FMC) revised Budget and
Requisition (HUD Form 52663) when/if monthly comparison indicates ACC
payments will exceed HAP payments by more than 5%. CAs must complete
submissions by their Fiscal Year End date.
Prepare and submit to the FMC Year-end Settlement
Statement (HUD Form 52681) within 45 days of the year end.
Reference:
HUD Handbook 7420.7, Chapter 8
Incentive Based Performance Standards
10. CAs must submit to the FMC, acceptable and accurate Budget and
Annual Requisition for each HAP contract 90 days prior to the beginning
of CA's FY. Where monthly reviews of HAP payments to owners and ACC
payments received from HUD indicate that the CA will be overpaid by
more than 5%, the CA must submit a revised Budget and Annual
Requisitions to reduce future payments accordingly. The Revisions
(revised Budget and Requisition) must be submitted no later than the
1st day of the month following identification of overpayment.
11. CAs must submit to the FMC, the year-end statement within 45
days of the end of the CA's fiscal year.
Quality Assurance
Monthly Invoice
FMC Status Report
3.8 Contract Administrator's Audit
CA is required to maintain complete and accurate financial records
covering the CA's contract administration of covered units under the
ACC.
Outcome: Contract Administrator's records are complete and
accurate.
Requirements:
Records concerning contract administration under the ACC
must be distinct and separate from all other business of the CA.
Maintain complete and accurate records regarding
activities relating to each HAP contract for covered units.
CAs required to submit separate audited financial
statements under OMB's Circular A-133 shall:
Provide the FMC with annual financial audit of the CA's
activities the earlier of 30 days after receipt of the auditors report
or 9 months after the CA's fiscal year end (FYE) (in accordance with
OMB Circular A-133). This audit must be performed by an independent
public accountant (IPA).
The Contract Administrator shall submit audited annual
financial statements that fully comply with the requirements of OMB
Circular A-133 within the earlier of 30 days after receipt of the
auditor's report(s) or nine months after the end of the audit period.
However, in cases where a Contract Administrator submits its audited
financial statements more than 60 days after the end of its fiscal
year, the CA shall submit all financial reports required by the HUD in
unaudited form within 60 days after the end of its fiscal year.
Submission of financial information shall also be in
accordance with the requirements of HUD's Uniform Financial Reporting
Standards (24 CFR, Part 5, Subpart H). The audit shall be performed by
an independent auditor, procured using the standards set forth in
Circular A-133 and other referenced documents in Circular A-133.
In accordance with the ACC, CAs not required to submit
separate audited financial statements under OMB's Circular A-133 shall:
Submit annual unaudited financial statements within 60 days of the end
of the CA's fiscal year. For-Profit instrumentality entities shall
submit audited financial statements within 60 days of the end of the
CAs fiscal year.
In the event of audit findings that require corrective
actions, the CA shall provide HUD with a proposed plan of corrective
actions as part of the audit submission package. By the first day of
each month, the CA shall provide HUD with a status report of corrective
actions being implemented until all actions are completed. Corrective
actions must proceed as rapidly as possible. Failure to provide the
required audited financial information and/or timely implementation of
corrective actions may result in default of the terms and conditions of
the ACC.
Reference:
ACC contract
HUD Handbook 7420.7
OMB Circular A-133
[[Page 27364]]
Incentive Based Performance Standards
12. The CAs that are required to comply with OMB's Circular A-133
will provide HUD with unaudited financial statements, including
supplemental data, within 60 days after the CA's FYE and audited
financial statements no later than 9 months after the CA's FYE. CAs
that are not required to comply with OMB's Circular A-133 will submit
annual unaudited financial statements to HUD within 60 days of the end
of the CA's fiscal year. For-Profit instrumentality entities shall
submit audited financial statements to HUD within 60 days of the end of
the CAs fiscal year.
Quality Assurance
100% Review of the Audit
3.9 Deficient Annual Financial Statements (AFS)
HUD regulations require owners of properties with project-based
Section 8 contracts to submit Annual Financial Statements to the Real
Estate Assessment Center (REAC) when required by the HAP contract.
Outcome: Financial condition of projects is verified.
Requirements: Where REAC's assessment of AFS reflects unacceptable
performance and compliance indicators, owners must develop a plan
outlining specific actions to correct deficiencies.
CAs must:
Track the owners' deficiencies and their progress along
their plan until resolved.
Submit monthly reports by the first day of each month that
indicate the owners' progress and activities in the previous month.
Submit a final report to HUD within 30 days of owners'
resolution of deficiencies.
Reference
HUD Handbook 2000.04 REV-1
OMB Circular A-133
Federal Register, September 1, 1998
Incentive Based Performance Standards
13. CA provides HUD with documentation by the first day of each
month that indicates the owners' progress and activities in the
previous month.
14. CA monitors the unacceptable performance and compliance
indicators. CA provides documentation to HUD within 30 days of
resolution.
Quality Assurance
On-Site Reviews
Data Systems Reviews
3.10 Renewals of Expiring Section 8 Contracts
As HAP contracts come to an end, owners must apply for contract
renewals to have units remain with Section 8 project-based assistance.
CAs must ensure that owners fulfill their obligations to residents and
HUD that are commensurate with owner renewal decisions.
Outcome: Expiring Section 8 contracts are renewed
Requirements:
Verify that owners provide the required one-year notice to
residents of properties with expiring Section 8 contracts.
Monitor owner actions with regard to providing a minimum
of 90 days notice to CA of intent to renew or not renew the expiring
contract, according to current Housing Notices.
If the owner opts not to renew, take the actions described
in Task 3.4.
Maintain copies of owner's notification to residents of
expiring contracts.
If the owner chooses to renew, determine which option
(form of renewal) the owner wishes to use and notify the jurisdictional
HUD office.
Prepare HAP renewal contracts.
After receipt of confirmation of funding for renewal from
HUD, ensure the HAP contract is executed (signed) by the owner and the
CA.
Execute and distribute copies of the HAP within one
business week to the owner, jurisdictional HUD office, and CA files.
Reference
Notice: H-98-34
Incentive Based Performance Standards
15. Monitor, process and execute HAP contract documents.
Quality Assurance
On-Site Reviews
Data Systems Reports
Monthly Invoice
3.11 General Reporting Requirements
To track the performance of the Section 8 program, monitor and
evaluate CA performance, and identify technical assistance needs, HUD
requires the CA to regularly report its activities. Consequently, the
CA shall provide to jurisdictional HUD offices Monthly, Quarterly, and
Annual reports.
Outcome: HUD can monitor and evaluate program and CA performance
from CAs accurate, timely reports.
A. Monthly Reports
CAs must submit reports and an invoice to the Government Technical
Representative, or Monitor (GTR/GTM) by the 10th business day of each
month for the previous month's activities.
Hot topics--Projects that required special attention due
to such matters as, abatement actions, excessive resident complaints,
inquiries from governmental officials or general public.
Work Plan Status Report that details:
Number of areas reviewed and services performed, including date of
review and services; name/s of CA staff performing the review and
performing the services.
Any significant administrative actions that could affect
the contract.
Quality control activities and results
Major accomplishments, success stories, etc.
Noteworthy meetings
Pending issues
B. Quarterly Reports
CAs must submit Work Plan (updated) and status reports to the
designated GTR/GTM.
C. Annual Reports
By the close of each contract year, CAs must submit to HUD a report
that details its progress against the Work Plan for that year. The
report should detail all of the CA actions and services with dates,
locations, and employee name for that calendar year. Also at the close
of the contract year, CAs must submit a Work Plan for the following
year that details its plan to satisfy the ACC's servicing requirements.
Incentive Based Performance Standards
16. HUD receives CA's (a) Monthly Reports by the 10th business day
following the end of the month; (b) Quarterly reports by the 10th
business day following the end of the quarter; (c) Annual reports by
the 20th business day following the end of the CA's contract year.
Quality Assurance
On-Site Reviews
Data Systems Reports
Review of submitted reports
3.12 Physical Inspection
The Department is conducting a baseline physical inspection for
every Section 8 property with a HUD-administered HAP contract. The Real
Estate Assessment Center's (``REAC'') physical inspection software and
protocol is being used for all inspections (See http://www.hud.gov/
reac/reaphyin.html). Once this baseline is completed, HUD will
determine frequency of future inspections. HUD
[[Page 27365]]
may issue a task order under the ACC to have the CA perform physical
inspections. If such a task order is issued, HUD will negotiate with
the CA a fixed-price fee for such services at that time.
Outcome: Verify completion of corrective actions based upon the
analysis of the results of the physical inspections conducted on
properties included in the ACC. Take legal actions as directed by HUD
for enforcement of the HAP contract.
Requirements:
Post Inspection Activities
Provide follow-up with owner on violations and corrective
actions needed.
Provide owner with time-frame to correct violations.
Work with owner to eliminate the deficiencies.
Abate payments when owner fails to correct violations
within designated time period.
Notify jurisdictional HUD office of abatement of payments
and specific reasons for the action.
Notify jurisdictional HUD office of the completion of
required actions.
Take legal action as directed by HUD for enforcement of
the HAP contract.
Reference
HUD Handbook 4350.1
Federal Register, September 1, 1998
Incentive Based Performance Standards
17. CA monitors the unacceptable performance and compliance
indicators. CA continues to provide follow-up to HUD on actions taken
every 30 days until final resolution is reached.
4. Contract Administrator Fee
4.1 Terms
Administrative fee. The monthly fee HUD pays the PHA for each
covered unit under HAP contract on the first day of the month. The
administrative fee is the total of the basic fee plus the incentive
fee. The fee amount is detailed in the ACC.
Basic fee. The basic fee is the agreed fee per unit per month. HUD
pays the basic fee to the CA for each covered unit under HAP contract
as of the first day of the month during the ACC term. There is a
separate basic fee amount for each FMR area in the CA service area. The
ACC will state the agreed basic fee amount for each FMR area.
HUD pays the basic fee for performance of tasks described in the
Statement of Work and in accordance with the CA's annual workplan. Such
performance is indicated by monthly invoices (and validated through
HUD's quality assurance). The total amount of the basic fee will vary
each month depending on the total number of eligible units to which it
will be applied each month. Of that total, HUD has allocated each task
to be performed a certain percentage of the total fee available. The
Performance Requirements Summary (PRS) (see Section 4.8) states the
basic fee amounts for all portions of the CA service area.
Incentive fee. An additional fee beyond the basic fee that the CA
may earn. As reflected in the PRS, HUD will pay an additional payment
to the CA for performance on specified Statement of Work tasks that
exceeds HUD acceptable quality level for the IBPS associated with that
task (see PRS, Section 4.8). HUD will pay up to a maximum 25% of the
total incentive fee pool at the end of each quarter. Each task which
has an incentive applied to it also identified the percentage of the
incentive fee pool that applies to that task. The amount of the
incentive fee payable to the CA is determined by HUD, based on HUD's
evaluation of the CA's performance in administration of covered units.
The amount of the incentive fee per unit per month may not exceed the
maximum incentive fee stated in the ACC.
Disincentive. Deductions levied against the basic fee for
performance that falls below the acceptable quality level. The ACC
states the disincentive for each Statement of Work task. The PRS
(Section 4.8) specifies the penalty for each IBPS task as a percentage
of the basic fee amount.
Earned basic fee. The basic fee amount per unit per month for each
IBPS task minus all applicable disincentive fees for any such IBPS
task.
4.2 Evaluation of CA Performance
During the ACC term, HUD will conduct a monthly evaluation and
rating of the CA's performance in contract administration of the
covered units, and shall issue a performance rating based on such
performance. As described below, payment of the fees is based on the
HUD rating of the CA's performance.
HUD determines the amount of the earned basic fee for each CA per
unit month by review of data submitted in the monthly invoice. HUD
determines the amount of the incentive fee earned by the CA per unit
per month by quarterly scoring of the CA's contract administration
performance during the ACC term. The monthly review and quarterly
scoring is based on the CA's performance of the task categories used as
incentive based performance standards (IBPS), as described in the
Statement of Work of this RFP. Monthly, HUD rates the CA's performance
in completion of the IBPS to determine the earned basic fee by
calculating a ``percentage completed'' for each IBPS task. In a similar
manner, quarterly HUD rates the CA's performance in completing IBPS
task to determine the earned incentive fee.
4.3 Basic Fee
In submitting their proposals, offerors are advised that, during
the term of the ACC, the basic fee per unit month for each FMR area in
the CA service area shall not exceed two (2) percent of the local two
bedroom existing HUD Fair Market Rents (FMR) published in the Federal
Register on October 1, 1998 (and effective the same date) and any
revisions to such FMRs published in the Federal Register prior to award
of the ACC. The entire national listing of the FMRs is located at
http://www.hud.gov/local/atl/atl42322.html.
For your information, we have provided a table that lists by state,
the total number of units by applicable FMRs. You may find this table
with an explanation at http://www.hud.gov/fha/mfh/rfp/sec8rfp.html.
In responding to the RFP, the offeror's proposal must specify the
proposed basic fee per unit per month (for the initial two year term
and for each of three one year renewal terms. See Proposal Submission
Form (Attachment II). If the offer is accepted, the ACC with the CA
will specify the agreed basic fee amount during the ACC term. The fee
will simply be stated as a percentage of the FMR as described above.
The amount of fee proposed will be included in the evaluations for
acceptability and to determine the price proposed reflects the proposed
technical approach. The CA shall also submit supporting cost data as
shown on the attachments.
As an example, if the FMR for a covered unit was $400 and the CA
had proposed a price of 1.7%, then the basic fee for each covered unit
would be $6.80. If the CA had an inventory of 10,000 covered units as
of the 1st of the month, then the total basic fee available for that
month would be $68,000. Since the PRS indicates that 5% of the fee will
be applied to IPBS # 1, then $3,400 would be allocated to IPBS #1. The
CA's performance of IPBS # 1 is evaluated as described to determine if
the CA is due the full amount of the basic fee for the month.
4.4 Incentive Fee
In addition to the basic fee, the CA may earn an incentive fee
awarded by HUD for CA performance of the contract administration
services for designated
[[Page 27366]]
IBPS items that exceeds acceptable quality levels of performance.
Determination of the amount of the incentive fee payment is specified
in the PRS (Section 4.8).
The maximum incentive fee per covered unit per month HUD will
evaluate the CA's performance in providing contract administration
services for all covered units under the ACC for earned incentive fee
quarterly. This evaluation will determine the portion of the incentive
fee that the CA has earned for that quarter. As an example, if the FMR
for a covered unit is $400, then 1% would be $4. If a CA had 10,000
covered units as of the 1st of the month, then the total incentive pool
would be $40,000 for that month. Due to changes in the number of
covered units, the subsequent two months may have provided $38,000 and
$41,000, which would result in a total of $119,000 for the quarterly
incentive pool. If one IPBS item was to cover 25% of the pool, then up
to $29,750 in incentive fees could be earned for that specific IBPS
factor.
HUD may add or modify performance standards during the ACC term,
may add or modify the factors used to measure performance, and may
specify the amount of the incentive fee for a specified level of
performance. However, HUD must notify the CA of any such changes before
the rating period for which such changes are used to rate CA
performance.
4.5 Fee Payment
Each month, the CA shall determine the number of eligible units
that were being managed as of the 1st day of the month. The CA shall
then apply the accepted basic fee percentage to the covered number of
units to establish the total available basic fee and the 1% to
determine the amount of the incentive fee pool for that month.
4.5.1 Payment of Basic Fee
For tasks that are indicated as being paid annually, the CA shall
apply the percentage of the IPBS factor to that monthly payment and
deduct that from the total available fee. The CA shall then determine
their compliance with the acceptable quality levels established in the
ACC for tasks to be paid monthly and apply any appropriate reductions
to the available fee. The CA must invoice HUD by the 5th day of each
month for the amount of the basic fee earned for the month. For tasks
for which annual payments of ongoing basic fees apply, the monthly
amounts will be pooled into a total amount available for application of
the AQL and the CA must invoice HUD by the 5th day of the 12th month of
the ACC performance period. Each invoice shall be fully supported by
documentation of the CA's achievements relating to the required AQL of
each IPBS factor. In the event that subsequent HUD quality assurance
reviews determine the CA did not meet the AQL established, HUD may
adjust the payments of subsequent invoices to reflect the amounts that
should have been withheld.
Notwithstanding the reductions in the fee for failing to meet the
AQL, failure to complete the tasks may result in default of the CA for
failing to comply with the terms and conditions of the ACC. HUD may
terminate the ACC at any time in whole or in part if HUD determines
that CA has committed any default under the ACC.
4.5.2 Payment of Incentive Fee
HUD will pay the incentive fee on a quarterly basis. HUD will base
the amount of the incentive fee on the CA's performance against the
Incentive Based Performance Standards listed in the Statement of Work.
HUD will review the CA's performance relative to its annual work
plan and progress reported in the monthly invoices for the applicable
quarter. The HUD findings will be compared to the CA invoice for the
incentive fee and adjustments may be made to reflect the results of the
HUD findings.
4.6 Availability of Funds
The award of the ACC and subsequent performance periods as well as
all fee payments are subject to the availability of appropriated funds
on an annual basis.
4.7 Use of Fee Income
The CA may use or distribute payments for the monthly on-going
administrative fee that they earn under the ACC for any purpose apart
from the use of these fees to reimburse, compensate or transfer any
fees to the owners or management agents (or their affiliates) of the
projects being serviced by the CA. HUD may reduce or request
reimbursement of administrative fees paid if subsequent quality
assurance indicates the performance indicated by the CA was not
attained.
4.8 Performance Requirements Summary
Each task of the Statement of Work has at least one IBPS standard
associated with it. These IBPS are central to the determination of
earned basic and incentive fees.
The table below details for each performance standard:
The IBPS number.
The task and SOW requirement to which the IBPS applies.
The acceptable quality level.
The percentage of the basic fee that applies to the
standard.
Any applicable incentive fee and it method of calculation.
Any applicable disincentive and its method of calculation.
The method that HUD will use to assure the quality of the
CA's reported performance.
The frequency of payments for the basic fee.
The information in the table below will govern HUD's payment of CAs
for all work performed under the ACC.
BILLING CODE 4210-27-P
[[Page 27367]]
[GRAPHIC] [TIFF OMITTED] TN19MY99.000
[[Page 27368]]
[GRAPHIC] [TIFF OMITTED] TN19MY99.001
[[Page 27369]]
[GRAPHIC] [TIFF OMITTED] TN19MY99.002
BILLING CODE 4210-27-C
[[Page 27370]]
5. Guidance for Submitting Proposals
5.1 Service Area Designation
Proposals in response to this solicitation must clearly designate
the intended service area. Offerors must bid to provide contract
administration services for areas no smaller than an individual State
(or U.S. Territory). HUD will accept proposals covering the entire
nation, multiple Multifamily Hubs, individual Multifamily Hubs, or any
combination of states, but no smaller than an individual State (or U.S.
Territory). All multi-state proposals must provide a separate cost
proposal for each state within the proposed service area (see
Attachment II.B). HUD will evaluate proposals for areas larger than an
individual State on a state by state basis.
The information in this section governs the procedures Offerors
must follow to submit proposals in response to this RFP. Failure to
comply with the guidance of this section will disqualify an Offeror's
proposal from consideration by HUD.
5.2 Proposal Organization
Offerors must submit one original and three (3) copies of their
proposals. All proposals must contain two volumes: a technical proposal
that explains the offeror's technical capacity to perform the tasks of
the RFP and a cost proposal that indicates the offeror's price and
supporting documents to provide CA services. Submit technical and cost
proposals as separately bound volumes. Offerors must divide and tab
technical proposal into three sections, limited by the specified number
of pages:
1. Understanding and Technical Approach--20 pages
2. Management Capacity and Quality Control--20 pages
3. Past Performance--10 pages (Total)
(a) Key Personnel--5 pages
(b) Firm--5 pages
Proposals exceeding the allowable page limits will only have the
number of pages specified evaluated (e.g. Factor 1 will only have the
first 20 pages evaluated; remaining pages will not be reviewed). Page
limits refer to one side of an 8\1/2\ x 11 piece of paper using
standard 10 pitch font.
Offerors shall include with the technical proposal an appendix
which includes the following:
(1) Resumes of the project team.
(2) A statement of possible conflict of interest in the appendix.
This statement should identify properties in the proposed coverage area
of the offeror in which the offeror has a financial interest.
(3) A copy of the offerors' (the PHA and all organizations that
form the instrumentality entity) most recent audit of the offeror's
financial records. The appendix does not count toward the page
limitation.
Offerors are advised that different technical evaluation panel
teams will review proposals. The Technical proposal shall be divided
according to the stated evaluation factors and shall be submitted in
physically distinct sections by each evaluation factor. Individual
panel members may review only one evaluation factor; therefore,
offerors should be careful to fully respond to each factor separately,
and not rely on information in another factor to be a part of the
response. Pages with each factor shall be numbered consecutively,
including any appendixes.
The cost proposal shall include the CA's proposed percentage of the
FMR for covered units on the sheet provided herein. The cost proposal
shall also provide supporting cost data to ensure the evaluation panel
can determine the prices proposed are reasonable for the technical
approach proposed. Failure to adequately explain the price proposed may
result in a determination the CA is unable to perform at the stated
price or that the price is unreasonable based upon the technical
approach described. Sample forms for providing cost data are attached
and should be supported by a narrative to the extent necessary.
Offerors are not required to follow the samples completely, but shall
provide the information requested to the extent possible.
5.3 Proposal Due Date
Offerors must submit proposals no later than 5:00 PM EDT, Friday,
July 15, 1999. Offerors must submit proposals to: U.S. Department of
Housing and Urban Development, 451 7th Street, SW, Office of the Deputy
Assistant Secretary for Multifamily Housing Programs, Room 6106,
Washington, DC 20410.
Offerors must clearly mark packages containing proposals ``Proposal
for Section 8 Contract Administration Services.''
The Department will not accept proposals that arrive after the
above date and time or at any other address. HUD will not be
responsible for proposals lost or misdirected due to improper labeling.
5.4 Offeror Questions/Pre-Proposal Conference
HUD will conduct a Pre-Proposal Conference to discuss this request
for proposals at length and answer questions. The agenda for the
conference will include time for those potential respondents'
interested in forming partnerships with other entities to meet.
Date: June 3, 1999.
Time: 9:30 a.m. to 3:00 p.m. EDT.
Location: To Be Announced at http://www.hud.gov/fha/mfh/rfp/
sec8rfp.html.
HUD encourages potential Offerors who plan to attend the Pre-
Proposal Conference to submit questions in advance, by sending an e-
mail to ``Prebiddersconf__Sec8rfp@hud.gov''. All questions and the
responses will be posted at the RFP website, www.hud.gov/fha/mfh/rfp/
sec8rfp.html. At the Pre-Proposal Conference HUD will be sure to
discuss the questions that have generated the most interest.
If attendees raise additional questions as a result of the
discussion at the pre-proposal conference, HUD will respond to the
questions at the conference as time permits. However, if time has
expired and/or if HUD must obtain additional information to provide an
appropriate response, HUD will post a transcript of the conference and
the answers to any unanswered questions at the RFP website.
In addition to a copy of the transcript, the RFP web site currently
contains a database of current properties with Section 8 assisted units
and a description of the Section 8 program. After the conference, the
RFP website will provide a tool for offerors to pose and for HUD to
answer any further questions.
5.5 Amendments and Additional Guidance
HUD may amend this RFP. All amendments or additional guidance will
be posted on the website. Offerors should check the website regularly
for any amendments to the RFP.
5.6 Contract Term
HUD will award an ACC pursuant to this RFP for an initial term of
two (2) years. The CA is reminded however, that continued performance
beyond the first year of the ACC is contingent upon the availability of
appropriated funds.
HUD may unilaterally renew the ACC for up to three (3) additional
one-year terms. Each such renewal shall be at HUD's sole discretion.
The Department will use performance as a paramount factor in renewal
determinations.
6. Equal Employment Opportunity Compliance
The CA shall not discriminate against any employee or applicant for
employment because of race, color,
[[Page 27371]]
creed, religion, sex, handicap or national origin. The CA shall take
affirmative action to ensure that applicants and employees are treated
without regard to race, color, creed, religion, sex, handicap, or
national origin. Such action shall include, but not be limited to, the
following: employment, upgrading, demotion, or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other
forms of compensation; and selection for training, including
apprenticeship.
The CA shall post in conspicuous places, available to employees and
applicants for employment, notices to be provided by HUD setting forth
the provisions of this nondiscrimination clause. The CA shall assure in
all solicitations or advertisements for employees placed by or on
behalf of the CA that all qualified applicants will receive
consideration for employment without regard to race, color, creed,
religion, sex, handicap or national origin. The CA will incorporate the
foregoing requirements of this paragraph in all of its contracts for
project work, except contracts for standard commercial supplies or raw
materials, and will require all of its contractors for such work to
incorporate such requirements in all subcontracts for project work.
7. Factors for Award
Proposals cannot merely offer to provide services in accordance
with the requirements of the RFP, rather, they must provide a detailed
and concrete description of how the offeror will perform these
requirements in operation under the ACC.
HUD will evaluate proposals according to the following:
7.1 Understanding and Technical Approach--50 Points
Offeror's proposal must include a demonstrated understanding of the
role of the CA and the full range of the work to be performed. The
proposal also must describe the Offeror's plan and approach to perform
the tasks of the statement of work. The proposal shall specify any
services or functions to be provided or performed by the parent entity,
or by any other entity which holds a direct or indirect interest in
such instrumentality, to carry out or support Section 8 contract
administration in accordance with the ACC. The proposal should detail
the Offeror's automated systems that will support it in the performance
of SOW tasks (including information technology (IT) support,
accessibility, documentation, security, and flexibility). In addition,
the offeror must describe the automated system that it will use to
provide contract administration services for project-based HAP
contracts under Section 8.
The proposal must provide a proposed plan for the transfer of
responsibility for contract administration from HUD to the CA that
includes, but need not be limited to, how the offeror will be prepared
to begin operations within 60 calendar days after award of the ACC.
7.1.1 Data Systems
Offerors must demonstrate their ability to comply with all
processing and reporting requirements applicable to CA functions
contained in this RFP, including requirements for contract
administrators outlined in Section 108 of 24 CFR, Part 208)--Electronic
Transmission of Required Data for Certification and Recertification and
Subsidy Billing Procedures for Multifamily Subsidized Projects (a/k/a
the Automation Rule). CAs are expected to have Internet Service
Provider access for communication with HUD. (At this time, HUD plans
for most data entry and data transfer with CAs to occur over the
Internet).
CAs must be capable of implementing revisions in processing and
reporting, as specified by HUD, to conform to changes in present or
future policy and procedures pertaining to CA functions. With respect
to data systems and automated reporting requirements, HUD will provide
reasonable advance notice of the need for such change a minimum of 90
days before CA compliance will be required.
CAs must provide HUD with data on HAP contracts, rent adjustments,
contract renewal processing, management and occupancy reviews, annual
financial statements and other documents and information relevant to
the tasks and responsibilities outlined in this RFP. Where automated
reporting tools do not already exist, HUD intends to develop
specifications for receiving a substantial portion of these data
electronically. CAs must have the capability to transmit such data to
HUD via the Internet as prescribed by HUD.
Offerors must demonstrate that they have the facilities to receive
resident certification and recertification data (form HUD 50059) and
voucher data (form HUD 52670) electronically from the owners or
management agents in a form consistent with reporting requirements
specified by HUD for the HUD TRACS System. Offerors must also
demonstrate the ability to transmit HUD 50059 data to the HUD TRACS
Tenant System and HUD 52670 data to the HUD TRACS Voucher/Payment
System, and to receive the messages transmitted in return from TRACS.
As part of these requirements, the CA must have an ability, acceptable
to HUD, for communicating errors in HUD 50059 and HUD 52670 submissions
to the owners or management agents. CAs are expected to comply with
requirements applicable to contract administrators in the Automation
Rule (24 CFR 208).
HUD currently receives data submissions to the TRACS Tenant System
and the TRACS Voucher/Payment System via SprintMail, but there are
plans to accept these transmissions via the Internet. Internet access
also provides the CA with the ability to review the resident and
voucher data it has transmitted to HUD to ensure that it is correct and
consistent with the data maintained in its own files.
CAs will be required to accept and forward to the owners or
management agents the Benefit History Reports from HUD that provide
confirmation of Social Security and Supplemental Security Income.
Alternatively, the CAs may require the owners or management agents to
obtain Internet access to retrieve their own Benefit History Reports
from HUD.
Resident reporting requirements specified for HUD's TRACS Tenant
System and voucher reporting requirements specified for the TRACS
Voucher/Payment System are published on the TRACS Documents Page on the
world wide web. The CAs are responsible for meeting the requirements
specified in these documents. Offerors can access the TRACS Documents
Page at http://www.hud.gov/fha/mfh/trx/html/trxdocs.html.
Offerors must demonstrate that they have an account with a
federally insured financial institution capable of receiving and
sending electronic fund transfer (EFT) transactions.
CAs must have facilities acceptable to HUD for making timely and
accurate HAP subsidy payments to project owners with HAP contracts
under an Annual Contributions Contract (ACC) contract. CAs also will be
required to transmit budget, requisition, and year-end settlement data
to HUD via the Internet, as specified by HUD.
7.2 Management Capacity and Quality Control Plan--50 points
The offeror shall fully demonstrate a superior detailed quality
control program to (1) ensure the contract performance requirements are
met, (2) provide specific internal control programs to provide
accountability and
[[Page 27372]]
separation of duties to detect and prevent potential fraud, waste, and
abuse of funds, and (3) identify processes/procedures to prevent,
detect, and resolve actual, or appearances of, conflicts of interest of
any staff working with the contract or associated with the entity. This
QC Plan must include, but not be limited to
1. A Work Plan including all contract administrative services
breaking down each task/sub-task. The Work Plan shall:
--Specify all areas and services that the CA will review.
--Include a timeline (duration, start, finish) the CA will review
areas/services.
--Depict the resource name/s and task usage for each task/s.
--Include an example of the CA's Work Plan quarterly report Identify
the methodology CAs will use to conduct reviews.
2. The name(s) and qualifications of the individual(s) responsible
for performing the quality control reviews and the specific areas/
services these individuals will inspect.
3. A method to identify performance deficiencies and to take
corrective action to ensure against unsatisfactory performance.
4. A means to document all quality control reviews and any required
corrective action. The CA shall establish and maintain files for such
documentation through the term of this contract. The filing method
shall be such that all information relative to quality control
inspections is logically grouped together and readily accessible. The
files shall be the property of HUD and be made available to HUD upon
demand during the CA's regular business hours. The files shall be
turned over to HUD within 10 business days after completion or
termination of the ACC.
5. Workflow and organizational charts that describe the processes
and controls that the offeror will to implement and operate its
technical approach and to execute the QC plan.
7.3 Past Performance--30 Points
Offerors' proposals must provide documented evidence that, during
the last two years immediately prior to the deadline for receipt of
proposals, the Offeror or related entity has successfully performed
duties substantially similar to the core functions that the CA will
perform under this RFP. Offerors should give special emphasis to past
performance with compliance with and reviews of Multifamily Housing's
occupancy requirements, reviews of property physical condition, and
problem resolution activities with property owners. (``Related entity''
means any entity that will perform services or functions to carry out
or support Section 8 contract administration under the ACC, including
the PHA, a parent entity of the PHA, or partners who are affiliated
with the PHA.)
HUD will give greater weight to proposals that cite recent
experience (the past two years) that is most similar to the
requirements of the RFP.
The proposal must include sufficient information on the relevant
experience, special training and education of proposed personnel
related to the tasks of the SOW.
HUD will allocate points based upon the demonstrated record.
References of successful past performance of the same or similar work
as described in the SOW and in the ACC shall confirm offerors'
demonstrated record. HUD will consider available information, such as
reviews of PHAs.
Offerors' proposals must provide at least five references (not
letters of recommendations) that document past experience. These
references must include:
Project name
Period of performance
Description of the work performed
Contact person information:
Name
Title
Address
Telephone numbers
The relationship of the contact person to the offeror.
Only information that is submitted directly to HUD in the offeror's
proposal package will be considered unless HUD seeks additional
information during the evaluation process.
HUD reserves the right to review and consider the past performance
the offeror may have had with the Department.
8. Proposal Evaluation
HUD will establish one or more panels to review the proposals
received. HUD will only evaluate, rate and rank complete proposals
submitted.
HUD will evaluate each proposal based on the factors for award and
the proposed fees to determine which offerors represent the best
overall value, including administrative efficiency, to the Department.
While the cost or price factor has no numerical weight in the factors
for award, it is always a criterion in the overall evaluation of
proposals. HUD may ask any offeror considered to be among the highest
rated technically acceptable for additional information to assist HUD
in selecting among proposals submitted. HUD may also negotiate the fee
with the highest technically acceptable offerors, one or all, to obtain
high quality at a better value.
HUD shall have discretion to determine the process for evaluation,
rating and ranking of proposals received and for selection of the
contract administrator pursuant to the RFP and for award of ACCs.
Proposals to provide contract administration services for project-
based HAP contracts will be accepted on an individual state,
combination of states, individual Hubs, multiple Multifamily Hubs, and
the entire nation, however, the Department will evaluate proposals
state by state. Therefore, the offeror must complete and submit the
``Proposal Submission Form'' (Attachment II) for each state the CA is
offering a bid.
If there are areas of the country for which HUD does not select a
CA during the above process, either because there were no proposals
covering that area, or none of the proposals were acceptable, HUD may
negotiate with one or more selected offerors to expand the service area
in which the selected offeror will provide contract administration
services.
Before execution of the ACC, each selected PHA must submit a
Previous Participation Certification, Form HUD-2530 and any additional
documentation required by HUD within 10 calendar days of request by
HUD. The PHA and related parties must be cleared through HUD's previous
participation procedure.
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Attachment III Annual Contributions Contract
Annual Contributions Contract
Definitions
ACC. Annual Contributions Contract. This contract between HUD and
the PHA.
Administrative Fee. The monthly fee HUD pays the PHA for each
covered unit under HAP contract on the first day of the month. The fee
amount is determined in accordance with Exhibit E. The administrative
fee is the total of the basic fee plus the incentive fee.
Basic Fee. The amount of the basic fee per unit per month as
specified in Exhibit E for each FMR area. HUD may reduce the basic fee
if HUD determines that the PHA performance of contract tasks is below
the minimum acceptable quality level. HUD determines the amount of such
reduction. Earned basic fees are paid monthly.
Budget Authority. The maximum amount of funds available for payment
to the PHA for each HAP contract. Budget authority is authorized and
appropriated by the Congress. The amount of budget authority for each
HAP contract is listed on Exhibit C.
Covered Units. Section 8 assisted units under HAP contracts
assigned to the PHA for contract administration under the ACC. Covered
units are listed on Exhibit B.
Fiscal Year. The PHA fiscal year. Exhibit C states the last month
and day of the PHA fiscal year.
Funding Increment. Each commitment of funding (budget authority) by
HUD to the PHA for a HAP contract under the ACC. The funding increments
are listed on Exhibit C.
HAP Contract. A Section 8 Housing Assistance Payments Contract.
HUD. The United States Department of Housing and Urban Development.
Incentive Fee. A per unit per month administrative fee in addition
to the basic fee. The incentive fee is paid if HUD determines that PHA
performance of contract tasks is above the minimum acceptable quality
level. HUD determines the amount of the incentive fee. The maximum
incentive fee per unit per month is specified in Exhibit E for each FMR
area. Earned incentive fees are paid quarterly.
PHA. Public Housing Agency.
Portfolio Reengineering. FHA-insured multifamily housing mortgage
and housing assistance restructuring of an eligible multifamily
project.
Program Expenditures. Amounts which may be charged against program
receipts in accordance with the ACC and HUD requirements.
Program Property. Program receipts, including funds held by a
depository, and PHA rights or interests under a HAP contract for
covered units.
Program Receipts. Amounts paid by HUD to the PHA under the ACC, and
any other amounts received by the PHA in connection with administration
of the Section 8 program under the ACC.
Project Reserve. An unfunded account established by HUD for a HAP
contract from amounts by which the amount of budget authority available
for payment under the HAP contract during the owner's fiscal year
exceeds the amount actually approved and paid by HUD. HUD may use this
account as the source for additional payments under the program.
Public Housing Agency. The agency that has entered the ACC with
HUD. Such agency is a ``public housing agency'' as defined in Section 3
of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6)).
Section 8. Section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f).
Service Area. The area where the PHA provides contract
administration services under the ACC. The PHA service area is
described in Exhibit D of the ACC.
ACC
Purpose
This ACC is a contract between the PHA and HUD. The ACC was awarded
by HUD pursuant to a proposal submitted in response to HUD's published
Request for Proposals for PHAs to provide contract administration
services for units receiving project-based Section 8 housing
assistance. (The Request for Proposals was published on May 19, 1999.
Under the ACC, the PHA will provide contract administration services
for dwelling units in the service area receiving project based
assistance under Section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f).
Exhibits. This ACC Includes the Following Exhibits
1. Exhibit A: Request for Proposal
2. Exhibit B: Covered Units
3. Exhibit C: Funding
4. Exhibit D: Service Area
5. Exhibit E: PHA Administrative Fees
6. Exhibit F: ACC Contract Term
HUD Revision of ACC Exhibits
1. HUD may amend Exhibit B:
--To add covered units.
--To withdraw covered units for which the HAP contract has expired or
been terminated, or for which assistance payments are abated.
--To withdraw covered units in connection with portfolio reengineering.
2. HUD may amend Exhibit C:
--To add a funding increment, or
--To remove a funding increment for which the HAP contract has expired
or been terminated, or for which assistance payments are abated.
--To remove a funding increment in connection with portfolio
reengineering.
HUD may amend Exhibit B or Exhibit C of the ACC by giving the PHA
written notice of the revised exhibit. The HUD notice constitutes an
amendment of the ACC.
ACC Term
The ACC term is specified in Exhibit F of the ACC. The PHA shall
provide contract administration services for the covered units during
the ACC term.
PHA Contract Administration Services
Coverage
1. The PHA shall enter into or assume HAP contracts with owners of
covered units to make assistance payments to the owners of such units
during the HAP contract term.
2. During the ACC term, the PHA shall provide contract
administration services for covered units in the service area.
3. HUD will assign to the PHA existing HAP contracts for covered
units. Upon such assignment, the PHA assumes all contractual rights and
responsibilities of HUD pursuant to such HAP contracts.
PHA Services
1. The PHA shall comply, and shall require owners of covered units
to comply, with the United States Housing Act of 1937, applicable
Federal statutes and all HUD regulations and other requirements,
including any amendments or changes in the law or HUD requirements.
2. The PHA shall perform all the core tasks specified in the
Statement of Work contained in the Request for Proposals in accordance
with the law and HUD requirements.
3. The PHA shall perform services under the ACC in accordance with
the HUD-approved proposal submitted in response to the HUD Request for
Proposals, and any HUD-approved modifications of the HUD-approved
proposal.
4. The PHA shall require owners to comply with HUD requirements for
occupancy of covered units, including requirements governing
eligibility for assistance, resident contribution to rent,
[[Page 27380]]
and examinations and reexaminations of family income.
5. The PHA shall determine the amount of housing assistance
payments to owners in accordance with the terms of the HAP contracts
and HUD requirements, and shall pay owners the amounts due under such
HAP contracts.
6. The PHA shall require owners to comply with the terms of HAP
contracts for covered units, and shall take prompt and vigorous action
to enforce the terms of such contracts.
7. The PHA shall take appropriate action, to HUD's satisfaction or
as required or directed by HUD, for enforcement of the PHA's rights
under a HAP contract. Such actions include requiring actions by the
owner to cure a default, termination, or abatement or other reduction
of housing assistance payments, termination of the HAP contract, or
recovery of overpayments.
Fees and Payments
HUD Payments
1. HUD will make payments to the PHA for covered units in
accordance with HUD requirements.
2. For each PHA fiscal year, HUD will pay the PHA the amount
approved by HUD to cover:
--Housing assistance payments by the PHA for covered units.
--PHA fees for contract administration of covered units.
3. The amount approved for housing assistance payments shall be
sufficient to pay owners the amount of housing assistance payments due
to the owners under HAP contracts for covered units.
4. The amount of the HUD payment may be reduced, as determined by
HUD, by the amount of program receipts (such as interest income) other
than the HUD payment.
Fees
1. HUD may approve administrative fees for either of the following
purposes:
--Basic fees.
--Incentive fees.
2. The monthly administrative fee is composed of the basic fee and
the incentive fee. The administrative fee shall be paid (subject to
availability of appropriated funds) for each covered unit under HAP
contract on the first day of the month.
3. The amount of the administrative fee shall be determined in
accordance with Exhibit E.
4. For covered units in each FMR area, Exhibit E states the amount
of the basic fee and the amount of the maximum incentive fee. Basic
fees earned by the PHA shall be paid on the first day of each month.
Incentive fees earned by the PHA shall be paid at the end of each
quarter.
5. If HUD determines that the PHA has performed above the minimum
acceptable quality level in a quarter, the PHA may award an incentive
fee per unit per month in addition to the basic fee. If HUD determines
that the PHA has performed below the minimum acceptable quality level
in any month, HUD may charge a penalty against the basic fee per unit
per month.
6. HUD will not pay an administrative fee for any covered units for
which the HAP contract has expired or been terminated.
7. If HUD determines that the PHA has failed to comply with any
obligations under the ACC, HUD may reduce the amount of any
administrative fee.
Limit on Payments for Funding Increment
The total amount of payments for any funding increment over the
increment term shall not exceed budget authority for the funding
increment.
Reduction of Amount Payable by HUD
1. If HUD determines that the PHA has failed to comply with any
obligations under the ACC, HUD may reduce to an amount determined by
HUD:
--The amount of the HUD payment for any funding increment.
--The contract authority or budget authority for any funding increment.
2. HUD shall give the PHA written notice of the reduction.
3. The HUD notice may include a revision of the funding exhibit
(Exhibit C) that reduces the amount of contract authority or budget
authority for a funding increment. The notice of a revised funding
exhibit, or of revisions to the funding exhibit constitutes an
amendment of the ACC.
Project Reserve
HUD may establish and maintain a project reserve account for a HAP
contract administered by the PHA under the ACC. The amount in the
project reserve is determined by HUD. The project reserve may be used
by HUD to pay any portion of the payment approved by HUD for a fiscal
year.
Budget and Requisition for Payment
1. For each fiscal year, the PHA shall submit to HUD an estimate of
the HUD payments for the program and any supporting data required by
HUD. The budget estimate and supporting data shall be submitted at such
time and in such form as HUD may require, and are subject to HUD
approval and revision.
2. The PHA shall requisition periodic payments on account of each
annual HUD payment. Each requisition shall be in the form prescribed by
HUD. Each requisition shall include certification that:
--Housing assistance payments have only been paid in accordance with
HAP contracts for covered units, and in accordance with HUD
requirements; and
--Covered units have been inspected by the PHA in accordance with HUD
requirements.
3. If HUD determines that payments by HUD to the PHA for a fiscal
year exceed the amount of the annual payment approved by HUD in the
budget for the fiscal year, the excess shall be applied as determined
by HUD. Such applications determined by HUD may include, but are not
limited to, application of the excess payment against the amount of the
annual payment for a subsequent fiscal year. The PHA shall take any
actions required by HUD respecting the excess payment, and shall, upon
demand by HUD, promptly remit the excess payment to HUD.
Financial Management
Use of Program Receipts
1. The PHA shall use program receipts in compliance with the U.S.
Housing Act of 1937 and all HUD regulations and other requirements.
2. Program receipts may only be used to pay program expenditures,
including administrative fees payable to the PHA, and housing
assistance payments for covered units. The PHA shall not make any
program expenditures, except in accordance with the HUD-approved budget
estimate and supporting data.
3. The PHA may use or distribute any earned administrative fee
income, including basic fees and incentive fees, for any purpose.
However, the PHA may not use or distribute administrative fee income to
reimburse compensate or transfer any such income, directly or
indirectly, to the owner of covered units, agents or affiliates.
4. If required by HUD, program receipts in excess of current needs
shall be promptly remitted to HUD or shall be invested in accordance
with HUD requirements.
5. Interest on the investment of program receipts constitutes
program receipts.
Depository
1. Unless otherwise required or permitted by HUD, all program
receipts shall be promptly deposited with a financial institution
selected as
[[Page 27381]]
depository by the PHA in accordance with HUD requirements.
2. The PHA shall enter an agreement with the depository institution
in the form required by HUD.
3. The PHA may only withdraw deposited program receipts for use in
connection with the program in accordance with HUD requirements,
including payment of housing assistance payments to owners and payment
of ongoing administrative fees to the PHA.
4. The agreement with the depository institution shall provide that
if required under a written notice from HUD to the depository:
--The depository shall not permit any withdrawal of deposited funds by
the PHA unless withdrawals by the PHA are expressly authorized by
written notice from HUD to the depository.
--The depository shall permit withdrawals of deposited funds by HUD.
5. If approved by HUD, the PHA may deposit under the depository
agreement monies received or held by the PHA in connection with any
contract between the PHA and HUD.
Fidelity Bond Coverage
The PHA shall carry adequate fidelity bond coverage, as required by
HUD, to compensate the PHA and HUD for any theft, fraud or other loss
of program property resulting from action or non-action by PHA officers
or employees or other individuals with administrative functions or
responsibility for contract administration under the ACC.
Management Requirements
1. The PHA shall (without any compensation or reimbursement in
addition to ongoing administrative fees in accordance with Sec. IV.B of
the ACC) perform all PHA obligations under the ACC, and provide all
services, materials, equipment, supplies, facilities and professional
and technical personnel, needed to carry out all PHA obligations under
the ACC, in accordance with sound management practices, Federal
statutes, HUD regulations and requirements and the ACC.
2. The PHA shall:
--Maintain telephone service during normal and customary business
hours;
--Design and implement procedures and systems sufficient to fulfill all
PHA obligations under the ACC.
--Take necessary actions to maintain good relations with owners,
residents and their representatives, neighborhood groups, and local
government agencies.
--Respond fully and promptly to inquiries from assisted residents, and
from Congress or other governmental entities.
Program Records
1. The PHA shall maintain complete and accurate accounts and other
records related to operations under the ACC. The records shall be
maintained in the form and manner required by HUD, including
requirements governing computerized or electronic forms of record-
keeping. The accounts and records shall be maintained in a form and
manner that permits a speedy and effective audit.
2. The PHA shall maintain complete and accurate accounts and
records for each HAP contract.
3. The PHA shall furnish HUD such accounts, records, reports,
documents and information at such times, in such form and manner, and
accompanied by such supporting data, as required by HUD, including
electronic transmission of data as required by HUD.
4. The PHA shall furnish HUD with such reports and information as
may be required by HUD to support HUD data systems.
5. HUD and the Comptroller General of the United States, or their
duly authorized representatives, shall have full and free access to all
PHA offices and facilities, and to all accounts and other records of
the PHA that are relevant to PHA operations under the ACC, including
the right to examine or audit the records and to make copies. The PHA
shall provide any information or assistance needed to access the
records.
6. The PHA shall keep accounts and other records for the period
required by HUD.
7. The PHA shall comply with Federal audit requirements. The PHA
shall engage an independent public accountant to conduct audits that
are required by HUD. The PHA shall cooperate with HUD to promptly
resolve all audit findings, including audit findings by the HUD
Inspector General or the General Accounting Office.
Default by PHA
Occurrence of any of the following events will constitute a default
by the PHA in performance of its obligations under the ACC:
1. The PHA has failed to comply with PHA obligations under the ACC,
or
2. The PHA has failed to comply with PHA obligations under a HAP
contract with an owner, or
3. The PHA has failed to take appropriate action, to HUD's
satisfaction or as required or directed by HUD, for enforcement of the
PHA's rights under a HAP contract, or
4. The PHA has made any misrepresentation to HUD of any material
fact.
5. HUD's exercise or non-exercise of any right or remedy for PHA
default under the ACC is not a waiver of HUD's right to exercise that
or any other right or remedy at any time.
6. HUD may terminate the ACC at any time in whole or in part if HUD
determines that the PHA has committed any default under the ACC.
7. HUD shall terminate the ACC by written notice to the PHA, which
shall state:
--The reason for termination.
--The date of termination.
8. HUD may take title or possession to any or all program property:
--Upon occurrence of a default by the PHA, or
--Upon termination of the ACC in whole or in part, or
--Upon expiration of the ACC term.
Conflict of Interest
1. Neither the PHA, nor any PHA contractor, subcontractor or agent
for operations under the ACC, nor any other entity or individual with
administrative functions or responsibility concerning contract
administration under the ACC, may enter into any contract, subcontract,
or other arrangement in connection with contract administration under
the ACC in which any covered individual or entity has any direct or
indirect interest (including the interest of any immediate family
member), while such person is a covered individual or entity or during
one year thereafter.
2. ``Immediate family member'' means the spouse, parent, child,
grandparent, grandchild, sister, or brother of any covered individual.
3. ``Covered individual or entity'' means an individual or entity
that is a member of any of the following classes:
--A present or former member, officer or director of the PHA, or other
PHA official with administrative functions or responsibility concerning
contract administration under the ACC.
--If the PHA is an instrumentality of a governmental body:
--A present or former member, officer or director of such governmental
body.
--A present or former member, officer or director of any entity that
holds a direct or indirect interest in the instrumentality entity.
--An employee of the PHA.
--A PHA contractor, subcontractor or agent with administrative
functions or
[[Page 27382]]
responsibility concerning contract administration under the ACC, or any
principal or other interested party of such contractor, subcontractor
or agent.
--An individual who has administrative functions or responsibility
concerning contract administration under the ACC, including an employee
of a PHA contractor, subcontractor or agent.
--A public official, member of a governing body, or State or local
legislator, who exercises functions or responsibilities concerning
contract administration under the ACC.
4. The PHA shall require any covered individual or entity to
disclose his, her or its interest or prospective interest to the PHA
and HUD.
5. During the term of the ACC, the PHA shall not own or otherwise
possess any direct or indirect interest in any covered unit (including
a unit owned or possessed, in whole or in part, by an entity
substantially controlled by the PHA), and shall not claim or receive
any administrative fee for contract administration of a unit in which
the PHA has any such interest.
6. HUD may waive the conflict of interest requirements for good
cause. Any covered individual or entity for whom a waiver is granted
may not execute any contract administration functions or responsibility
concerning a HAP contract under which such individual is or may be
assisted, or with respect to a HAP contract in which such individual or
entity is a party or has any interest.
7. No member of or delegate to the Congress of the United States of
America or resident commissioner shall be admitted to any share or part
of the ACC or to any benefits which may arise from it.
Equal Opportunity
1. The PHA shall comply with all equal opportunity requirements
imposed by Federal law, including applicable requirements under:
--The Fair Housing Act, 42 U.S.C. 3610-3619 (implementing regulations
at 24 CFR parts 100 et seq.).
--Title VI of the Civil rights Act of 1964, 42 U.S.C. 2000d
(implementing regulations at 24 CFR part 1).
--The Age Discrimination Act of 1975, 42 U.S.C. 6101-6107 (implementing
regulations at 24 CFR part 146).
--Executive Order 11063, Equal Opportunity in Housing (1962), as
amended, Executive Order 12259, 46 FR 1253 (1980), as amended,
Executive Order 12892, 59 FR 2939 (1994) (implementing regulations at
24 CFR part 107).
--Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794
(implementing regulations at 24 CFR part 8).
--Title II of the Americans with Disabilities Act, 42 U.S.C. 12101 et
seq.
2. The PHA must submit a signed certification to HUD of the PHA's
intention to comply with the Fair Housing Act, Title VI of the Civil
Rights Act of 1964, the Age Discrimination Act of 1975, Executive Order
11063, Section 504 of the Rehabilitation Act of 1973, and Title II of
the Americans with Disabilities Act.
3. The PHA shall cooperate with HUD in the conducting of compliance
reviews and complaint investigations pursuant to applicable civil
rights statutes, Executive Orders, and related rules and regulations.
Communication With HUD
The CA shall communicate with HUD through the official or officials
designated by HUD.
Exclusion of Third Party Rights
1. A family that is eligible for housing assistance under the ACC
is not a party to or a third party beneficiary of the ACC.
2. Nothing in the ACC shall be construed as creating any right of
any third party to enforce any provision of the ACC, or to assert any
claim against HUD or the PHA.
Public Housing Agency
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Signature of authorized representative
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Name and official title (print)
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Date
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Secretary of Housing and Urban Development
Signature of authorized representative
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Name and official title (print)
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Date
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[FR Doc. 99-12502 Filed 5-18-99; 8:45 am]
BILLING CODE 4210-27-C
