Section 8 Management & Occupancy Reviews have been thetopic of conversation for many years. In 2011, the industry experienced a shiftwhen several Performance Based Contract Administrators (PBCAs) contested newawards of PBCA contracts.
Eleven contracts were uncontested and the PBCAs assignedcontinued to administer the Section 8 contracts including tasks required toperform the Management & Occupancy Reviews (MORs).(Iowa - Iowa FinanceAuthority, Maine - Maine State Housing Authority, Minnesota - Minnesota HousingFinance Agency, Montana - Montana Department of Housing, New Hampshire - NHFinance Housing Authority, North Dakota - ND Housing Finance Agency, Puerto Rico- PR Housing Finance Agency, South Dakota - SD Housing Development Authority,Vermont - Vermont State Housing Authority, Virgin Islands - North Tampa HousingDevelopment, Wyoming - Housing Authority of the City of Cheyenne)
The Traditional Contract Administrators (e.g. Mass Housing,CT Housing and VHDA) continue with business as usual as well.
If your Section 8 property is administered by one of thePBCAs mentioned above or by a Traditional Contract Administrators (TCA), thechanges discussed in this HUDBlast do not necessarily apply to you.
HUD (or representatives assigned by HUD) continues to havethe authority to conduct Management & Occupancy Reviews for both Section 8 andnon-Section 8 properties.
However, in the remaining 42 states, the Section 8 PBCAcontract was modified and Management & Occupancy Reviews conducted by PBCAs weresuspended. This has been the case for roughly five years.
We have heard that theDepartment ofHousing and Urban Development is currentlyconsideringa proposalto permit Performance-Based Contract Administrators to resume conductingManagement and Occupancy Reviews on a nation-wide basis. Using PBCAs to deliverSection 8 MORs is one of several options that HUD is evaluating.
Whether it is now or later, we think thatit is inevitable that the reviews will be conducted at some point, especiallyfor those properties considered "at risk."
Our opinion is that HUD is exploring thebest way to initiate reviews in order to provide feedback to management agentsalerting them to early signs of non-compliance.
While thisinvestigation is still inthe very preliminary stages, and while we are sure our customers workdiligently to maintain compliance, we would suggest you take measures to prepareto participate in an MOR in 2016 - just in case.
So, are you ready? Have you been keeping upwith changes that impact a compliance review? For those of you who participatedin the HUD Hot Topics class in 2015, you have a lot of the information youneeded to:
1) Incorporate changes to verification andsubsidy calculations introduced in Change 4 and by HUD Notice and
2) Review information needed to updatevarious policies and forms such as notices to applicants and residents, HouseRules, Tenant Selection Plans and the application.
We continue to refine the 2016instructor-led classes (delivered by Mary Ross) to focus on changes tocompliance requirements. If the Management & Occupancy Reviews are reinstated(and that's a big IF) then we will develop additional training to meet the needsof our customers.
Be on thelookout for more news!
JoinMary Rossfor a two-day training session thatcombines a review of the latest trends and hottest topics of the day along withanswers to some of the most frequently encountered problems facing affordablehousing owners and agents. Mary utilizes her years of experience trainingaffordable housing professionals to cover the latest topics and trends whileblending in policy and procedure discussions critical to staying compliant.
Trainingincludes sample forms, notices and checklists.
To view the full,two-day agenda, click on the following link:http://www.rbdnow.com/hudhottopics.htm
Class Schedule at a Glance (In Location Order)
To sign up for the HUDBlast,visit our web site atwww.rbdnow.com. Just enter your email address in the box in the center ofthe home page.You canview previously posted HUDBlasts from our web site athttp://www.rbdnow.com/hudblasts.htm
We also encourage you to sign-up for theListserv, so you can receive current RHIIP related information from HUDhttp://www.hud.gov/subscribe/mailinglist.cfm.You canview the RHIIP Tips Archives, under "Listserv-Multifamily RHIIP Tips" athttp://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm
RBD does not act as a legal advisor nor as a regulatory governingagency. The recipient should understand that any materials or commentscontained hereinare not designed for, nor should be relied upon as a source oflegal guidance or as a final authority with respect to any particularcircumstance. Ross Business Development, Inc. makes no warranty ofmerchantability or fitness for a particular purpose or any other warranty of anytype. Owners and management should seek competent legal advice in developing andcarrying out policies and procedures. While we have been diligent in ourefforts to provide comprehensive and accurate regulatory information, RossBusiness Development, Inc. shall not be responsible for errors or inaccuracies.