NAHMA participated spoke with HUD Multifamily to discuss the PBCA awards process and the next steps for the transition period. All the awardees should have been notified by their Congressional delegations. HUD sent out emails today to all applicants explaining their selection status, score, and the methodology used to select the awardees. The Department also sent out the list of awardees to its field offices today. HUD plans to send letters to property owners next week notifying them of the PBCA transition and providing notices for the owners to post at their properties to notify tenants of the PBCA transition.
HUD has posted the PBCA awardees list and final PBCA transition guide at the Section 8 contract administrator webpage, located here: http://portal.hud.gov/hudportal/documents/huddoc?id=ca_awards.pdf
HUD received 150 applications for 53 contracts. Most states received two or more applications. Only 10 states/contracts had no competition. HUD said that 28 states/contracts will see a change in contract administrators because of the rebid, including several large states. Thirty-two states will be administered by state housing finance agencies (HFA), down from 35 HFAs currently acting as PBCAs. Some HFAs will be serving more than one state. No awardees came close to the contract limits specified in the ACC.
In terms of methodology, HUD first rated each applicant on a "quality score" based on capacity, technological proficiency, quality control plans, etc. A threshold quality score was set and applicants above the threshold quality score went on to the second phase of the selection process. In the second phase, HUD looked at each fee proposal and divided the quality score by the fee proposal to come up with a ratio of quality by fee to determine rankings. HUD explained that this methodology resulted in selections based on quality and cost. The highest ranked applicant for a state received the contract.
The process for awarding the new ACC contracts is being conducted the same as the rules for a NOFA, and as a result, there will not be any opportunity for appeals. Applicants who were not selected can request a "debriefing" from HUD staff to hear the details on why they were not selected. There will not be appeals process for the rebid nor will any applications, including those of the winners, be made public.
The contracts will initially be for two years. HUD said after the first year they will evaluate the PBCAs and the process to determine if it wants to rebid some or all of the contracts of if the Department will extend the contracts.
If there is a contract transition between PBCAs, HUD will ask software providers to do a PBCA to PBCA transfer of the five-year data baseline required in the ACC. HUD will also work to ensure that owners are not impacted by the transition.
The Department informed NAHMA and industry colleagues that the rebid would save HUD close to $100 million in project-based Section 8 administration of the ACC costs for FY 2012 when compared to FY 2011 administration costs, which are $326 million.
If FY 2012 appropriations are not completed on time and there is a continuing resolution, HUD believes they will still be able to complete the PBCA 90 day transition by October 1, unless there is a government shut down.