PBCA “Voluntary” MOR’s Not Permitted by HUD

We are aware that several PBCAs have asked properties to participate (some voluntarily) in “cursory”, “informal” or “practice” MORs.  Kerry Hickman, Deputy Director of HUD’s Office of Housing Assistance Contract Administration Oversight, has confirmed that HUD’s policy is quite clear.

To clarify MOR activity for the 42 PBCAs in contested states only:  The PBCAs are not to conduct MORs (voluntary or otherwise).  If a PBCA receives questions from an owner/agent (i.e. technical questions about items on the HUD Form 9834 used for MORs), the PBCA may answer the questions.

If an owner/agent has made an official request for a site visit due to an emergency or property concern, the owner/agent should contact their HUD field office for assistance.  Likewise, PBCAs should contact their local HUD field offices to report issues of concern that may require HUD follow-up.

Now that the court case brought by PBCAs against HUD has been adjudicated in favor of the PBCA’s, the industry is waiting to see if HUD will reinstate MOR’s in the 42 states or not.  We will  provide  information as it becomes available.

If your property is administered by a PBCA in one of the eleven uncontested states, by a Traditional CA, or by HUD (i.e. PRACs), your MORs will continue as they have in the past.