PBCA Update

On August 15, 2012 the Government Accountability Office (GAO) upheld the protests that were filed against HUD for issuing a Notice of Funding Availability (NOFA) to award PBCA contracts.  This means that the announcements about new CA awards that were expected by August 31 will not be made.

The GAO recommended that HUD use a procurement instrument (such as the RFP – Request for Proposal – used in the past), rather than a cooperative agreement (such as a NOFA), for its contracts for the administration of project based Section 8 Housing Assistance Payments (HAPs).  The GAO also recommended that HUD address the other concerns filed by the protesters in such an RFP, and that HUD reimburse the protesters for their costs to file the protest.

HUD has 60 days (from the issuance of this decision) to respond to the GAO on whether or not it will follow its recommendations.  If HUD does not follow the GAO’s recommendations, then HUD must give written notice of that decision to several Congressional Committees. The issue then becomes a matter between the Legislative Branch and the Executive Branches of government.

Read the GAO’s decision in its entirety.

We understand that NAHMA (National Affordable Housing Management Association) and Leading Age (formerly the American Association of Homes and Services for the Aging) plan to continue conversations with HUD’s Multifamily Director Marie Head regarding HUD’s decision and future plans.

For those properties that have Contract Administrators operating on contract extensions, there will be a longer period during which no MORs will be conducted.  Remember: It is good business practice to continue preparing for those inspections so that you are ready when they return.