August 11, 2011

Yesterday afternoon, August 10, HUD Secretary Donovan and Acting FHA Commissioner/Assistant Secretary for Housing Carol Galante informed NCSHA that HUD will reevaluate and revise its PBCA award process in states where it received more than one PBCA application in its recent competition.  Earlier today, August 11, HUD sent all PBCA applicants a letter announcing its decision.

HUD said it is taking this action because it is concerned that the many protests filed with GAO could take months to resolve and potentially delay Section 8 payments, bringing possible harm to residents and properties.  An official statement HUD released the same day said, “Facing a large number of protests from unsuccessful applicants that could have dragged on for months, HUD recognizes the overriding need to ensure lower income tenants do not experience any interruption in service and to guarantee timely payments to building owners.  It is in the best interest of the Department, and more importantly the families living in HUD-assisted housing, that we solicit new proposals in selected states.”

HUD will proceed with executing new PBCA contracts in the 11 states and territories where there was no competition under the recent bidding process:  Iowa, Maine, Minnesota, Montana, New Hampshire, North Dakota, South Dakota, Vermont, Wyoming, Puerto Rico, and the Virgin Islands.  In states where more than one applicant submitted bids, regardless if any bidder filed a protest, HUD will hold a new competition for the PBCA work.

HUD has also indicated that it plans to:

  • Issue a Notice of Funding Availability (NOFA) within 60 days to solicit PBCA applications for the states where there will be a new competition;
  • Contact incumbent PBCAs within 10 days to offer them a six-month contract extension to continue their PBCA work, with six one-month further extensions possible;
  • Reduce fees and tasks under the contract extensions; and
  • Administer the program itself in states where the incumbent PBCA declines to continue to serve beyond its existing contract expiration date. 

HUD sent GAO a letter August 10 informing GAO that HUD is withdrawing the PBCA competition and indicating that it believes this makes all protests moot. 
NCSHA will work with HUD on a number of questions and comments HFAs have on the process and HUD’s planned NOFA.  Please contact NCSHA’s Garth Rieman or Ellen Lurie Hoffman with questions and comments.