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pdfUNITED STATES
Department of Housing and Urban Development
ANNUAL CONTRIBUTIONS CONTRACT
Project-based Section 8 Contract Administration
1
DEFINITIONS
For definitions of terms related to determination of PHA administrative fees,
see also § 4.1 of Exhibit A of the ACC.
ACC. Annual Contributions Contract. This contract between HUD and
the PHA.
ACCEPTABLE QUALITY LEVEL (AQL). The required performance level
for each IBPS task. The AQL for each IBPS task is specified in the
performance requirements summary (PRS).
ADMINISTRATIVE FEE. The monthly fee HUD pays the PHA for each
covered unit under HAP contract on the first day of the month. The
administrative fee (per unit per month) is the total of the basic fee plus the
incentive fee.
BASIC FEE. The sum of the earned IBPS fees for a covered unit. HUD
pays the basic fee (per unit per month) to the PHA for a covered unit under
HAP contract on the first day of the month during the ACC term.
Exhibit E of the ACC specifies the amount of the maximum basic fee per
unit per month for each FMR area in the PHA service area. HUD has
allocated each task to be performed (IBPS task) a certain percentage of the
maximum basic fee amount (IBPS percentage). The performance
requirements summary (PRS) (see § 4.7 of Exhibit A of the ACC) states
the IBPS percentage for each IBPS task.
HUD may reduce the basic fee earned if HUD determines that PHA
performance of IBPS tasks is below the minimum acceptable quality level
(AQL). The basic fee earned is reduced by subtracting the disincentive
deduction for an IBPS task from the IBPS fee.
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BUDGET AUTHORITY. The maximum amount of funds available for
payment to the PHA for each HAP contract. Budget authority is
authorized and appropriated by the Congress. The amount of budget
authority for each HAP contract is listed on Exhibit C.
COVERED UNITS. Section 8 assisted units under HAP contracts
assigned to the PHA for contract administration under the ACC during the
ACC term. Covered units are listed on Exhibit B. (Covered units are
added by HUD notice to the PHA.)
DISINCENTIVE DEDUCTION. A deduction from the per unit per month
IBPS fee. For each IBPS task, the disincentive deduction equals the
maximum IBPS fee times the disincentive deduction percentage. HUD
deducts this amount for PHA performance of an IBPS task that fails to meet
the acceptable quality level. Exhibit A of the ACC specifies the
performance standard for assessing a disincentive deduction for
performance of an IBPS task. (During the term of the ACC, HUD may
amend the performance standard or the disincentive deduction percentage
by HUD notice to the PHA.)
DISINCENTIVE DEDUCTION PERCENTAGE. A percentage used to
calculate the amount of a disincentive deduction from the IBPS fee. The
disincentive deduction percentage for each IBPS task is specified in the
performance requirements summary (PRS).
EARNED BASIC FEE. The amount of the basic fee earned by the PHA per
unit per month (in an FMR area). The earned basic fee equals the sum of
the earned IBPS fees for the IBPS tasks.
EARNED IBPS FEE. The amount of the IBPS fee earned by the PHA per
unit per month. The earned IBPS fee equals the maximum IBPS fee minus
any disincentive deduction.
EARNED INCENTIVE FEE. The amount of an incentive fee earned by the
PHA.
FISCAL YEAR. The PHA fiscal year. Exhibit C states the last month and
day of the PHA fiscal year.
FMR. Fair Market Rent. HUD establishes an FMR by publication in the
Federal Register in accordance with Section 8.
FMR AREA. The area for which HUD has established an FMR.
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FUNDING INCREMENT. Each commitment of funding (budget authority)
by HUD to the PHA for a HAP contract under the ACC. The funding
increments are listed on Exhibit C.
HAP CONTRACT. A Section 8 Housing Assistance Payments Contract.
HUD. The United States Department of Housing and Urban
Development.
IBPS. Incentive-based Performance Standards.
IBPS FEE. The maximum fee per unit per month for performance of an
IBPS task listed in the PRS. The IBPS fee for an IBPS task equals the
maximum basic fee times the IBPS percentage.
IBPS PERCENTAGE. The percentage of the maximum basic fee for PHA
performance of each of the IBPS tasks. The IBPS percentage times the
maximum basic fee is the maximum IBPS fee per unit per month for each
IBPS task. The earned IBPS fee may be reduced by disincentive
deductions for PHA performance of an IBPS task that falls below the
acceptable quality level.
IBPS TASK. Any of the contract administration core tasks listed in the
performance requirements summary (PRS). HUD measures the PHA’s
performance of each IBPS task to determine the amount of the PHA’s
earned basic fee or earned incentive fee for each covered unit.
INCENTIVE BASED PERFORMANCE STANDARDS (IBPS): A
description of specific elements of each core task. HUD will measure the
PHA’s performance of each such element as the performance standard to
determine the amount of PHA’s earned administrative fees (including
earned basic fees and earned incentive fees).
INCENTIVE FEE. A per unit per month administrative fee in addition to
the basic fee. The incentive fee is paid for PHA performance of an IBPS
task that exceeds the acceptable quality level for the IBPS task. HUD
determines the amount of the incentive fees earned. The total of
incentive fees earned in each quarter is paid quarterly (at the end of the
quarter). The total of incentive fees earned for each month of the ACC
term may not exceed the amount of the incentive fee pool for the month.
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INCENTIVE FEE PERCENTAGE. The percentage of the incentive fee pool
for PHA performance of an IBPS task that exceeds the acceptable quality
level. Column E of the performance requirements summary (PRS) (see
Exhibit A) specifies the incentive fee percentage, and the performance
standard for awarding the incentive fee for performance of the task.
INCENTIVE FEE POOL. The maximum amount of incentive fees that
may be earned by the PHA for each month of the ACC term. (See fee
calculation procedure at § 4.8 of Exhibit A.)
MAXIMUM BASIC FEE. The amount of the maximum basic fee per unit
per month for each FMR area in the PHA service area. The amount of the
maximum basic fee for each FMR area in the service area (and for each
year of the ACC term) is specified in Exhibit E of the ACC.
MAXIMUM IBPS FEE. The maximum basic fee times the IBPS percentage
(before any disincentive deduction).
PERFORMANCE REQUIREMENTS SUMMARY (PRS). § 4.7 of Exhibit A
of the ACC. (HUD may amend the PRS during the term of the ACC by
HUD notice to the PHA.)
PHA. Public Housing Agency.
PORTFOLIO REENGINEERING. FHA-insured multifamily housing
mortgage and housing assistance restructuring of an eligible multifamily
project.
PROGRAM EXPENDITURES. Amounts which may be charged against
program receipts in accordance with the ACC and HUD requirements
(including housing assistance payments and administrative fees).
PROGRAM PROPERTY. Program receipts, including funds held by a
depository institution, and PHA rights or interests under a HAP contract
for covered units.
PROGRAM RECEIPTS. Amounts paid by HUD to the PHA under the
ACC, and any other amounts received by the PHA in connection with
administration of the Section 8 program under the ACC.
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PROJECT RESERVE. An unfunded account established by HUD for a
HAP contract from amounts by which the amount of budget authority
available for payment under the HAP contract during the owner’s fiscal
year as determined by HUD exceeds the amount actually approved and
paid by HUD. HUD may use this account as the source for additional
payments under the program.
PUBLIC HOUSING AGENCY (PHA). The agency that has entered the
ACC with HUD. Such agency is a “public housing agency” as defined in
Section 3 of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(6)).
SECTION 8. Section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f).
SERVICE AREA. The area where the PHA provides contract
administration services under the ACC. The PHA service area is
described in Exhibit D of the ACC.
STATEMENT OF WORK (SOW). The description of core contract
administration tasks to be performed by the PHA under the ACC (Section
3 of Exhibit A).
2
ACC
a
Purpose
(1)
This ACC is a contract between the PHA and HUD. The
ACC was awarded by HUD pursuant to a proposal submitted
in response to HUD’s published Request for Proposals for
PHAs to provide contract administration services for units
receiving project-based Section 8 housing assistance (64
Federal Register 27360 (5/19/99), amendment no. 1 (8/2/99)
and amendment no. 2 (11/15/99)) .
(2)
Under Section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f), HUD is authorized to enter into an annual
contributions contract with a PHA that enters a HAP contract
with an owner to pay housing assistance payments for
housing units occupied by eligible families, including a HAP
contract assigned to the PHA by HUD for contract
administration under the ACC. Under this ACC, the PHA will
provide contract administration services for dwelling units in
the service area receiving project-based assistance under
Section 8.
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b
Exhibits
This ACC includes the following exhibits:
c
Exhibit A:
PHA Contract Administration Responsibilities
Exhibit B:
Covered Units
Exhibit C:
Funding
Exhibit D:
Service Area
Exhibit E:
PHA Administrative Fees
HUD revision of ACC exhibits
(1)
(2)
(3)
d
HUD may amend Exhibit B:
•
To add covered units.
•
To withdraw covered units for which the HAP contract
has expired or been terminated.
•
To withdraw covered units in connection with portfolio
reengineering.
HUD may amend Exhibit C:
•
To add a funding increment, or
•
To remove a funding increment for which the HAP
contract has expired or been terminated
•
To remove a funding increment in connection with
portfolio reengineering.
HUD may amend Exhibit B or Exhibit C of the ACC by giving
the PHA written notice of the revised exhibit. The HUD
notice constitutes an amendment of the ACC.
ACC term
(1)
The PHA shall provide contract administration services for
the covered units during the ACC term.
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(2)
The initial term of the ACC shall be thirty-six calendar
months commencing on the first day of the month of HUD’s
first assignment to the PHA of existing HAP contracts for
covered units for contract administration pursuant to the
ACC. (The same ACC term shall apply for all covered units,
whether such covered units are included in the first HUD
assignment of covered units, or are added subsequently.)
(3)
HUD may unilaterally elect to renew the ACC for up to two
additional twelve month renewal terms after the initial term.
Each such renewal shall be at HUD’s sole discretion, and
shall be exercised by written notice to the PHA of HUD’s
election to renew. HUD shall give such renewal notice at
least three calendar months before the end of the expiring
term (the initial term and the first twelve month renewal term).
(4)
The PHA may unilaterally elect to terminate the ACC term at
the end of the last month of the initial ACC term, or at the
end of any month of the first or second twelve month
renewal term, if the PHA gives HUD written notice of the
PHA’s election to terminate the ACC term at least twelve
calendar months before termination.
PHA CONTRACT ADMINISTRATION SERVICES
a
Coverage
(1)
The PHA shall enter into or assume HAP contracts with
owners of covered units to make housing assistance
payments to the owners of such units during the HAP
contract term.
(2)
During the ACC term, the PHA shall provide contract
administration services for covered units in the service area.
(3)
HUD will assign to the PHA existing HAP contracts for
covered units. The PHA agrees to accept all such
assignments by HUD for the purpose of administering such
HAP contracts in accordance with the ACC during the ACC
term. Upon assignment by HUD, the PHA immediately and
automatically assumes, during the ACC term, the contractual
rights and responsibilities of HUD pursuant to such HAP
contracts for covered units in accordance with the ACC and
HUD requirements.
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b
PHA services
(1)
(2)
The PHA shall perform all PHA responsibilities under the
ACC, in accordance with applicable provisions of:
•
The United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) and other Federal laws. Including any
amendments or changes in the law.
•
HUD regulations and other requirements, including
any amendments or changes in HUD requirements.
•
The ACC.
•
The HUD-approved proposal submitted in response
to the HUD Request for Proposals, and any HUDapproved modifications of the proposal. (However, if
any provision of the proposal conflicts with the law,
the ACC or any HUD regulation or other requirement,
the law, ACC or HUD requirement will govern.)
The PHA shall perform all the following core tasks as
described in the Statement of Work.
•
Conduct management and occupancy reviews.
•
Adjust contract rents.
•
Process HAP contract terminations or expirations.
•
Pay monthly vouchers from Section 8 owners.
•
Respond to health and safety issues.
•
Submit Section 8 budgets, requisitions, revisions and
year-end statements.
•
Submit audits of the PHA’s financial condition.
•
Renew HAP contracts.
•
Report on PHA operating plans and progress.
•
Follow up on results of physical inspections of
projects with covered units.
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(3)
The PHA shall perform all core tasks in accordance with the
SOW core task descriptions.
(4)
The PHA shall require owners to comply with HUD
requirements for occupancy of covered units, including
requirements governing eligibility for assistance, resident
contribution to rent, and examinations and reexaminations of
family income.
(5)
The PHA shall determine the amount of housing assistance
payments to owners in accordance with the terms of the
HAP contracts and HUD requirements. The PHA shall pay
owners the amount of housing assistance payments due to
owners under such HAP contracts from the amount paid to
the PHA by HUD for this purpose.
(6)
The PHA shall take prompt and vigorous action, to HUD’s
satisfaction, and as required or directed by HUD, to enforce
owner compliance with the terms of HAP contracts for
covered units. Such actions include requiring actions by the
owner to cure a default, termination, or abatement or other
reduction of housing assistance payments, termination of
the HAP contract, or recovery of overpayments. However,
the PHA may not terminate a HAP contract without HUD’s
prior written consent.
FEES AND PAYMENTS
a
HUD payments
(1)
HUD will make payments to the PHA for covered units in
accordance with HUD requirements.
(2)
For each PHA fiscal year, HUD will pay the PHA the amount
approved by HUD to cover:
•
Housing assistance payments by the PHA to owners
of covered units.
•
PHA fees for contract administration of covered units.
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b
(3)
The amount approved and paid by HUD for housing
assistance payments shall be sufficient for timely payment
by the PHA to owners of the amount of housing assistance
payments due to the owners under HAP contracts for
covered units. If the PHA is unable to make timely payment
to owners because of HUD delay in paying the PHA the
amount sufficient for such payment by the PHA to the
owners (and such HUD delay is not caused by the PHA’s
action or failure to act), the PHA’s failure to make timely
payment to owners shall not be a default by the PHA under
the ACC.
(4)
The amount of the HUD payment may be reduced, as determined by HUD, by the amount of program receipts (such as
interest income) other than the HUD payment.
Fees
(1)
The PHA earns an administrative fee for each covered unit
under HAP contract on the first day of the month. The
monthly administrative fee is composed of the basic fee and
the incentive fee.
(2)
The amount of earned administrative fees is determined in
accordance with Exhibit A and Exhibit E.
(3)
Basic fees earned by the PHA shall be paid monthly.
Incentive fees earned by the PHA shall be paid quarterly.
Payment of administrative fees is subject to availability of
appropriated funds.
(4)
If HUD determines that the PHA has performed below the
minimum acceptable quality level in any month, HUD may
reduce the amount of the basic fee per unit per month by
subtracting the amount of the disincentive deductions
determined by HUD in accordance with Exhibit A.
(5)
If HUD determines that the PHA has performed above the
minimum acceptable quality level, HUD may award an
incentive fee per unit per month, in addition to the basic fee,
in the amount determined by HUD in accordance with Exhibit
A. The total of earned incentive fees for each month, as
determined by HUD, shall not exceed the amount of the
incentive fee pool for such month.
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(6)
HUD will not pay an administrative fee for any covered units
for which the HAP contract has expired or been terminated.
(7)
If HUD determines that the PHA has failed to comply with
any obligations under the ACC, HUD may reduce the
amount of any administrative fee as otherwise determined
by HUD in accordance with Exhibit A if HUD has given the
PHA reasonable notice of such failure, and reasonable
opportunity to cure such failure prior to such reduction. In
determining the length of such HUD notice and the extent or
nature of such opportunity to cure, HUD shall have
discretion to consider the circumstances of the case,
including such factors as prior failure or pattern of failure by
the PHA to comply with PHA contract administration
obligations under the ACC, and the seriousness of such
failures.
LIMIT ON PAYMENTS FOR FUNDING INCREMENT
The total amount of HUD payments to the PHA for any funding increment
over the increment term shall not exceed the amount of budget authority
for the funding increment.
6
REDUCTION OF AMOUNT PAYABLE BY HUD
a
If HUD determines that the PHA has committed any default under
the ACC, HUD may reduce to an amount determined by HUD:
(1)
The amount of the HUD payment to the PHA for any funding
increment.
(2)
The budget authority for any funding increment.
b
HUD shall give the PHA written notice of the reduction.
c
If HUD reduces the amount of the HUD payment below the
amount necessary to cover housing assistance payments to
owners of covered units, the PHA has no obligation to pay housing
assistance payments to owners that exceed the amount paid to the
PHA by HUD for this purpose.
d
The HUD notice may include a revision of the funding exhibit
(Exhibit C) that reduces the amount of budget authority for a
funding increment. The notice of a revised funding exhibit, or of
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revisions to the funding exhibit constitutes an amendment of the
ACC.
7
PROJECT RESERVE
HUD may establish and maintain a project reserve account for a HAP
contract administered by the PHA under the ACC. The amount in the
project reserve is determined by HUD. The project reserve may be used
by HUD to pay any portion of the payment approved by HUD for a fiscal
year.
8
9
BUDGET AND REQUISITION FOR PAYMENT
a
For each fiscal year, the PHA shall submit to HUD an estimate of
the HUD payments for the program and any supporting data
required by HUD. The budget estimate and supporting data shall
be submitted at such time and in such form as HUD may require,
and are subject to HUD approval and revision.
b
The PHA shall requisition periodic payments on account of each
annual HUD payment to the PHA. Each requisition shall be in the
form prescribed by HUD. Each requisition shall include certification
that housing assistance payments have only been paid to owners
in accordance with HAP contracts for covered units, and in
accordance with HUD requirements.
c
If HUD determines that payments by HUD to the PHA for a fiscal
year exceed the amount of the annual payment approved by HUD
in the budget for the fiscal year, the excess shall be applied as
determined by HUD. Such applications determined by HUD may
include, but are not limited to, application of the excess payment
against the amount of the annual payment for a subsequent fiscal
year. The PHA shall take any actions required by HUD respecting
the excess payment, and shall, upon demand by HUD, promptly
remit the excess payment to HUD.
FINANCIAL MANAGEMENT
a
Use of program receipts
(1)
The PHA shall use program receipts in compliance with the
U.S. Housing Act of 1937 and all HUD regulations and other
requirements.
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b.
(2)
The PHA may only use program receipts to pay program
expenditures, including administrative fees payable to the
PHA, and housing assistance payments payable to owners
for covered units.
(3)
Administrative fees earned by and paid to the PHA as
program expenditures in accordance with this ACC are no
longer subject to HUD requirements governing use of
program receipts. The PHA may use or distribute any such
earned administrative fee income, including basic fees and
incentive fees, for any purpose.
(4)
If required by HUD, program receipts in excess of current
needs shall be promptly remitted to HUD or shall be invested
in accordance with HUD requirements.
(5)
Interest on the investment of program receipts constitutes
program receipts.
Depository
(1)
Unless otherwise required or permitted by HUD, all program
receipts shall be promptly deposited with a federally insured
financial institution selected as depository institution by the
PHA in accordance with HUD requirements.
(2)
The PHA shall enter an agreement with the depository
institution in the form required by HUD.
(3)
The PHA may only withdraw deposited program receipts for
use in connection with the program in accordance with HUD
requirements, including payment of housing assistance
payments to owners and payment of administrative fees to
the PHA.
(4)
If HUD determines that the PHA has committed any default
under the ACC, and has given the PHA notice of such
determination, HUD may freeze deposited program receipts
held by the depository institution, and may withdraw
deposited funds. The PHA agreement with the depository
institution shall provide that if required under a written freeze
notice from HUD to the depository:
•
The depository institution shall not permit any
withdrawal of deposited funds by the PHA unless
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withdrawals by the PHA are expressly authorized by
written notice from HUD to the depository institution.
•
(5)
10
The depository institution shall permit withdrawals of
deposited funds by HUD.
Unless approved by HUD, the PHA may not deposit under
the depository agreement monies received or held by the
PHA in connection with any contract between the PHA and
HUD.
FIDELITY BOND COVERAGE
The PHA shall carry adequate fidelity bond coverage, as required by
HUD, to compensate the PHA and HUD for any theft, fraud or other loss
of program property resulting from action or non-action by PHA officers or
employees or other individuals with administrative functions or
responsibility for contract administration under the ACC.
11
MANAGEMENT REQUIREMENTS
a
The PHA shall (without any compensation or reimbursement in
addition to administrative fees in accordance with § 4.b of the ACC)
perform all PHA obligations under the ACC, and provide all
services, materials, equipment, supplies, facilities and professional
and technical personnel, needed to carry out all PHA obligations
under the ACC, in accordance with sound management practices,
Federal statutes, HUD regulations and requirements and the ACC.
b
The PHA shall:
(1)
Maintain telephone service during normal and customary
business hours.
(2)
Design and implement procedures and systems sufficient to
fulfill all PHA obligations under the ACC.
(3)
Take necessary actions to maintain good relations with
owners, residents and their representatives, neighborhood
groups, and local government agencies.
(4)
Respond fully and promptly to inquiries from assisted
residents, and refer inquiries from Congress or other
governmental entities to HUD.
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PROGRAM RECORDS
a
The PHA shall maintain complete and accurate accounts and other
records related to operations under the ACC. The records shall be
maintained in the form and manner required by HUD, including
requirements governing computerized or electronic forms of recordkeeping. The accounts and records shall be maintained in a form
and manner that permits a speedy and effective audit.
b
The PHA shall maintain complete and accurate accounts and
records for each HAP contract.
c
The PHA shall furnish HUD such accounts, records, reports,
documents and information at such times, in such form and
manner, and accompanied by such supporting data, as required by
HUD, including electronic transmission of data as required by HUD.
d
The PHA shall furnish HUD with such reports and information as
may be required by HUD to support HUD data systems.
e
HUD and the Comptroller General of the United States, or their
duly authorized representatives, shall have full and free access to
all PHA offices and facilities, and to all accounts and other records
of the PHA that are relevant to PHA operations under the ACC,
including the right to examine or audit the records and to make
copies. The PHA shall provide any information or assistance
needed to access the records.
f
The PHA shall keep accounts and other records for the period
required by HUD.
g
HUD may review and audit PHA performance of its responsibilities
under the ACC. The PHA shall comply with Federal audit
requirements. The PHA shall engage an independent public
accountant to conduct audits that are required by HUD. The PHA
shall cooperate with HUD to promptly resolve all audit findings,
including audit findings by the HUD Inspector General or the
General Accounting Office.
DEFAULT BY PHA
a
Definition of default
Occurrence of any of the following events is a default by the PHA in
performance of its obligations under the ACC:
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(1)
(2)
b
The PHA has failed:
•
To comply with PHA obligations under the ACC, or
•
To comply with PHA obligations under a HAP contract
with an owner, or
•
To take appropriate action, to HUD's satisfaction or
as required or directed by HUD, for enforcement of
the PHA's rights under a HAP contract.
The PHA has made any misrepresentation to HUD of any
material fact.
Termination of ACC because of PHA default
(1)
HUD may terminate the ACC at any time in whole or in part
if:
•
HUD determines that the PHA has committed any
default or pattern of default under the ACC, and
•
HUD has given the PHA reasonable notice of the
default to the PHA, and reasonable opportunity to
cure the default prior to termination. However, the
PHA shall comply with HUD instructions on remedial
actions necessary to cure the default.
(2)
In determining the length of such HUD notice and the extent
or nature of such opportunity to cure, HUD shall have
discretion to consider the circumstances of the case,
including such factors as prior failure or pattern of failure by
the PHA to comply with PHA contract administration
obligations under the ACC, and the seriousness of such
failures. If HUD determines that urgent or other exigent
circumstances require immediate termination of the ACC,
HUD may terminate the ACC at any time, without allowing
any opportunity to cure. Such circumstances include
diversion or misuse of program receipts, PHA
misrepresentation to HUD of any material facts, or failures of
program administration that affect or may affect the welfare
of assisted families.
(3)
If HUD elects to terminate the ACC, HUD shall terminate the
ACC by written notice to the PHA, which shall state:
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c
The reason for termination.
•
The date of termination.
Other remedies
(1)
(2)
14
•
HUD may take title or possession to any or all program
property:
•
Upon occurrence of a default by the PHA, or
•
Upon termination of the ACC in whole or in part, or
•
Upon expiration of the ACC term.
HUD’s exercise or non-exercise of any right or remedy for
PHA default under the ACC is not a waiver of HUD's right to
exercise that or any other right or remedy at any time.
CONFLICT OF INTEREST
a
Neither the PHA, nor any PHA contractor, subcontractor or agent
for operations under the ACC, nor any other entity or individual with
administrative functions or responsibility concerning contract
administration under the ACC, may enter into any contract,
subcontract, or other arrangement in connection with contract
administration under the ACC in which any covered individual or
entity has any direct or indirect interest (including the interest of any
immediate family member), while such person is a covered
individual or entity or during one year thereafter.
b
“Immediate family member” means the spouse, parent, child,
grandparent, grandchild, sister, or brother of any covered
individual.
c
“Covered individual or entity” means an individual or entity that is a
member of any of the following classes:
(1)
A member, officer or director of the PHA, or other PHA
official with administrative functions or responsibility
concerning contract administration under the ACC.
(2)
If the PHA is an instrumentality of a governmental body:
•
A member, officer or director of such governmental
body.
Annual Contributions Contract: Project-based Section 8 Contract Administration
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•
A member, officer or director of any entity that holds a
direct or indirect interest in the instrumentality entity.
(3)
An employee of the PHA.
(4)
A PHA contractor, subcontractor or agent with administrative
functions or responsibility concerning contract administration
under the ACC, or any principal or other interested party of
such contractor, subcontractor or agent.
(5)
An individual who has administrative functions or
responsibility concerning contract administration under the
ACC, including an employee of a PHA contractor,
subcontractor or agent.
(6)
A public official, member of a governing body, or State or
local legislator, who exercises functions or responsibilities
concerning contract administration under the ACC.
d
The PHA shall require any covered individual or entity to disclose
his, her or its interest or prospective interest in any contract,
subcontract or other arrangement in connection with contract
administration under the ACC to the PHA and HUD.
e
During the term of the ACC, the PHA shall not own or otherwise
possess any direct or indirect interest in any covered unit (including
a unit owned or possessed, in whole or in part, by an entity
substantially controlled by the PHA), and shall not claim or receive
any administrative fee for contract administration of a unit in which
the PHA has any such interest.
f
Notwithstanding paragraph e, if the PHA is a State, or an agency or
instrumentality of a State (not including a municipality, county or
other agency of local government), and provides or has provided
financing for development, repair or improvement of covered units,
and holds a mortgage of the real property to secure such financing:
(1)
The existence of such mortgage or interest shall not be
considered a conflict of interest under paragraph e,
(provided that the PHA has not obtained any other
ownership interest in the property, by exercise of its
remedies as mortgagee or otherwise), and in such case,
paragraph e shall not bar the PHA from claiming or receiving
an administrative fee for contract administration of such
covered units.
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(2)
15
The PHA shall fully disclose such mortgage or interest to
HUD, including any defaults by the mortgagee or borrower
under such mortgage, and any actions considered or taken
by the PHA to enforce the mortgage or the terms of such
financing against the owner or the real property. HUD may
require the PHA to take measures or actions necessary to
assure that the PHA’s interest as lender or mortgagee does
not prejudice the PHA’s full and vigorous performance of
contract administration services for the covered units in
accordance with the ACC, or may amend Exhibit B and C of
the ACC to withdraw such covered units, and the funding for
such units, from the scope of the ACC.
g
HUD may waive the conflict of interest requirements for good
cause. Any covered individual or entity for whom a waiver is
granted may not execute any contract administration functions or
responsibility concerning a HAP contract under which such
individual is or may be assisted, or with respect to a HAP contract
in which such individual or entity is a party or has any interest.
h
No member of or delegate to the Congress of the United States of
America or resident commissioner shall be admitted to any share
or part of the ACC or to any benefits which may arise from it.
EQUAL OPPORTUNITY
a
The PHA shall comply with all equal opportunity requirements
imposed by Federal law, including applicable requirements under:
(1)
The Fair Housing Act, 42 U.S.C. 3601-3619 (implementing
regulations at 24 CFR parts 100 et seq.).
(2)
Title VI of the Civil rights Act of 1964, 42 U.S.C. 2000d
(implementing regulations at 24 CFR part 1).
(3)
The Age Discrimination Act of 1975, 42 U.S.C. 6101-6107
(implementing regulations at 24 CFR part 146).
(4)
Executive Order 11063, Equal Opportunity in Housing
(1962), as amended, Executive Order 12259, 46 FR 1253
(1980), as amended, Executive Order 12892, 59 FR 2939
(1994) (implementing regulations at 24 CFR part 107).
(5)
Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794
(implementing regulations at 24 CFR part 8).
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(6)
16
Title II of the Americans with Disabilities Act, 42 U.S.C.
12101 et seq.
b
The PHA shall submit a signed certification to HUD that the PHA
shall carry out its responsibilities under the ACC in accordance with
the Fair Housing Act, Title VI of the Civil Rights Act of 1964, the
Age Discrimination Act of 1975, Executive Order 11063, Section
504 of the Rehabilitation Act of 1973, and Title II of the Americans
with Disabilities Act.
c
The PHA shall cooperate with HUD in the conducting of
compliance reviews and complaint investigations pursuant to
applicable civil rights statutes, Executive Orders, and related rules
and regulations.
COMMUNICATION WITH HUD
The CA shall communicate with HUD through the official or officials
designated by HUD.
17
EXCLUSION OF THIRD PARTY RIGHTS
a
A family that is eligible for housing assistance under the ACC is not
a party to or a third party beneficiary of the ACC.
b
Nothing in the ACC shall be construed as creating any right of any
third party to enforce any provision of the ACC, or to assert any
claim against HUD or the PHA.
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PUBLIC HOUSING AGENCY
_______________________________________________________
Name of PHA (print)
_______________________________________________________
Signature of authorized representative
_______________________________________________________
Name and official title (print)
Date
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
______________________________________________________
Signature of authorized representative
______________________________________________________
Name and official title (print)
______________________
Date
Annual Contributions Contract: Project-based Section 8 Contract Administration
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EXHIBIT A
PUBLIC HOUSING AGENCY RESPONSIBILITIES
CONTENTS OF EXHIBIT A
1. INTRODUCTION _______________________________________________3
2. PUBLIC HOUSING AGENCY _____________________________________4
2.1. Overview of Public Housing Agency responsibilities______________4
2.2. Qualification as Public Housing Agency ________________________4
2.3. Instrumentality Entity eligibility _______________________________5
3. STATEMENT OF WORK _________________________________________6
3.1. Overview __________________________________________________6
3.1.1. Performance-based Service Contracting __________________________ 6
3.1.2. Elements of core task descriptions ______________________________ 6
3.1.3. HUD regulations and requirements ______________________________ 7
3.1.4. Core tasks ___________________________________________________ 7
3.2. Management and occupancy reviews __________________________8
3.3. Rental adjustments ________________________________________10
3.4. Opt-out and HAP contract termination_________________________14
3.5. Monthly vouchers _________________________________________15
3.6. Health and safety issues and community/resident concerns ______18
3.7. Section 8 budgets, requisitions, revisions and year-end statements 20
3.8. Public Housing Agency audit ________________________________21
3.9. Renewals of expiring Section 8 HAP contracts _________________23
ACC
EXHIBIT A – PAGE 1
3.10. General reporting requirements _____________________________24
3.11. Physical inspection _______________________________________26
4. PHA ADMINISTRATIVE FEE_____________________________________28
4.1. Definitions _______________________________________________28
4.2. Evaluation of PHA performance ______________________________31
4.3. Incentive fee ______________________________________________31
4.4. Fee payment ______________________________________________32
4.4.1. Payment of basic fee _________________________________________ 32
4.4.2. Payment of incentive fee ______________________________________ 33
4.5. Availability of funds ________________________________________33
4.6. Use of fee income _________________________________________33
4.7. Performance Requirements Summary (PRS) ___________________33
4.8. How to calculate earned administrative fees ___________________46
5. ACC TERM __________________________________________________57
6. EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE_______________57
7. DATA SYSTEMS ______________________________________________58
7.1. Federal Requirements ______________________________________58
7.2. Communication with owners ________________________________58
7.3. Communication with HUD ___________________________________58
7.4. Fund transfer and payment__________________________________59
8. MANAGEMENT CAPACITY AND QUALITY CONTROL PLAN __________59
ACC
EXHIBIT A – PAGE 2
1. INTRODUCTION
The Public Housing Agency (PHA) has entered this Annual Contributions Contract
(ACC) with HUD. Under the ACC, the PHA will provide contract administration
services for project-based Housing Assistance Payments Contracts (HAP
contracts) entered under Section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f) (Section 8).
The ACC does not apply to contract administration of Section 8 projects assisted
under the Section 8 moderate rehabilitation program (24 CFR part 882) (including
the Section 8 moderate rehabilitation single room occupancy program), or to
contract administration of projects assisted under the Section 8 project-based
voucher program or project-based certificate program (24 CFR part 983).
During the ACC term, the PHA will oversee HAP contracts for Section 8 projects in
accordance with HUD regulations and requirements. The PHA’s responsibilities
are governed by the ACC between HUD and the PHA. HUD will assign HAP
contracts for Section 8 projects to the PHA for contract administration during the
term of the ACC. Upon HUD assignment of HAP contracts with the owners of
Section 8 projects, the PHA immediately and automatically assumes, during the
ACC term, the obligations of HUD under the HAP contracts. The PHA will monitor
and enforce the compliance of each Section 8 owner with the terms of the HAP
contract and HUD regulations and requirements.
HUD seeks to achieve three programmatic and three administrative objectives.
Programmatic objectives:
Calculate and pay Section 8 rental subsidies correctly.
Administer project-based Section 8 HAP contracts consistently.
Enforce owner obligations to provide decent housing for eligible
families.
Administrative objectives:
Execute an ACC only with a PHA that has the qualifications and
expertise to oversee and manage affordable housing, and that has the
capacity to perform the required contract administration services,
including necessary personnel and other resources.
Get the best value for dollars spent for PHA services.
Encourage the development of joint ventures and or partnerships for
contract administration services to obtain the benefit of the best
practices of both public and private sectors.
ACC
EXHIBIT A – PAGE 3
2. PUBLIC HOUSING AGENCY
2.1. Overview of Public Housing Agency responsibilities
The PHA must administer Section 8 HAP contracts in accordance with the ACC,
Federal law, and HUD regulations and requirements, both current and as
amended in the future. The ACC with the PHA specifies the area where the PHA
is required to provide contract administration services (service area).
The ACC specifies the Section 8 assisted units under HAP contracts that HUD
assigns to the PHA for contract administration under the ACC during the ACC term
(covered units). From time to time during the ACC term, HUD may add or delete
covered units for contract administration under the ACC. Each fiscal year, the
PHA will request funds from HUD to cover PHA administrative fees and housing
assistance payments to owners of covered units.
The Statement of Work (SOW) (Section 3 below) details core functions (tasks)
that the PHA must perform.
The major tasks of the PHA include, but are not limited to the following:
Monitor compliance of Section 8 project owners with their obligation to
provide decent, safe, and sanitary housing to assisted residents.
Pay Section 8 project owners accurately and timely.
Submit required documents accurately and timely to HUD (or as
required by HUD).
Comply with HUD regulations and requirements, both current and as
amended in the future, governing administration of Section 8 HAP
contracts.
2.2. Qualification as Public Housing Agency
By law, HUD may only enter into an ACC with a legal entity that qualifies as a
“public housing agency” (PHA) as defined in the United States Housing Act of
1937 (42 U.S.C. 1437 et seq.). However, that requirement does not preclude joint
ventures or other partnerships between a PHA and other public or private entities
to carry out the PHA’s contract administration responsibilities under the ACC
between the PHA and HUD.
Under the law, a public housing agency is defined as a:
“…State, county, municipality, or other governmental entity or public body
(or agency or instrumentality thereof) which is authorized to engage in or
ACC
EXHIBIT A – PAGE 4
assist in the development or operation of low-income housing.” (42 U.S.C.
1437a(b)(6)).
To qualify as a PHA that may enter into a Section 8 ACC with HUD, the legal
entity must be one of the following:
A general or special purpose governmental entity: Such governmental
entities include a State, municipality, housing authority, or
governmental public benefit corporation.
A multi-state, interstate or regional governmental entity.
An instrumentality entity: Such instrumentality entity must act as an
instrumentality of a parent governmental entity, or multiple parent
governmental entities. The instrumentality entity may be a for-profit or
not-for-profit entity.
The entity that has entered the ACC with HUD affirms and certifies that it is a
Public Housing Agency (PHA) as required by Federal law, and that it has
jurisdiction and authority to carry out Section 8 contract administration
services in the agreed service area in accordance with the ACC.
2.3. Instrumentality Entity eligibility
If the PHA has qualified as an “instrumentality entity”, the relationship between an
instrumentality entity and a governmental entity (“parent entity”) must include all of
the following characteristics:
The parent entity must have the right to approve the corporate charter or
other organic documents of the instrumentality entity, including the right to
approve any amendments.
The parent entity must have the right to control, direct and authorize the
execution of the ACC between HUD and the instrumentality entity.
The parent entity must have the right to directly or indirectly control operation
of the instrumentality entity.
The parent entity must have the right that upon dissolution or termination of
the instrumentality entity, title to all real or personal property held by the
instrumentality entity must be transferred to the parent entity or an entity
designated by the parent entity.
The charter or other organic documents of the instrumentality entity (e.g.,
certificate of incorporation, partnership agreement or certificate) must provide that
the instrumentality entity is authorized to “engage in or assist in the development or
operation of low-income housing.”
ACC
EXHIBIT A – PAGE 5
Governmental parent entities may partner with private for-profit or non-profit
entities that hold an interest, directly or indirectly, in an instrumentality entity so
long as such instrumentality entity is otherwise in compliance with the above stated
requirements for eligibility of an instrumentality entity. Private entities may contract
directly with an instrumentality entity.
3. STATEMENT OF WORK
3.1. Overview
3.1.1. Performance-based Service Contracting
For work performed under the ACC, HUD has used Performance-based Service
Contracting (PBSC). PBSC is based on the development of a performance work
statement, which defines the work in measurable, mission-related terms with
established performance standards and review methods to assure quality
performance of the work. PBSC assigns incentives to reward performance that
exceeds the minimally acceptable and assesses disincentives for unsatisfactory
performance.
The PHA must complete all tasks described in Exhibit A of the ACC, including both
requirements specifically designated as “incentive-based performance standards”
and all other “requirements.”
PHA failure to complete the tasks or comply with other PHA obligations under the
ACC will constitute a default under the ACC. HUD may terminate the ACC at any
time in whole or in part if HUD determines that the PHA has committed any default
under the ACC.
3.1.2. Elements of core task descriptions
The description of each core task contains the following elements:
Outcome: The required result of the task.
Requirements: A general description of specific tasks the PHA must
perform.
NOTE: The PHA must perform each task in accordance with all
relevant HUD regulations and other requirements in effect
during the term of the ACC. The ACC does not set forth the
details of such regulations and requirements.
Reference: Current HUD regulations and other HUD requirements related to
each task.
ACC
EXHIBIT A – PAGE 6
Incentive-based Performance Standards (IBPS): A description of specific
elements of each core task. HUD will measure the PHA’s performance of
each such element as the performance standard to determine the PHA’s
earned administrative fees (including earned basic fees and earned incentive
fees).
Quality Assurance (QA): A listing of the methods and resources HUD will
use to verify the accuracy of the PHA’s reported performance and
accomplishments. HUD may use other methods that it deems appropriate to
assure quality.
3.1.3. HUD regulations and requirements
All references mentioned in the description of the tasks are generally available on
HUD’s website (http://www.hudclips.org/cgi/index.cgi.). Interested parties may
order copies of HUD handbooks and other directives through the HUD website, or
through the HUD Multifamily Clearinghouse at 1-800-685-8470. The regulations
and directives listed may be updated from time to time.
HUD does not represent that the references listed in the ACC, or on the HUD
website are a complete listing of current relevant HUD regulations and
requirements. In addition, HUD regulations and other requirements may change
from time to time during the term of the ACC.
HUD’s codified regulations are issued as Title 24 of the Code of Federal
Regulations (CFR). Revisions or additions to HUD regulations are initially
published in the Federal Register. HUD may also publish Federal Register
notices. In addition to publication in the Federal Register and the CFR, HUD
issues additional program requirements as HUD “directives”, including HUD
notices, handbooks and forms.
The PHA must carry out the core tasks described in the Statement of Work (ACC
Exhibit A,§ 3), as well as other responsibilities related to contract administration
under the ACC, in accordance with all HUD regulations and requirements in effect
from time to time, as well as other responsibilities related to contract administration
under the ACC.
3.1.4. Core tasks
This section describes ten core tasks that the PHA must perform:
1. Conduct management and occupancy reviews.
2. Adjust contract rents.
3. Process HAP contract terminations or expirations.
ACC
EXHIBIT A – PAGE 7
4. Pay monthly vouchers from Section 8 owners.
5. Respond to health and safety issues.
6. Submit Section 8 budgets, requisitions, revisions and year-end statements.
7. Submit audits of the PHA’s financial condition.
8. Renew HAP contracts.
9. Report on PHA operating plans and progress.
10. Follow up on results of physical inspections of Section 8 projects.
3.2. Management and occupancy reviews
The PHA must conduct an on-site management and occupancy review of each
Section 8 project, no less than annually. (Some projects may have multiple HAP
contracts.) The review must be a comprehensive assessment of the owner’s
procedures for directing and overseeing project operations, and the adequacy of
the procedures for carrying out day to day, front-line activities. Some examples of
the areas that the PHA must audit are: maintenance, security, leasing, occupancy,
certification and recertification of family income, and determination of the family
payments, financial management, Management Improvement and Operating
(MIO) Plans, and general maintenance practices. The results of the on-site review
must provide adequate documentation to support any enforcement actions
proposed against the owner by the PHA or HUD.
Outcome: Identify and resolve areas of noncompliance with HUD regulations
and other requirements.
Requirements:
Schedule and conduct annual reviews of each project, using form HUD-9834
or other appropriate documentation.
Evaluate the owner’s operating policies and procedures following guidance in
the appropriate HUD directives.
Verify compliance with HUD regulations and requirements regarding
occupancy issues (e.g., resident eligibility and selection, examination and
reexamination of family income and assets, household characteristics), and
verify that correct documentation is contained in each resident file to support
claims for payment under the HAP contract. Use the following resident file
random sampling:
ACC
EXHIBIT A – PAGE 8
Number of Units
Minimum File Sample
100 or fewer
5 files plus 1 for each 10 units over 50
101-600
10 files plus 1 for each 50 units or part of 50 over 100
601-2000
20 files plus 1 for each 100 units or part of 100 over
600
over 2,000
34 files plus 1 for each 200 units or part of 200 over
2,200
If the PHA’s review of the sample indicates a problem, the PHA must require
the owner to conduct a 100% review of the files and report the results of the
review to the PHA. The PHA must test the review done by the owner to
determine its reliability and accuracy.
Verify owner compliance with civil rights regulations, including Title VI, Title
VIII, the Americans with Disabilities Act, and Section 504 of the Rehabilitation
Act of 1973.
Notify the jurisdictional HUD office by close of next business day of any
potential fraud or potential violations of law identified during the PHA review.
Prepare and submit to the owner and jurisdictional HUD office a written
report, on form HUD-9834, or other appropriate HUD-required documents,
within 30 days of the PHA review, outlining any findings and
recommendations for corrective action.
Monitor implementation of corrective action. Notify jurisdictional HUD office
within one business day when enforcement action is required.
Enter required information into HUD data systems.
References:
HUD Handbook 4350.1
HUD Handbook 4350.3
Incentive-based Performance Standards
ACC
EXHIBIT A – PAGE 9
1. The PHA must conduct annual Management and Occupancy Reviews in
accordance with the PHA submitted and HUD approved workplan according
to HUD requirements, document corrective actions taken against Section 8
project owners or families, and monitor implementation of necessary
corrective action.
2. The PHA review must document on the appropriate form compliance by
Section 8 owners with civil rights regulations, including Title VI, Title VIII, the
Americans with Disabilities Act, and Section 504 of the Rehabilitation Act of
1973 and forward to the owner and the appropriate jurisdictional HUD office
within 30 days.
Quality Assurance:
On-Site Reviews
Data Systems Reports
3.3. Rental adjustments
Contract rent under each Section 8 HAP contract must be adjusted during the HAP
contract term in accordance with the HAP contract and HUD requirements.
The PHA must process contract rent adjustments correctly.
If applicable, the PHA must analyze adjustments of the owner utility allowance
schedule.
Outcome: Contract rent adjustments are timely and correct.
Requirements:
A. Budget-based adjustments
Where applicable, the budget-based rent adjustment method requires a Section 8
owner to submit an operating budget and supporting documentation for PHA
review. The rent adjustment is subject to HUD-approval.
The PHA must determine budget-based adjustments of contract rent by
performing the following tasks:
ACC
EXHIBIT A – PAGE 10
Analyze the project’s operating budget and supporting documentation for a
rent adjustment to determine reasonableness according to guidance in HUD
Handbook 4350.1.
Document contract rent increases on a rent schedule (Form HUD-92458)
Analyze adjustments of the owner utility allowance schedule, if applicable.
If the HAP contract requires the owner to maintain a reserve for replacement,
analyze adjustment to the monthly reserve for replacement deposit as
required and recommend action to HUD.
Recommend approval or disapproval to HUD. HUD must notify PHA of the
decision and the PHA must provide written notification to the owner.
Verify accurate, timely completion and submission of the adjusted rent
schedule by the owner.
Enter data into the appropriate HUD data system within five business days
from completion of action.
B. Annual Adjustment Factor (AAF)
This rent adjustment method generally requires the PHA to apply the AAF to
current contract rents. AAFs are published annually in the Federal Register.
The PHA must perform the following tasks:
Determine the amount of annual adjustments in accordance with HUD
requirements.
Analyze adjustments of the owner utility allowance schedule, if applicable.
If the HAP contract requires the owner to maintain a reserve for replacement,
analyze adjustment to the reserve for replacement, and recommend action to
HUD.
Approve or disapprove the amount of rent adjustment and provide written
notification to the owner.
Validate comparability study if submitted by the owner to support a rent
adjustment request.
Verify accurate, timely completion and submission of adjusted rent schedule
by the owner.
Enter data into the appropriate HUD system within five business days from
completion of action.
ACC
EXHIBIT A – PAGE 11
C. Special adjustments
For HAP contracts which provide for AAF-adjusted rents, the Section 8 owner may
request a special adjustment for cost increases generally applicable to housing in
the locality, such as increases in cost items such as insurance, taxes or utility
rates. The appropriate jurisdictional HUD office must approve or deny all special
adjustments within 30 days of receipt of a properly documented request from the
PHA.
The PHA must process the owner’s request for a special rent adjustment to
determine if the special adjustment should be approved by HUD. To accomplish
this, the PHA must perform the following tasks:
Analyze a special adjustment request from the owner.
Recommend action to the appropriate jurisdictional HUD office.
Based on notification from HUD, notify the owner of rent adjustment approval
or disapproval.
Verify accurate, timely completion and submission of an adjusted rent
schedule by the owner.
Enter data into the appropriate HUD data system within 5 business days from
completion of action.
D. Rent appeals
A Section 8 owner may appeal the PHA rent adjustment decision. The first level of
appeal is to the PHA; the second level of appeal is to the appropriate jurisdictional
HUD office. The PHA must review owner appeals.
The PHA must perform the following tasks:
First level appeal
Analyze the owner’s rent appeal request.
Provide the owner with written notice of PHA decision and justification within
30 business days of receipt of the owner’s request.
If the appeal is approved:
Verify accurate, timely completion and submission by the owner of the
adjusted rent schedule.
Enter data into the appropriate HUD data system within 5 business days after
completion of action.
ACC
EXHIBIT A – PAGE 12
If the appeal is denied:
Notify the owner of opportunity for second level appeal with notice of PHA
decision and justification.
Second level appeal
If the appeal is approved by HUD:
Receive approval from jurisdictional HUD office within 30 days after request
for second level appeal
Verify accurate, timely completion and submission of adjusted rent schedule
by the owner.
Enter data into the appropriate HUD data system.
References:
HUD Handbook 4350.1
Notice: H-98-34
Notice: H-98-3
Notice: H-98-27
Housing Notices H-99-08, H-99-13, H-99-15
Incentive-based Performance Standards
3. PHA completes processing of owner’s request for rent adjustment, and all
PHA approved rent adjustments are executed and finalized within 30 days of
receipt of owner’s request for a budget-based rent adjustment or on the
anniversary date of the HAP contract for an AAF-based rent adjustment.
Quality Assurance:
On-Site Reviews
Data Systems Reports
ACC
EXHIBIT A – PAGE 13
3.4. Opt-out and HAP contract termination
A Section 8 HAP contract may terminate because:
The HAP contract term expires and the owner chooses not to renew the
expiring contract (opt-out); or
The HAP contract is terminated by the PHA for owner default (after HUD
approves the termination).
When a Section 8 HAP contract will terminate, the PHA must notify HUD, and
must work with HUD to obtain tenant-based voucher assistance for eligible
residents. The PHA must coordinate efforts with the jurisdictional HUD office to
identify a PHA to administer the tenant-based assistance.
Outcome:
Provide ongoing rental assistance to eligible residents in
occupancy at the time of the opt-out.
Requirements:
A. Notification requirements
The PHA must:
Inform the jurisdictional HUD office by close of next business day after notice
by the owner that the owner has elected to opt-out of the HAP contract.
Inform the jurisdictional HUD office of the PHA’s recommendation to
terminate a HAP contract because of owner default.
Verify that the owner has complied with the HAP contract and current law on
opt-outs.
B. PHA actions when HAP contract terminates
The PHA must:
Obtain resident payment and family unit size data from the owner.
Provide resident payment (family income and total tenant payment) and
family unit size data (family size and composition, and size of Section 8 unit
currently occupied by family) to jurisdictional HUD office within 3 business
days after receipt of such information from the owner, and at least 90 days
before HAP contract termination, for the purpose of obtaining Section 8
vouchers for residents.
Coordinate efforts with the jurisdictional HUD to identify a PHA to administer
tenant-based voucher assistance for residents.
ACC
EXHIBIT A – PAGE 14
Help residents who must move from the project arranging to receive tenantbased voucher assistance from the PHA that will administer such assistance.
References:
Notice: H-98-34
Housing Notices H-99-08, H-99-13
Incentive-based Performance Standards
4. PHA notifies jurisdictional HUD office, by close of next business day after
notice by owner, that the owner has elected to opt-out.
5. PHA provides complete resident data to jurisdictional HUD office at least 90
days before HAP contract expiration.
Quality Assurance:
On-Site Reviews
Data Systems Reports
3.5. Monthly vouchers
The “Automation Rule” (24 CFR Section 108, Part 208 - Electronic Transmission of
Required Data for Certification and Recertification and Subsidy Billing Procedures
for Multifamily Subsidized Projects) requires Section 8 project owners to request
housing assistance payments by vouchers submitted monthly through the Tenant
Rental Assistance Certification System (TRACS). Vouchers are due the tenth day
of the month preceding the month for which the owner is requesting payment. A
PHA may not pay owners until owner vouchers are received and reviewed for
accuracy.
Outcome:
Payments of Section 8 vouchers and claims are only authorized
and paid for eligible covered units. Payments are made to owners
by the first day of every month.
Requirements:
A.
ACC
Verify and certify accuracy of monthly Section 8 vouchers (forms HUD52670 & HUD-52670-A)
EXHIBIT A – PAGE 15
The PHA must verify and provide written documentation certifying the accuracy of
owner payment requests by the last day of each month before the month when
payment is due to the owner in accordance with the HAP contract. The PHA
disburses housing assistance payments to the owner in response to the owner’s
payment request as verified by the PHA. To accomplish this task, the PHA must:
Monitor owner follow-up efforts on discrepancies identified as a result of any
income matching initiatives. HUD will provide discrepancy reports to the
PHA.
Monitor compliance by owners with requirements for entry of all resident
certification and recertification data in TRACS.
Verify voucher submissions by owner through the TRACS system by the
tenth day of the month preceding the month for which the owner is requesting
payment.
Verify through TRACS that the amount of the housing assistance payment
paid on behalf of each resident family is accurate.
Verify that all recertifications are completed by the owner in a timely manner
and entered into TRACS.
Verify that the owner’s payment request does not include any covered units
for which Section 8 assistance has been abated.
Analyze required adjustments prior month’s vouchers to determine accuracy
and validity.
Determine if authorized rent or utility allowance adjustments have been
implemented timely and accurately.
Verify pre-approval of Section 8 Special Claims (see paragraph B of this
section).
Notify the owner, in writing, of any corrections required and track corrections.
Verify that owners are complying with current HUD rules and other
requirements.
B.
Verify and authorize payment only on valid Section 8 Special Claims for
unpaid rent, resident damages or vacancy loss.
A Section 8 project owner may claim reimbursement from the PHA --to the extent
provided in the HAP contract -- for unpaid rent, resident damages, and vacancy
losses on covered units. Eligible claims must be pre-approved by the PHA before
being submitted with owner’s monthly voucher. The PHA must:
ACC
EXHIBIT A – PAGE 16
Analyze, verify and approve or disapprove owner claims in accordance with
HUD regulations and other requirements (including program requirements in
HUD directives such as handbooks, notices or forms); and using TRACS and
information provided by the owner.
Enter data into a spreadsheet program. for monitoring PHA payments. (The
program must comply with HUD standards and requirements.)
Return the HUD-approved claim to the owner for owner submission with the
next owner voucher.
C.
Disburse Section 8 payments to owners
After the PHA has approved the owner’s Section 8 voucher (see paragraph A of
this section), the PHA must disburse housing assistance payments to the owner by
an electronic fund transfer (EFT).
The PHA must disburse each monthly housing assistance payment to the owner
no earlier than the first of the calendar month for which payment is due, and no
later than the first business day of that month.
Reference:
HUD Handbook 4350.3
ACC
EXHIBIT A – PAGE 17
Incentive-based Performance Standards
6.
PHA must promptly review and verify each monthly payment voucher
submitted by an owner, and either approve or modify the voucher, so the
monthly payment to the owner is sent no earlier than the first of the
calendar month for which payment is due to owner, and no later than the
first business day of the calendar month.
7.
Each month, the PHA must provide written formal notification to HUD of
corrective actions by the PHA, including corrective action as a result of PHA
verification that shows overpayment to an owner. The PHA must provide
such notification to HUD within ten days after the PHA’s verification and
certification of the owner’s vouchers, and determination of discrepancies in
payments to the owner. The PHA must monitor cases of overpayment or
other discrepancies for adequate resolution, and must complete resolution
of such cases within 30 days after PHA verification of overpayment to the
owner, or determination of other discrepancies in payments to the owner.
8.
The PHA must monitor and report owner’s follow-up efforts on
discrepancies identified as a result of tenant income-matching.
Quality Assurance:
On-Site Reviews
Data Systems Reports
3.6. Health and safety issues and community/resident concerns
The PHA must accept resident complaints and follow-up with owners to ensure
that owners take appropriate action.
Outcome:
Resolve health and safety issues and establish positive relations
and communications with residents and the community.
Requirements:
A. Respond to all life threatening health and safety issues
Respond immediately to all life threatening health and safety issues.
ACC
EXHIBIT A – PAGE 18
Maintain tracking system for inquiries, responses and corrective actions and
submit log to jurisdictional HUD office with monthly invoices.
Notify owner of all concerns and determine appropriate corrective action.
Monitor owner response to concerns and implementation of corrective
actions.
B. Respond to all non-life threatening health and safety and
community/resident concerns
Respond to all non-life threatening health and safety issues within two
business days of notification during normal business hours.
Maintain tracking system for community and resident inquiries and
complaints, PHA responses, and corrective actions by owner. Submit log to
jurisdictional HUD office with monthly invoices.
Notify owner of all concerns and determine appropriate corrective action.
Monitor owner response to concerns and owner implementation of corrective
actions.
References:
HUD Handbook 4381.5 REV-2
ACC
EXHIBIT A – PAGE 19
Incentive-based Performance Standards
9.
Respond, document and notify owner of life-threatening health and safety
issues within an hour of receipt of complaint or inquiry or other knowledge
of the issue, or before close of business day (whichever is sooner).
10. PHA documents PHA initiatives and actions taken to notify the owner of
non-life threatening health and safety issues, inquiries or complaints, and
responds to residents within two business days after notification to the
owner. Until final resolution of issue, PHA continues to provide follow-up
information to residents every two weeks. Documentation of all action is
recorded.
Quality Assurance:
On-Site Reviews
Monthly Invoice
3.7. Section 8 budgets, requisitions, revisions and year-end statements
In order to receive monthly ACC payments, the PHA must:
Prepare and submit Section 8 budgets and requisitions (and revisions as required)
for each HAP contract at least 90 days before the beginning of the PHA fiscal year.
Prepare and submit year-end settlement statements within 45 days after the end of
the PHA fiscal year.
Outcome: PHA submits accurate financial documents on time to HUD on time.
Requirements:
Prepare and submit annually to HUD Section 8 budget (HUD Forms 52672
and 52673) at least 90 days before the beginning of the PHA fiscal year.
Prepare and submit annually to HUD annual requisition for partial payment of
Annual Contributions (HUD Form 52663) at least 90 days before the
beginning of the PHA fiscal year.
Perform monthly comparison of HAP payments to owners and monthly ACC
partial payments from HUD.
ACC
EXHIBIT A – PAGE 20
Prepare and submit to HUD a revised budget and requisition (HUD Form
52663) when and if monthly comparison indicates ACC payments will exceed
housing assistance payments by more than 5%. The PHA must complete
submissions by the end of the PHA fiscal year.
Prepare and submit the year-end settlement statement (HUD Form 52681) to
HUD within 45 days after the end of the PHA fiscal year.
Reference:
HUD Handbook 7420.7, Chapter 8
Incentive-based Performance Standards
11. The PHA must submit to HUD an acceptable and accurate budget and
annual requisition for each HAP contract at least 90 days before the PHA
fiscal year.
If monthly reviews of HAP payments to owners and ACC payments
received from HUD indicate that the PHA will be overpaid by more than five
percent, the PHA must submit a revised budget and annual requisition to
reduce future HUD payments accordingly. The revised budget and
requisition must be submitted no later than the first day of the month
following such indication of overpayment.
12. The PHA must submit the year-end statement to HUD within 45 days after
the end of the PHA’s fiscal year.
Quality Assurance:
Monthly Invoice
Status Report
3.8. Public Housing Agency audit
The PHA must maintain complete and accurate financial records covering the
PHA’s contract administration of covered units under the ACC.
Outcome:
The PHA’s records are complete and accurate.
Requirements:
ACC
EXHIBIT A – PAGE 21
Records concerning contract administration under the ACC must be distinct
and separate from records concerning any other business of the PHA.
The PHA must maintain complete and accurate records regarding activities
relating to each HAP contract for covered units.
If the PHA is required to submit audited financial statements under OMB’s
Circular A-133, the PHA must submit audited annual financial statements that
fully comply with the requirements of OMB Circular A-133 by the earlier of:(1)
30 days after receipt of the auditor’s report or (2) 9 months after the PHA
fiscal year end (FYE). This audit must be performed by an independent public
accountant (IPA).
If the PHA submits its audited financial statements more than 60 days after
the PHA fiscal year end, the PHA must submit all financial reports required by
the HUD in unaudited form within 60 days after the PHA fiscal year end.
Submission of financial information must also be in accordance with the
requirements of HUD’s Uniform Financial Reporting Standards (24 CFR,
Part 5, Subpart H). The audit must be performed by an independent auditor,
procured using the standards in Circular A-133 and other documents
referenced in Circular A-133.
A PHA not required to submit separate audited financial statements under
OMB’s Circular A-133 must submit annual unaudited financial statements
within 60 days after the PHA fiscal year end. For-profit instrumentality PHA
entities must submit audited financial statements within 60 days after the end
of the PHA’s fiscal year.
If there are audit findings that require corrective actions, the PHA must
provide HUD with a proposed plan of corrective actions as part of the audit
submission package. By the first day of each month, until all corrective
actions are completed as required by HUD, the PHA must submit a status
report to HUD of corrective actions being implemented. Corrective actions
must proceed as rapidly as possible. If the PHA fails to timely provide all
required audited or unaudited financial statements, or fails to proceed with
timely implementation of required corrective actions, HUD may determine that
such failure is a default by the PHA in performance of its obligations under
the ACC.
Reference:
ACC contract
HUD Handbook 7420.7
OMB Circular A-133
ACC
EXHIBIT A – PAGE 22
Incentive-based Performance Standards
13. A PHA that is required to comply with OMB’s Circular A-133 must submit
unaudited financial statements to HUD, including all required data, not later
than 60 days after end of the PHA fiscal year, and audited financial
statements no later than 9 months after the end of the PHA fiscal year.
A PHA that is not required to comply with OMB’s Circular A-133 must
submit unaudited financial statements to HUD, including all required data,
within 60 days after the end of the PHA fiscal year.
A For-profit instrumentality PHA entity must submit audited financial
statements to HUD, including all required data, within 60 days after the end
of the PHA fiscal year.
Quality Assurance:
100% Review of the audit
3.9. Renewals of expiring Section 8 HAP contracts
As HAP contracts come to an end, owners must apply for HAP contract renewals
to have units remain with Section 8 project-based assistance. The PHA must
ensure that owners fulfill their obligations to residents and HUD that are consistent
with owner renewal decisions.
Outcome: Expiring Section 8 contracts are renewed.
Requirements:
Verify that owners of projects with expiring Section 8 HAP contracts provide
required notice to the PHA and project residents.
If the owner opts not to renew, take the actions described in Task 3.4
Maintain copies of owner’s notice to PHA and project residents.
If the owner chooses to renew, determine which available option (form of
renewal authorized by HUD) the owner wishes to use and notify the
jurisdictional HUD office.
Prepare renewal HAP contract in the form required by HUD.
After receipt of confirmation of funding for renewal from HUD, ensure the
HAP contract is executed (signed) by the owner and the PHA.
ACC
EXHIBIT A – PAGE 23
Execute and distribute copies of the HAP contract within one business week
to the owner, jurisdictional HUD office, and PHA files.
Reference:
Notice: H-98-34
Housing Notices H-99-08, H-99-13
Incentive-based Performance Standards
14. Monitor, process and execute renewal HAP contract documents.
Quality Assurance:
On-Site Reviews
Data Systems Reports
Monthly Invoice
3.10. General reporting requirements
To track the performance of the Section 8 program, monitor and evaluate PHA
performance, and identify technical assistance needs, HUD requires the PHA to
regularly report its contract administration activities. Consequently, the PHA must
provide monthly, quarterly, and annual reports to the jurisdictional HUD office.
Outcome: HUD can monitor and evaluate program and PHA performance from
accurate, timely reports by the PHA.
A. Monthly reports
The PHA must submit reports and an invoice to the Contract Administrator
Oversight Monitor (CAOM) by the tenth business day of each month for the
previous month’s activities.
Hot topics: Projects that required special attention due to such matters as,
abatement actions, excessive resident complaints, inquiries from governmental
officials or the general public.
ACC
EXHIBIT A – PAGE 24
Work Plan Status Report: The Work Plan status report details:
• Areas reviewed and services performed, including date of review and
services; names of PHA staff performing the review and performing the
services
• Any significant administrative actions that could affect administration of the
contract
• Quality control activities and results
• Major accomplishments, success stories, etc.
• Noteworthy meetings
• Pending issues
B. Quarterly reports
The PHA must submit an updated Work Plan and Work Plan status reports to the
designated CAOM.
C. Annual reports
By the close of each PHA fiscal year, the PHA must submit to HUD a report that
details its progress in accomplishing the Work Plan for that fiscal year. The report
should detail all of the PHA actions and services (including dates, locations, and
employee names) for that fiscal year. Also at the close of each fiscal year, the
PHA must submit a Work Plan for the following year that details its plan to satisfy
the ACC contract administration requirements.
ACC
EXHIBIT A – PAGE 25
Incentive-based Performance Standards
15. HUD receives PHA’s
(a) Monthly Reports by the tenth business day after the end of the month
(b) Quarterly reports by the tenth business day after the end of the quarter
(c) Annual reports by the twentieth business day after the end of the PHA
fiscal year
Quality Assurance:
On-Site Reviews
Data Systems Reports
Review of submitted reports
3.11. Physical inspection
HUD has or will conduct a baseline physical inspection for every Section 8 property
with a HUD-administered HAP contract. The Real Estate Assessment Center’s
(“REAC”) physical inspection software and protocol is being used for all
inspections. (See http://www.hud.gov/reac/reaphyin.html). Once this baseline
physical inspection is completed, HUD will determine frequency of future
inspections. HUD may issue a task order under the ACC to have the PHA perform
annual physical inspections. If such a task order is issued, HUD will negotiate with
the PHA a fixed-price fee for such services at that time.
Outcome:
Verify completion of corrective actions based upon the analysis of
the results of the annual physical inspections conducted on
properties included in the ACC. Take legal actions as directed by
HUD for enforcement of the HAP contract.
Requirements:
Post Inspection Activities:
Provide follow-up with owner on violations and corrective actions needed.
Provide owner with time-frame to correct violations.
Work with owner to eliminate the deficiencies.
ACC
EXHIBIT A – PAGE 26
Abate payments when owner fails to correct violations within designated time
period.
Notify jurisdictional HUD office of abatement of payments and specific
reasons for the action.
Notify jurisdictional HUD office of the completion of required actions.
Take legal action as directed by HUD for enforcement of the HAP contract.
Reference:
HUD Handbook 4350.1
Federal Register, September 1, 1998
Housing Assistance Payments (HAP) Contract
ACC
EXHIBIT A – PAGE 27
Incentive-based Performance Standards
16. PHA monitors performance and compliance indicators of unacceptable
physical inspection results. Until final resolution, PHA continues to provide
follow-up to HUD every 30 days on actions by the owner and PHA.
4. PHA ADMINISTRATIVE FEE
4.1. Definitions
ACCEPTABLE QUALITY LEVEL (AQL). The required PHA performance level for
each IBPS task. The AQL for each IBPS task is specified in column C of the
Performance Requirements Summary (PRS) table.
ADMINISTRATIVE FEE. The monthly fee HUD pays the PHA for each covered
unit under HAP contract on the first day of the month. The administrative fee (per
unit per month) is the total of the basic fee plus the incentive fee.
BASIC FEE. The sum of the earned IBPS fees for a covered unit (per unit per
month). HUD pays the earned basic fee to the PHA for each covered unit under
HAP contract on the first day of the month during the ACC term.
Each IBPS task is allocated a specified percentage (IBPS percentage) of the
maximum basic fee (per covered unit per month for each FMR area in the PHA
service area). The Performance Requirements Summary (PRS) states the IBPS
percentage for each IBPS task (see column D of the PRS). (During the term of the
ACC, HUD may elect to amend the specification of IBPS tasks, the AQL for
performance of an IBPS task, or the IBPS percentage for an IBPS task.)
BASIC FEE PERCENTAGE. A percentage used to calculate the amount of the
maximum basic fee after the first two years (twenty-four calendar months) of the
ACC term. The amount of the basic fee percentage for each subsequent year
(twelve calendar months) of the ACC term is specified in Exhibit E of the ACC. For
each such year, and for each FMR area in the PHA service area, the maximum
basic fee for each month is calculated by multiplying the basic fee percentage
specified in Exhibit E of the ACC times HUD’s two-bedroom published FMR (for
the FMR area) in effect at the beginning of that year of the ACC term.
DISINCENTIVE DEDUCTION. A deduction from the per unit per month IBPS fee.
For each IBPS task, the disincentive deduction equals the maximum IBPS fee
times the disincentive deduction percentage. HUD deducts this amount for PHA
performance of an IBPS task that falls below the acceptable quality level. The
ACC specifies the performance standard for assessing a disincentive deduction for
ACC
EXHIBIT A – PAGE 28
performance of an IBPS task. (During the term of the ACC, HUD may elect to
amend the performance standard or the disincentive deduction percentage.)
DISINCENTIVE DEDUCTION PERCENTAGE. A percentage used to calculate
the amount of a disincentive deduction from the IBPS fee. The disincentive
deduction percentage for each IBPS task is specified in column F of the PRS.
EARNED BASIC FEE. The amount of the basic fee earned by the PHA per unit
per month (in an FMR area). The earned basic fee equals the sum of the earned
IBPS fees for the IBPS tasks.
EARNED IBPS FEE. The amount of the IBPS fee earned by the PHA per unit per
month. The earned IBPS fee equals the maximum IBPS fee minus any
disincentive deduction.
EARNED INCENTIVE FEE. The amount of an incentive fee earned by the PHA.
IBPS. Incentive-based Performance Standards.
IBPS FEE. The maximum fee per unit per month for performance of an IBPS task
listed in the PRS. The IBPS fee for an IBPS task equals the maximum basic fee
times the IBPS percentage.
IBPS PERCENTAGE. The percentage of the maximum basic fee for performance
of each of the IBPS tasks. The IBPS percentage times the maximum basic fee is
the maximum IBPS fee per unit per month for each IBPS task. The earned IBPS
fee may be reduced by disincentive deductions for PHA performance of an IBPS
task that falls below the acceptable quality level.
IBPS TASK. Any of the core contract administration tasks listed in the PRS (and
described in the SOW). (Column A of the PRS lists the IBPS tasks.) HUD
measures the PHA’s performance of each IBPS task to determine the amount of
the PHA’s earned basic fee or earned incentive fee for each covered unit.
INCENTIVE-BASED PERFORMANCE STANDARDS (IBPS): A description of
specific elements of each core task. HUD will measure the PHA’s performance of
each such element as the performance standard to determine the PHA’s earned
administrative fees (including earned basic fees and earned incentive fees).
INCENTIVE FEE. A per unit per month administrative fee in addition to the basic
fee. The incentive fee is paid for PHA performance of an IBPS task that exceeds
the acceptable quality level for the IBPS task. The total of incentive fees earned in
each calendar quarter is paid at the end of the quarter.
INCENTIVE FEE PERCENTAGE. The percentage of the incentive fee pool for
PHA performance of an IBPS task that exceeds the acceptable quality level.
Column E of the PRS specifies the incentive fee percentage, and the performance
standard for awarding the incentive fee for performance of the IBPS task.
ACC
EXHIBIT A – PAGE 29
INCENTIVE FEE POOL. The maximum amount of incentive fees that may be
earned by the PHA for each month of the ACC term. (The procedure for
calculating the incentive fee pool is specified as Steps [17 - 21] of the fee
calculation procedure at § 4.8 of ACC Exhibit A.)
MAXIMUM BASIC FEE. The amount of the maximum basic fee per unit per
month for each FMR area in the PHA service area. The amount of the maximum
basic fee for each FMR area in the service area (and for each year of the ACC
term) is determined in accordance with Exhibit E of the ACC.
MAXIMUM IBPS FEE. The maximum basic fee times the IBPS percentage
(before any disincentive deduction).
PRS. Performance Requirements Summary (see § 4.7 of Exhibit A).
SOW. Statement of Work. A description of the core tasks to be performed by the
PHA under the ACC (see § 3 of Exhibit A).
ACC
EXHIBIT A – PAGE 30
4.2. Evaluation of PHA performance
During the ACC term, HUD will conduct a monthly and quarterly evaluation and
scoring of the PHA’s performance in contract administration of the covered units.
Calculation of the amount of the administrative fees earned by the PHA is based
on HUD’s rating of the PHA’s performance against defined levels of performance
of specific contract administration tasks designated as performance standards.
The Statement of Work (SOW) describes specific core contract administration
tasks, and specific incentive-based performance standards (IBPS) that will be
used to rate PHA performance of the core tasks. The performance requirements
summary (PRS) (§ 4.7 of Exhibit A) defines measurable levels of IBPS
performance that determine whether the PHA receives an increased fee (by
adding ”incentive fees”) or a reduced fee (by subtracting “disincentive deductions”).
Each month, HUD rates the PHA’s performance in completion of the IBPS tasks to
determine the amount of earned basic fees. HUD determines the amount of the
earned basic fee (per covered unit per month) by monthly scoring of the PHA’s
performance of IBPS tasks. This scoring is based on HUD’s review of data
submitted and certified in the monthly invoice by the PHA.
Each quarter, HUD rates the PHA’s performance in completion of specified IBPS
tasks (designated in column E of the PRS) to determine the amount of earned
incentive fees. HUD determines the amount of the incentive fees earned by the
PHA by quarterly scoring of the PHA’s contract administration performance of the
specified IBPS tasks.
The monthly and quarterly scoring is based on the level of PHA’s performance of
the tasks used as incentive-based performance standards (IBPS) described in the
Statement of Work. The PRS specifies the levels of IBPS performance used to
determine incentive fees (column E of the PRS) or disincentive deductions
(column F of the PRS). During the term of the ACC, HUD may amend the IBPS
standards or the PRS by giving notice of such amendment to the PHA..
Amendments to the IBPS standards or the PRS will be effective no later than the
first month of the next quarter following such notification.
4.3. Incentive fee
In addition to the basic fee, the PHA may earn an incentive fee determined by
HUD for PHA performance of the contract administration services for designated
IBPS tasks that exceeds acceptable quality levels (AQL) of performance. § 4.8 of
Exhibit A (Part II of fee calculation procedure) specifies the step-by-step procedure
for calculating the amount of earned incentive fees.
Each month, HUD will evaluate the PHA’s performance in providing contract
administration services for all covered units under the ACC to determine the
ACC
EXHIBIT A – PAGE 31
amount of earned incentive fees paid quarterly. This evaluation will determine the
portion of the monthly incentive fee pool that the PHA has earned for each month
of that quarter.
HUD may add or modify performance standards during the ACC term, may add or
modify the factors used to measure performance, and may specify the amount of
the incentive fee for a specified level of performance. However, HUD must notify
the PHA of any such changes before the rating period for which such changes are
used to rate PHA performance.
4.4. Fee payment
Each month, earned administrative fees are calculated and based upon the
number of covered units under contract administration by the PHA on the first day
of the month.
4.4.1. Payment of basic fee
Column H of the PRS specifies whether the IBPS fee for a particular IBPS task is
paid monthly or annually.
Each invoice must be fully supported by documentation (as required by HUD) of
the PHA's level of performance of each IBPS standard for an IPBS task. Such
documentation shall be sufficient to show:
1.
Whether the PHA has met the AQL for the performance standard (column C
of the PRS).
2.
The amount of any disincentive deduction (as calculated in accordance with
column F of the PRS).
3.
The amount of any incentive fee (as calculated in accordance with column E
of the PRS).
The determination of performance levels used to calculate earned administrative
fees (earned basic fees and earned incentive fees), and the determination of the
amount of such fees is subject to modification and correction by HUD as a result of
HUD quality assurance reviews or otherwise. HUD may recover any
overpayments, and may adjust amounts of payments against subsequent invoices
to correct or adjust any overpayment or error in determination of earned
administrative fees.
Notwithstanding any disincentive deductions from earned administrative
fees for PHA failure to meet the AQL for any IBPS task, failure to meet the
AQL in performance of the IBPS task is a violation of PHA obligations under
the ACC. HUD may exercise any available remedies for such default or any
other default under the ACC. HUD may terminate the ACC at any time, in
ACC
EXHIBIT A – PAGE 32
whole or in part, if HUD determines that PHA has committed any default
under the ACC.
4.4.2. Payment of incentive fee
HUD will pay earned incentive fees for a particular IBPS task quarterly. HUD will
base the amount of the earned incentive fee per unit per month on the PHA’s
performance against the incentive based performance standards listed in the
Statement of Work. The amount of the incentive fee for each IBPS task is
calculated in accordance with column E of the PRS. Column E specifies the
standard of performance required for the PHA to earn the incentive fee for
performance of the IBPS task. Column E also specifies the percentage of the
monthly incentive fee pool that the PHA will earn for meeting this performance
standard.
HUD will review the PHA’s performance in carrying out the PHA’s annual Work
Plan and PHA progress reported in the monthly invoices for the applicable quarter.
The HUD findings will be compared to the PHA invoice for the incentive fee and
adjustments may be made to reflect the results of the HUD findings.
4.5. Availability of funds
All fee payments are subject to the availability of appropriated funds.
4.6. Use of fee income
The PHA may use or distribute for any purpose administrative fees that the PHA
has earned under the ACC. HUD may reduce or request reimbursement of
administrative fees paid if subsequent quality assurance indicates the performance
indicated by the PHA was not attained.
4.7. Performance Requirements Summary (PRS)
There is at least one IBPS performance standard for each core task described in
the Statement of Work. These IBPS standards are used to determine the amount
of earned basic fees and earned incentive fees.
For each IBPS task, the PRS table below specifies:
IBPS task number (column A).
IBPS task and SOW. Task description and reference to SOW requirement
(column B)
Acceptable quality level (AQL) (column C).
ACC
EXHIBIT A – PAGE 33
IBPS percentage. The IBPS percentage of the maximum basic fee (column
D).
Incentive fee (as percentage of monthly incentive fee pool). How to calculate
the incentive fee (if incentive fees may be awarded for performance of the
particular IBPS task) (column E). The PRS table specifies the available
incentive fee amount as a percentage of the incentive fee pool, and describes
the performance standard that must be met to receive an incentive fee for
performance of the IBPS task.
Disincentive deduction. How to calculate the amount of a disincentive
deduction from the maximum basic fee (column F). The PRS table specifies
the performance standard that determines when the disincentive deduction is
assessed, and specifies the amount of the disincentive deduction as a
percentage of the maximum IBPS fee.
Quality assessment (QA). How HUD will assure the quality of the PHA’s
reported performance (column G).
Payment. When HUD will pay the IBPS administrative fees earned for
performance of a particular IBPS task (monthly or annually) (column H).
The information in the PRS table below governs HUD’s payment of administrative
fees to the PHA for all work performed under the ACC.
ACC
EXHIBIT A – PAGE 34
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
Monthly
#
1.
Management &
occupancy
reviews
Section 3.2
Each month, 95% of
required reports and
data are submitted
to HUD on time
(within 30 calendar
days after scheduled
completion of the
M&O review)
8%
(as % of
maximum
IBPS fee)
20% of the
Incentive fee
pool if PHA
submits
100% of
required
reports and
data on time
2% deduction
for every 1%
that the
percentage of
on time
submissions
falls below the
AQL
On-Site
Reviews
20% of the
Incentive fee
pool if PHA
submits 100%
of required
reports on
time
2% deduction
for every 1%
that the
percentages of
on time
submissions
falls l below the
AQL
On-Site
Reviews
Systems
Data
Reports
AQL 95% submitted
on time
2.
Documenting
owner civil
rights
compliance
Section 3.2
Each month, 95% of
required civil rights
compliance reports
are submitted to
HUD on time ( within
30 calendar days
after M&O review
completion)
5%
AQL::
95% of civil rights
reports submitted on
time
ACC
EXHIBIT A – PAGE 35
Systems
Data
Reports
Monthly
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
5%
N/A
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
On-Site
Reviews
Monthly
#
3.
Processing
rental
adjustments
Section 3.3
Each month, 100%
of owner requests
for rent adjustments
and all rent
adjustments are
correctly processed
within 30 calendar
days after owner’s
request for a budgetbased rent
adjustment, or on
the anniversary date
of the HAP contract
for an AAF based
rent adjustment
(as % of
maximum
IBPS fee)
1% deduction
for every 1%
that
performance
falls below the
AQL, but not
below 75%.
Systems
Data
Reports
50% deduction
if performance
falls below 75%.
AQL:
100% of owner rent
adjustment requests
correctly processed
within 30 calendar
days
4.
Owner opt-out
notices and
Contract
Terminations
Section 3.4
Each month, 100%
of owner opt-out
notices or
terminations are
submitted to HUD
within one business
day after notice by
owner
5%
AQL:
100% of owner optout notices or
terminations
submitted within one
business day
ACC
EXHIBIT A – PAGE 36
N/A
1% deduction
for every
business day
that the average
time when
owner notices
or termination
announcements
are supplied to
HUD exceeds
the AQL (partial
days are
rounded to the
lowest whole
day)
On-site
Reviews
Systems
Data
Reports
Monthly
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
On-site
Reviews
Monthly
#
5.
Owner Opt-out
and HAP
contract
termination:
Submit
resident data
to HUD
Section 3.4
ACC
100% of complete
resident data
submitted to
jurisdictional HUD
office 90 calendar
days before contract
expiration and/or
termination.
5%
AQL:
100% of resident
data submitted 90
calendar days before
contract expiration
and/or termination
and/or termination
EXHIBIT A – PAGE 37
30% of the
incentive fee
pool if PHA
submits
100% of data
to HUD an
average of
100 days or
more before
contract
expiration
and/or
termination
(as % of
maximum
IBPS fee)
50% deduction
if average
notification time
is from 85-89
calendar days
before
expiration
and/or
termination
(portions of
days are
rounded to the
nearest whole
day).
100% deduction
if average
notification time
is less than 85
calendar days
before
expiration
and/or
termination
Systems
Data
Reports
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
15%
N/A
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
On-Site
Reviews
Monthly
#
6.
Review, verify,
and authorize
monthly
§ 8 vouchers
Section 3.5
100% of monthly
vouchers are
processed so
monthly payment to
the owner is sent no
earlier than the first
calendar day of the
month and no later
than the first
business day of the
month.
AQL:
100% of vouchers
processed within
specified time-frame
ACC
EXHIBIT A – PAGE 38
(as % of
maximum
IBPS fee)
1% deduction
for every 1% the
processing of
vouchers falls
below the AQL,
except that if
performance
falls below 75%,
a 50%
deduction shall
apply
Systems
Data
Reports
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
3%
N/A
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
On-Site
Reviews
Monthly
#
7.
Notice of
corrective
actions
Section 3.5
In100% of cases
requiring corrective
action, PHA notifies
HUD of such action
within 10 calendar
days after PHA
verification and
certification of
voucher.
In 100% of
overpayments, PHA
resolves
overpayment issue
within 30 calendar
days after PHA
verification and
certification of
voucher.
AQL:
100% of total cases
(corrective action
cases plus
overpayment cases)
handled within
specified timeframes
ACC
EXHIBIT A – PAGE 39
(as % of
maximum
IBPS fee)
1% deduction
for every 1%
that the
notifications and
resolutions
combined falls
below the AQL
of 100%, except
that if
performance
falls below 75%,
a 50%
deduction shall
apply
Systems
Data
Reports
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
3%
N/A
3% deduction
for every day
the AQL is
exceeded for
any project
On-site
reviews
Systems
data
reports
Monthly
7%
N/A
1% deduction
for every 1% of
responses that
exceed the
AQL, except
that if
performance
falls below 75%
of responses , a
50% deduction
shall apply
On-Site
Reviews
Monthly
#
8.
9.
Monitoring &
reporting
owner’s followup efforts on
discrepancies
identified as a
result of tenant
income
matching
initiatives.
100% of projects
with households
identified through
tenant incomematching
discrepancies are
monitored and
reported to HUD by
the tenth business
day of each month.
Section 3.5
AQL:
Monitoring report to
HUD by tenth
business day of
each month for all
projects.
Lifethreatening
health & safety
issues
100% of initial PHA
responses to lifethreatening health
and safety issues
(notice to owner or
other appropriate
initial PHA response)
are completed within
one hour after the
PHA knows about
the issue.
Section 3.6A
AQL:
100% of responses
and notifications of
life-threatening
issues completed
within one hour.
ACC
EXHIBIT A – PAGE 40
(as % of
maximum
IBPS fee)
Monthly
Invoices
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
5%
N/A
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
10% deduction
for every
business day, or
part of a day,
that the average
PHA response
time exceeds
two business
days
On-Site
Reviews
Monthly
2% deduction
for every 1% of
PHA
submissions
that falls below
the AQL
Monthly
Invoices
#
10
Non-lifethreatening
health & safety
issues
Section 3.6B
PHA responds to
100% of all non-life
threatening health
and safety inquiries
and complaints
within two business
days follows-up
every two weeks
until final resolution
(as % of
maximum
IBPS fee)
Monthly
Invoices
AQL:
100% of PHA
responses within
two business days
11.
Budgets,
requisitions,
revisions
Section 3.7
100% of all budgets
& annual requisitions
for all HAP contracts
are submitted to
HUD ninety calendar
days before the
PHA’s fiscal year.
8%
100% of revised
budgets & annual
requisitions to
reduce future
payments are
submitted to HUD by
the first day of the
month after
identification of
overpayments.
AQL:
100% on time
submissions
ACC
EXHIBIT A – PAGE 41
N/A
FMC
Status
Reports
Monthly
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
8%
N/A
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
Status
Report
Annually
#
12.
Year-end
statement
Section 3.7
The year-end
statement is
submitted within 45
calendar days after
the end of the PHA’s
fiscal year.
AQL:
Submission within
45 calendar days.
ACC
EXHIBIT A – PAGE 42
(as % of
maximum
IBPS fee)
4% deduction
for every day
the submission
exceeds the
AQL
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
3%
N/A
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
100%
Review of
Audit
Annually
#
13.
Public Housing
Agency audit
Section 3.8
For a PHA that must
comply with OMB’s
Circular A-133,
unaudited financial
statement is
submitted to HUD
within 60 calendar
days after the PHA’s
fiscal year end and
audited financial
statement is submitted
to HUD within nine
calendar months after
the PHA’s fiscal year
end. For a PHA that
is not required to
comply with OMB’s
Circular A-133,
unaudited financial
statement is submitted
to HUD within sixty
calendar days after
the PHA’s fiscal year
end.
For a For-profit
instrumentality PHA,
the audited financial
statement is submitted
to HUD within sixty
calendar days after
the PHA’s fiscal year
end
AQL:
100% of financial
statements submitted
on time
ACC
EXHIBIT A – PAGE 43
(as % of
maximum
IBPS fee)
2% deduction
for every
calendar day
that the financial
statements
exceeds the
days specified
in the AQL
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
On-Site
Reviews
Monthly
#
14.
Renewals of
expiring HAP
contracts
Section 3.9
90% of renewal HAP
contracts executed
and submitted to
(HUD) sixty
calendar days before
contract expiration
12%
AQL:90% of HAP
contracts submitted
on time
15.
ACC
General
reporting
requirements
16 out of 17 required
reports submitted to
HUD on time
Section 3.10
AQL:
16 reports submitted
to HUD on time
5%
EXHIBIT A – PAGE 44
(as % of
maximum
IBPS fee)
20% of the
incentive fee
pool to
monitor,
process, &
execute 95%
of HAP
contract
documents.
An additional
10% of the
incentive fee if
100% is
attained.
3% deduction
for every 1% of
renewal HAP
contracts
submitted to
HUD after the
AQL period
N/A
10% deduction
per report not
submitted on
time
.
Data
Systems
Reports
Monthly
Invoices
On-Site
Reviews;
Data
Systems
Reports;
Review of
submitted
reports
Annually
IBPS PERFORMANCE REQUIREMENTS SUMMARY
A
IBPS
TASK
B
TASK & SOW
C
ACCEPTABLE
QUALITY LEVEL
(AQL)
D
E
IBPS
PERCENT
INCENTIVE
FEE
PER CENT
(of
max.
basic
fee)
(as % of
incentive fee
pool)
3%
N/A
F
G
H
DISINCENTIVE
DEDUCTION
(“deduction”)
QA
METHOD
PAYMENT
On-Site
Reviews
Monthly
#
16.
Monitoring
physical
inspection
results
Section 3.11
For 95% of projects
with unacceptable
physical inspection
performance and
compliance
indicators:
PHA notifies owners
within thirty days
after receipt of
inspection results
from HUD, and
PHA monitors
follow-up reports to
HUD by the tenth
business day of
every month until
final resolution is
reached.
AQL:
95% of initial
notifications and
follow up reports
completed within
required time
frames.
ACC
EXHIBIT A – PAGE 45
(as % of
maximum
IBPS fee)
2% reduction
for every 1% of
notifications and
follow-up
reports
completed after
the AQL period
Systems
Data
Reports
Monthly
Invoices
4.8. How to calculate earned administrative fees
MONTHLY FEE CALCULATION
PART 1
DETERMINING EARNED BASIC FEES
DETERMINING TOTAL EARNED BASIC FEES
Part I calculates the total amount of the PHA’s earned basic fees for
the fee month.
1 to 4
DETERMINING TOTAL OF MAXIMUM BASIC FEES FOR ALL
COVERED UNITS
Execute Steps 1 to 4 for each FMR area in the PHA service area.
In Step 5, add the Step 3 amounts for all FMR areas.-
ACC
EXHIBIT A – PAGE 46
1
DETERMINING MAXIMUM BASIC FEE
(FOR COVERED UNITS IN AN FMR AREA)
Step 1 determines the maximum basic fee amount used to calculate
administrative fees for any fee month in any year of the ACC term
(initial ACC term or any renewal term). Each year of the ACC term is a
period of twelve calendar months. The first year of the ACC term
commences on the first day of the month of HUD’s first assignment to
the PHA of existing HAP contracts for covered units for contract
administration under the ACC.
For a fee month in the first two years of the ACC term
(the first twenty four months):
Exhibit E of the ACC specifies the dollar amount of the maximum basic
fee (per unit per month) for each FMR area during the first two years of
the ACC term. The maximum basic fee is entered in Step 1-B
For a fee month in subsequent years of ACC term
(years three, four or five):
The ACC does not specify the dollar amount of the maximum basic fee
for each subsequent year of the ACC term (years 3, 4 or 5). For each
FMR area and for each subsequent year, Exhibit E of the ACC
specifies the basic fee percentage that is used to calculate the
maximum basic fee. The maximum basic fee (for each FMR area) is
calculated by multiplying the basic fee percentage for that year times
the two-bedroom published FMR in effect at the beginning of that year
of the ACC term. The maximum basic fee for year 3, 4 or 5 is
calculated in Steps 1-C to 1-E.
1-A
Year of ACC term
Enter the year of the ACC term in which
the fee month falls (year 1 to year 5).
After completing Step 1-A:
• For fee month in year 1 or year 2 of
ACC term, go to Step 1-B.
• For fee month in a subsequent year of
the ACC term, go to Steps 1-C to 1-E.
1-B
MAXIMUM BASIC FEE:
IN FIRST TWO YEARS
OF ACC TERM
Step-1 B states the maximum basic fee in
year 1 or year 2 of the ACC term (as
specified in Step 1-A).
ACC
ACC
EXHIBIT A – PAGE 47
From Exhibit E of the ACC, enter the
amount of the maximum basic fee for the
FMR area for year 1 or year 2.
1-B
Enter the same amount in Step 1-F. Skip
to Step 1-F.
1-C to
1-E
MAXIMUM BASIC FEE:
IN SUBSEQUENT YEAR
OF THE ACC TERM
Steps 1-C to 1-E are used to calculate the
maximum basic fee for a fee month in
year 3, 4 or 5 of ACC term (as specified in
Step 1-A ).
1-C
From Exhibit E of the ACC, enter the
basic fee percentage for that year.
1-D
Enter the amount of the two-bedroom
FMR for the FMR area.
Use the two-bedroom FMR in effect at the
beginning of the first month of the year of
the ACC term specified in Step 1-A. (from
HUD’s published FMR notice).
Enter the amount calculated by multiplying
Step 1-C times Step 1-D.
1-E
Enter the same amount in Step 1-F.
1-F
Maximum basic fee
(for covered units in
FMR area)
For fee month in year 1 or year 2 of the
ACC term (as specified in Step 1-A):
Enter amount from Step 1-B.
For fee month in year 3, 4 or 5 of the ACC
term (as specified in Step 1-A):
Enter amount from Step 1-E.
2
Covered units (in FMR
area)
Enter the number of covered units in the
FMR area (at the beginning of the fee
month). (HUD will provide a summary of
units in each FMR area monthly).
3
Total for FMR area
Multiply Step 1-F times Step 2.
ACC
EXHIBIT A – PAGE 48
4
Repeat for next FMR
area
Repeat Steps 1 to 3 for the next FMR area
(loop to Step 1-A). After executing these
steps for all FMR areas in the service area,
go to Step 5.
5
Total for PHA service
area
Add the Step 3 amounts for all FMR areas.
ACC
EXHIBIT A – PAGE 49
CALCULATION OF EARNED BASIC FEES
The earned basic fee is the sum of the earned IBPS fees for a covered
unit. The following steps calculate the total amount of the PHA’s
earned basic fees for all covered units in the service area.
Column H of the PRS specifies whether the IBPS fee for performance
of each particular IBPS task is paid monthly or annually. The total of
earned basic fees for the fee month is calculated by adding earned
IBPS fees for monthly IBPS tasks and for annual IBPS tasks payable
for that fee month.
6 to 10
IBPS TASKS PAID MONTHLY:
DETERMINING TOTAL IBPS FEES
Steps 6 to 8 calculate the IBPS fee for each IBPS task paid monthly.
Repeat these steps for each such IBPS task..
Step 10 calculates the total of these IBPS fees for all covered units in
the service area.
At the time of ACC execution, the PRS specifies that IBPS fees for the
following IBPS tasks are paid monthly:
IBPS tasks 1 to 10 and 13 to 15.
6
DETERMINING MAXIMUM IBPS FEE
6-A
IBPS percentage
For each IBPS task paid monthly (as
specified in column H of the PRS):
Enter the IBPS percentage for the IBPS
task (from Column D of the PRS).
6-B
Maximum total IBPS
fees for an IBPS task
Multiply Step 5 times Step 6-A..
7
DETERMINING DISINCENTIVE DEDUCTION
7-A
Disincentive deduction
percentage
Calculate and enter any applicable
disincentive deduction percentage for the
IBPS task.
Column F of the PRS explains how to
calculate the disincentive deduction
percentage for each IBPS task.
ACC
EXHIBIT A – PAGE 50
7-B
Disincentive deduction
amount
Multiply Step 6-B times Step 7-A.
8
Total IBPS fees earned
for an IBPS task
Subtract Step 7-B from Step 6-B
9
Repeat
Repeat Steps 6 to 8 for the next IBPS task
paid monthly (loop to Step 6-A). After
executing for all such IBPS tasks, go to
Step 10.
10
Total IBPS fees (for
IBPS tasks paid
monthly)
Add the IBPS fees for all IBPS tasks paid
monthly as calculated in Step 8.
11 to 15
IBPS TASKS PAID ANNUALLY:
DETERMINING TOTAL IBPS FEES
For each IBPS task paid annually, Steps 11 to 15 calculate the total of
annual IBPS fees for all covered units in the service area.. Repeat
these steps for each such IBPS task.
At the time of ACC execution, the PRS specifies that IBPS fees for the
following IBPS tasks are paid annually:
IBPS tasks 12, 13 and 15.
11
DETERMINING MAXIMUM IBPS FEE
11-A
IBPS percentage
For each IBPS task paid annually (as
specified in column H of the PRS):
Enter the IBPS percentage for the IBPS
task (from Column D of the PRS).
11-B
Maximum total IBPS
fees for an IBPS task
Multiply Step 5 times Step 11-A.
ACC
EXHIBIT A – PAGE 51
For the fee month when the annual IBPS
fee is payable: Enter zero.
11-C
For the other fee months:(i.e., all fee
months except the fee month when the
annual IBPS fee is payable):
Add the Step 11-C amount from the
monthly fee calculation for the preceding
fee month and the Step 11-B amount from
the monthly fee calculation for the current
fee month.
Enter Step 11-C amount from the monthly
fee calculation for the preceding fee month
11-D
Add Step 11-B and Step 11-D
11-E
Annual IBPS fee pool
12
DETERMINING DISINCENTIVE DEDUCTION
12-A
Disincentive deduction
percentage
Calculate and enter any applicable
disincentive deduction percentage for the
IBPS task.
Column F of the PRS explains how to
calculate the disincentive deduction
percentage for each IBPS task.
12-B
Disincentive deduction
amount
Multiply Step 11-E times Step 12-A.
13
Total IBPS fees earned
for an IBPS task
Subtract Step 12-B from Step 11-E
14
Repeat
Repeat Steps 11 to 13 for the next IBPS
task paid annually (loop to Step 11-A).
After executing for all such IBPS tasks, go
to Step 15.
15
Total IBPS fees (for
IBPS tasks paid
monthly)
Add the IBPS fees for all IBPS tasks paid
annually as calculated in Step 13.
16
Total IBPS fees for fee
month
Add Step 10 and Step 15
ACC
EXHIBIT A – PAGE 52
PART 2
17
DETERMINING EARNED INCENTIVE FEES
Determining the incentive fee pool
The incentive fee pool is the maximum amount of incentive fees that
may be earned by the PHA for each month of the ACC term. The total
amount of earned incentive fees for each month may not exceed the
amount of the incentive fee pool available for the month.
Step 17 calculates the total amount of the incentive fee pool
Earned Incentive fees are paid quarterly The quarterly payment is the
total of earned incentive fees for the three calendar months in the
quarter..
17-A
•
Year of ACC term
•
17-B &
17-C
17-B
MAXIMUM INCENTIVE
FEE:
IN FIRST TWO YEARS
OF ACC TERM
For a fee month in year 1 or year 2 of
the ACC term (from Step 1-A), go to
Step 17-B.
For a fee month in year 3. 4 or 5 of the
ACC term (from Step 1-A), go to
Step 17-D.
Steps 17-B and 17-C are used to calculate
the maximum incentive fee (per unit per
month) for a fee month in year 1 or year 2
of the ACC term (as specified in Step 1-A).
For a fee month in year 1 or year 2 of the
ACC term:
For each FMR area, enter the amount of
the two-bedroom FMR for the FMR area.
Use the two-bedroom FMR in effect at the
beginning of the ACC term (from HUD’s
published FMR notice).
17-C
Multiply 0.01 (one percent) times the
amount in Step 17-B.
Enter the same amount in Step 17-F.
ACC
EXHIBIT A – PAGE 53
17-D &
17-E
MAXIMUM INCENTIVE
FEE:
IN SUBSEQUENT YEAR
OF ACC TERM
Steps 17-D and 17-E are used to calculate
the maximum incentive fee for a fee month
in year 3, 4 or 5 of the ACC term (as
specified in Step 1-A).
17-D
For a fee month in year 3, 4 or 5 of the
ACC term
For each FMR area, enter the amount of
the two-bedroom FMR for the FMR area.
(See Exhibit E).
17-E
Multiply 0.01 (one percent) times the
amount in Step 17-D.
Enter the same amount in Step 17-F.
17-F
Maximum incentive fee
(for covered units in
FMR area)
For a fee month in year 1 or year 2 of the
ACC term (as specified in Step 1-A):
Enter the amount from Step 17-B.
For a fee month in year 3, 4 or 5 of the
ACC term (as specified in Step 1-A):
Enter the amount from Step 17-E.
18
Covered units in FMR
area
Enter the number of covered units in the
FMR area (at the beginning of the month).
(Same as amount in Step 2.)
19
Total for FMR area
For each FMR area, multiply Step 17-F
times Step 18.
20
Repeat
Repeat Steps 17 to 19 for the next FMR
area (loop to Step 17-A). After completing
Step 19 for all FMR areas, go on to
Step 21.
21
Incentive fee pool -Total for PHA service
area
Add the amounts calculated in Step 19 for
all FMR areas in the service area.
ACC
EXHIBIT A – PAGE 54
22
Determining incentive fee (for IBPS task)
The PHA may earn incentive fee for above AQL performance of
specified IBPS tasks (Column E of the PRS). Step 22 calculates the
amount of any incentive fees earned for performance of an IBPS task.
Repeat Step 22 for each IBPS task for which incentive fee may be
earned.
At the time of ACC execution, the PRS specifies that the PHA may earn
incentive fees for performance of the following four IBPS tasks::
IBPS task #1 (management and occupancy reviews),
IBPS task #2 (document owner compliance),
IBPS task # 5 (provide resident data to HUD), and
IBPS task #14 (renewals of expiring § 8 HAP contracts).
By notice to the PHA, HUD may modify the designation of such IBPS
tasks, and may modify the performance standard or incentive fee
percentage used to calculate the incentive fee.
For IBPS #14, there are two separate incentive fee performance
standards and incentive fee percentages for performance at the
specified performance level.
Execute Steps 22 for each IBPS task designated as a performance
standard used to determine incentive fees.
22-A
Incentive fee percentage
Enter incentive fee percentage for the
IBPS task and performance standard (from
Column E of the PRS).
22-B
Incentive fee earned
Determine if PHA qualifies for the incentive
fee (for the IBPS task and performance
standard). Column E of the PRS explains
how to determine when the PHA qualifies
for an incentive fee.
If the PHA qualifies for an incentive fee,
multiply Step 8-D times Step 9-A (for the
IBPS task and performance standard).
22-C
ACC
Repeat
Repeat Step 22 for the next IBPS task and
performance standard (loop to Step 22-A).
After completing Step 22-B for each IBPS
standard (for which an incentive fee may
be earned), go on to Step 23.
EXHIBIT A – PAGE 55
23
Total incentive fees for
fee month
Add the incentive fees earned for all IBPS
tasks as calculated in Step 22-B.
•
24
For the last month of the calendar
quarter: (when earned incentive fees
are payable):
Enter zero.
Then go to Step 25.
•
For the other fee months (i.e., the first
two months of the calendar quarter):
Add the Step 24 amount from the
monthly fee calculation for the
preceding fee month and the Step 23
amount from the monthly fee
calculation for the current fee month.
Then go to Step 27.
Enter Step 24 amount from the monthly
fee calculation for the preceding fee month
25
26
Total incentive fees for
quarter
Add Step 23 and Step 25.
27
Total incentive fees
payable in fee month
For the last month of the quarter:
Enter the amount in Step 26.
For the other fee months (i.e., the first two
months of the calendar quarter):
Enter zero.
PART 3
28
ACC
DETERMINING EARNED ADMINISTRATIVE FEES
Total Administrative
Fees
Add Step 16 and Step 27.
EXHIBIT A – PAGE 56
5. ACC TERM
The initial term of the ACC shall be thirty-six calendar months commencing on the
first day of the month of HUD’s first assignment to the PHA of existing HAP
contracts for covered units for contract administration pursuant to the ACC. (The
same ACC term shall apply for all covered units, whether such covered units are
included in the first HUD assignment of covered units, or are added subsequently.)
HUD may unilaterally elect to renew the ACC for up to two additional twelve month
renewal terms after the initial term. Each such renewal shall be at HUD’s sole
discretion, and shall be exercised by written notice to the PHA of HUD’s election to
renew. HUD must give such renewal notice at least three calendar months before
the end of the expiring term (the initial term and the first twelve month renewal
term).
The PHA may unilaterally elect to terminate the ACC term at the end of the last
month of the initial ACC term, or at the end of any month of the first or second
twelve month renewal term, if the PHA gives HUD written notice of the PHA’s
election to terminate the ACC term at least twelve calendar months before
termination.
6. EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE
The PHA shall not discriminate against any employee or applicant for employment
because of race, color, creed, religion, sex, handicap or national origin. The PHA
shall take affirmative action to ensure that applicants and employees are treated
without regard to race, color, creed, religion, sex, handicap, or national origin.
Such action shall include, but not be limited to, the following: employment,
upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and selection for training,
including apprenticeship.
The PHA shall post in conspicuous places, available to employees and applicants
for employment, notices to be provided by HUD setting forth the provisions of this
nondiscrimination clause. The PHA shall assure in all solicitations or
advertisements for employees placed by or on behalf of the PHA that all qualified
applicants will receive consideration for employment without regard to race, color,
creed, religion, sex, handicap or national origin. The PHA must incorporate the
foregoing requirements of this paragraph in all of its contracts for project work,
except contracts for standard commercial supplies or raw materials, and must
require all of its contractors for such work to incorporate such requirements in all
subcontracts for project work.
ACC
EXHIBIT A – PAGE 57
7. DATA SYSTEMS
7.1. Federal Requirements
The PHA must comply with all Federal data processing and data reporting
requirements applicable to PHA functions under the ACC, including requirements
for Public Housing Agencies described in the Automation Rule (Section 108 of 24
CFR, Part 208 —Electronic Transmission of Required Data for Certification and
Recertification and Subsidy Billing Procedures for Multifamily Subsidized Projects).
See also program records requirements at § 12 of the ACC.
The PHA must have Internet Service Provider (ISP) access for electronic
communication over the Internet with HUD, owners or others. The PHA must
comply with HUD requirements for electronic communication (including
requirements concerning email and other communication over the Internet). The
PHA must comply with HUD requirements for data entry and data transfer over the
Internet.
The PHA must ensure that all electronic data systems are virus free.
The PHA must have the capability to implement changes in data processing and
data reporting procedures to comply with changes in HUD requirements. HUD will
provide reasonable advance notice (by HUD directive to PHAs or otherwise) of
changes in HUD requirements concerning automated data systems and
automated data reporting. HUD will provide such advance notice a minimum of 90
days before PHA compliance will be required.
7.2. Communication with owners
The PHA must have the capability to receive resident certification and
recertification data (form HUD 50059) and voucher data (form HUD 52670)
electronically from owners in a form consistent with HUD reporting requirements
for the HUD TRACS System. The PHA must have the capability, in the form
acceptable to HUD, for communicating errors in HUD 50059 and HUD 52670
submissions to owners.
7.3. Communication with HUD
The PHA must provide HUD with data on HAP contracts, rent adjustments and
payments to owners, contract renewal processing, management and occupancy
reviews, and other documents and information relevant to the PHA responsibilities
outlined in this RFP. The PHA must have the capability to transmit data to HUD
over the Internet as required by HUD.
The PHA must have the capability to transmit HUD 50059 data to the HUD
TRACS Tenant System and HUD 52670 data to the HUD TRACS
ACC
EXHIBIT A – PAGE 58
Voucher/Payment System, and to receive return messages transmitted from
TRACS. The PHA’s Internet access must provide the PHA with the capability to
review the resident and voucher data that the PHA has transmitted to HUD, to
ensure that the data maintained by HUD is correct and consistent with the data
maintained in PHA files.
Resident reporting requirements specified for HUD’s TRACS Tenant System and
voucher reporting requirements specified for the TRACS Voucher/Payment
System are published on the TRACS Documents Page on the world wide web.
The PHA must meet the requirements specified in these documents. (At this time,
the PHA can access the TRACS Documents Page at
http://www.hud.gov/fha/mfh/trx/html/trxdocs.html.)
7.4. Fund transfer and payment
The PHA must have a depository account with a federally insured financial
institution capable of receiving and sending electronic fund transfer (EFT)
transactions. See also depository requirements at § 9b of the ACC.
The PHA must have facilities acceptable to HUD for making timely and accurate
housing assistance payments to owners. The PHA must also transmit budget,
requisition, and year-end settlement data to HUD via the Internet, or as otherwise
specified by HUD.
8. MANAGEMENT CAPACITY AND QUALITY CONTROL PLAN
The PHA must have a detailed quality control plan (QC Plan) that will:
•
Ensure that the contract performance requirements are met;
•
Provide accountability and separation of duties to detect and prevent potential
fraud, waste, and abuse of funds, and
•
Identify processes/procedures to prevent, detect, and resolve conflicts of
interest in accordance with the ACC.
The QC Plan must include, but is not limited to:
1.
A Work Plan including all contract administration services, with a break down
of each task/sub-task. The Work Plan must:
Specify all areas and services that the PHA will review.
Include a timeline (duration, start, finish) the PHA will review areas/services.
Depict the resource name/s and task usage for each task.
ACC
EXHIBIT A – PAGE 59
2.
The name(s) and qualifications of the individual(s) responsible for performing
the quality control reviews and the specific areas/services these individuals
will inspect.
3.
A method to identify performance deficiencies and to take corrective action to
ensure against unsatisfactory performance.
4.
A means to document all quality control reviews and any required corrective
action. The PHA shall establish and maintain files for such documentation
through the term of the ACC. The filing method shall be such that all
information relative to quality control inspections is logically grouped together
and readily accessible. The files shall be the property of HUD and be made
available to HUD upon demand during the PHA’s regular business hours.
The files shall be turned over to HUD within 10 business days after
completion or termination of the ACC.
5.
Workflow and organizational charts that describe the processes and controls
that the PHA will use to implement and operate its technical approach and to
execute the QC plan.
ACC
EXHIBIT A – PAGE 60
EXHIBIT B
COVERED UNITS
Contract No.
ACC
Property Name
EXHIBIT B – PAGE 1
Assisted Units
Contract No.
ACC
Property Name
EXHIBIT B – PAGE 2
Assisted Units
Contract No.
ACC
Property Name
EXHIBIT B – PAGE 3
Assisted Units
Contract No.
ACC
Property Name
EXHIBIT B – PAGE 4
Assisted Units
EXHIBIT C
FUNDING
PHA Fiscal Year ________
Contract Number
ACC
Property Name
EXHIBIT C – PAGE 1
Budget
Authority
Contract Number
ACC
Property Name
EXHIBIT C – PAGE 2
Budget
Authority
Contract Number
ACC
Property Name
EXHIBIT C – PAGE 3
Budget
Authority
Contract Number
ACC
Property Name
EXHIBIT C – PAGE 4
Budget
Authority
Contract Number
ACC
Property Name
EXHIBIT C – PAGE 5
Budget
Authority
Contract Number
ACC
Property Name
EXHIBIT C – PAGE 6
Budget
Authority
EXHIBIT D
PUBLIC HOUSING AGENCY SERVICE AREA
ACC
EXHIBIT D – PAGE 1
EXHIBIT E
PHA Administrative Fee
FY 2000 FMR
ACC
FMR Area
EXHIBIT E – PAGE 1
FMR Area
ACC
EXHIBIT E – PAGE 2
Maximum Basic Fee
Per Unit Per Month
Year 1
Year 2
| File Type | application/pdf |
| File Title | posting.PDF |
| Author | Unknown |
| File Modified | 0000-00-00 |
| File Created | 0000-00-00 |