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HUD has released its NOFA for the “FY 2012 Performance Based Contract Administration (PBCA) Program for the Administration of Project Based Section 8 Housing Assistance Payments Contracts.”


The NOFA provides applicant information, submission deadlines, funding criteria and other requirements for this Program including the availability of an annual contributions contract (ACC) with a public housing agency (PHA) for each of the 42 states for which an ACC has not previously been awarded, to provide for the administration of project-based Section 8 HAP contracts for Section 8 projects in those states.  There will be one award per state.  The ACC will have a term of 24 months unless HUD decides to extend the contract.  HUD anticipates that ACCs awarded under this NOFA will become effective on October 1, 2012. The application deadline for the NOFA is 11:59:59 p.m. Eastern Time on April 10, 2012.




HUD has included some major changes in the NOFA. There are still 8 performance-based tasks** required of PBCAs, but under the new ACC, the protocol for MORs will change.  The reviews will only be required for projects with an “Unsatisfactory”, “Below Average”, and “Satisfactory” rating assigned to the last review under the new risk-based MOR approach that HUD proposed in its FY 2013 budget.  No MORs will be conducted for projects with an “Above Average” and “Superior” rating assigned to the last review during either 12-month period of the ACC Term.  MORs will still be required for all Mark-to-Market projects without regard to the rating assigned to the last review.


The NOFA also makes it extremely difficult for applicants to compete outside their home states. HUD will consider applications from out-of-State applicants only for States for which HUD does not receive an application from a legally qualified in-State applicant. Receipt by HUD of an application from a legally qualified in-State applicant will result in the rejection of any applications that HUD receives from an out-of-State applicant for that state. All applicants will be required to submit a reasoned legal opinion (RLO) as part of the application process demonstrating that the applicant is legally eligible to serve as PBCA in the State for which it applies. However, out of-State applicants must also include with their RLO a Supplemental Letter, signed by an attorney authorized to practice law in the State for which it applies, that establishes that nothing in the laws of the State for which the applicant is applying in any manner prohibits the applicant, although formed under the laws of a sister State, from acting as a PHA in the State for which it is applying.


NAHMA has concerns with a number of the provisions in this NOFA.  We are reviewing it in consultation with our PBCA Subcommittee to determine potential next steps. 


The NOFA and supplemental information can be accessed through the webpage,;jsessionid=vRgqPhvDGL6mbcB3GXlSJMhQMBdX2GzWlkFjvDRPpTgZ6n8sJQhy!-677433669, or the HUD contract administration webpage,


**PBCAs awarded under this NOFA will be responsible for the following performance-based tasks (PBT) under the ACC:


·         Management and Occupancy Reviews (MOR);

·         Adjust Contract Rents;

·         Review and Pay Monthly Vouchers;

·         Renew HAP Contracts;

·         Tenant Health, Safety, and Maintenance Issues;

·         Administration – Monthly and Quarterly Reports;

·         Administration – Annual Reports and Certifications; and

·         Annual Financial Reports – PHA Fiscal Year End.

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