Performance-Based Contract Administrators (PBCAs) play a critical role in helping the US Department of Housing and Urban Development (HUD) administer the Section 8 Project-Based Rental Assistance (PBRA) program, which serves nearly 1.2 million families with an annual appropriation of approximately $13.5 billion.

Since 2000, PBCAs have been responsible for performing the requirements of the PBRA program within their assigned jurisdictions. This holistic model of bundling tasks is essential to minimizing risk across the program and ensuring the program is administered
effectively. PBCAs bring the best practices and flexibilities of the private sector into the administration of the PBRA program. PBCAs that are subsidiaries of PHAs in particular bring their experiences as both owners and managers of affordable housing and the best practices of private sector asset management into the administration of the PBRA program.

PBCAs perform critical functions for HUD such as preventing subsidy payment errors, ensuring that the complex regulatory footprint in the program and Tenant Rental Assistance Certification System (TRACS) is followed, which results in timely and proper payment of subsidies to property owners.

PBCAs also oversee and monitor the physical condition of PBRA properties and assist in the administration of Housing Assistance Payment (HAP) contracts with private owners of multifamily housing through the Management and Occupancy Review (MOR)
review process. PBCA MORs focus on and evaluate property security, unit conditions, and property owner preventative maintenance records. PBCA MORs are a critical “on the ground” resource for HUD’s Real Estate Assessment Center (REAC) inspection teams managing extensive inspection workloads. For 10 years (2005-2015), PBCAs took the lead in housing quality follow up
and resolved over 27,000 “Exigent Health and Safety” violations found by REAC inspection teams.

The PBCA MOR reviews have proven to be an additional assessment cross check tool for HUD, and the REAC inspection process is better when coupled with health, safety, and maintenance reviews built into the MORs requirements. PBCA MOR reviews have tangible benefits for property owners and residents; since 2000, PBCA properties have annually averaged REAC scores well above 80 (scores that far exceed 60–the passing requirement).

PBCAs have played a primary role, with HUD, ensuring that emergency COVID relief payments get to residents and property owners. One example is the CARES ACT COVID Supplemental Payment (CSP) program. PBCA experience and expertise made them uniquely capable of disbursing the funds quickly and accurately by adapting to HUD’s needs. Our PBCA members processed thousands of CSP payments and disbursed millions of dollars to owners and residents, stabilizing housing for millions of families across the country.

In late Summer 2020, about five months into pandemic-imposed challenges, HUD badly needed some field presence. In part, the PBCA MORs inspection presence was possible because HUD made two modifications to the MORs process: allowing remote confirmation to determine whether REAC deficiencies were corrected and allowing property owners to submit resident files electronically for PBCA review.

PBCAs are a critical technical assistance resource to property owners and help boost participation in the PBRA program. One of the main challenges to PBRA property owners is ensuring compliance with HUD’s complex regulations, a daunting task for those unfamiliar with the inspection, reporting, and oversight requirements of the PBRA program. PBCAs conduct critical on-site management and occupancy reviews, including timely and accurate contract renewals and critical rent adjustments. PBCAs also review, process, and pay monthly vouchers submitted by owners. They also review HAP contracts with owners. This is complicated, time-consuming work and PBCAs ensure that it is done efficiently and effectively to minimize impact on property owners.

Additionally, PBCAs are integral to property owners when needing to deal with property damage, unpaid rent, or extended vacancies. PBCAs help PBRA property owners navigate HUD PBRA rules and regulations, to ensure both owners and residents are compliant. They also assist residents with health and safety issues at the property, a benefit to owners in addition to residents.

PBCAs provide a unique and critical link between residents and their property management not seen in other programs. They work closely with residents, their representative associations, and property owners to promote safe, habitable homes and communities. This work was particularly critical during the pandemic, when REAC inspection schedules were compromised.

Most PBCAs establish “hotlines” and “comment” lines to encourage residents to communicate on an “as needed” or “as desired” basis. These hotlines are established solely on a voluntarily basis and are a value added service beyond the specific task requirements in their Annual Contribution Contract (ACC).

The resident hotlines allow PBCAs to work in real time with property managers to deal with severe health and safety issues, as well as helping them to prioritize issues that may require attention soon. Resident hotlines resolve resident issues quickly, taking the burden of following-up with property management off residents when maintenance requests are outstanding.

The PBCA hotlines were a critical tool for residents during COVID-19, allowing them to access assistance with maintenance issues via phone and potentially resolve problems without the need for in-person interaction. The following example demonstrates the effectiveness of PBCA hotlines:

MOLD & UNIT TRANSFER REQUEST

Resident reported that the resident’s property management had not addressed issues with mold, basement unit leak, and
her request for unit transfer due to asthma concerns. The resident had been going back and forth with management for months regarding her concerns. The majority of the issues stemmed from a leak in the ceiling and then the water heater.

The PBCA worked with property management and the resident to ensure leak was addressed, the unit was inspected and was treated for mold. Cosmetic repairs were also completed. In addition, the resident completed and was approved for Reasonable Accommodation in request for a unit transfer from the basement unit to a higher floor. The resident closed the inquiry, stating she is “happy with all that has taken place.”