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OHCS Loses Contract to Administer Project-Based Section 8 Contracts

Following a competitive application process, HUD recently announced new two-year contracts for Performance-Based Contract Administrators (PBCAs) in each state. Oregon Housing and Community Services (OHCS), despite experience and a solid track record as a PBCA, lost the contract and will no longer administer project-based Section 8 contracts, along with other forms of HUD-controlled project-based rental assistance, in Oregon. Contract Management Services (CMS), a division of the Bremerton Housing Authority in Washington, will replace OHCS as the PBCA in Oregon, effective October 1.

PBCAs are responsible for myriad duties related to project-based rental assistance contracts, including renewals and dispersal of payments to property owners. As such, the upcoming change will affect preservation efforts in Oregon, though how and to what extent is not yet known. OHPP will lose valued partners at OHCS and must develop new relationships with CMS staff. OHCS vowed to appeal HUD’s decision, but will still begin planning for the upcoming transition. It is also still possible that OHCS could continue work, in some capacity, as a subcontractor for CMS in Oregon.

With a clear focus on cost cutting, HUD accepted bids that shook up PBCAs across the country and puzzled advocates who fear that out-of-state PBCAs might hamper preservation efforts that HUD strongly supports. While it successfully bid for Oregon and Alaska, as well as retaining Nebraska, CMS lost contracts and will no longer be the PBCA for Utah and its home state, Washington (now to be administered by Wisconsin Housing and Economic Development Authority). Summit Multi-Family Housing Corporation in Ohio was not previously a PBCA in any state, but HUD selected it for Maryland, New Jersey, and New York (the state with the largest volume of project-based units). The current PBCAs in Georgia and Florida, both local, lost their respective contracts, only to be awarded the new contracts for each other’s states. Many other states will also have new PBCAs, with a higher number not located within that state.

A PDF highlighting the changes and including unit totals is available on the Oregon Housing Blog. Click here to more information.

— Posted on 7/07/2011