42 States still do not have approved Performance Based Contract Administrators (PBCAs) for the review of Section 8 properties. PBCAs in these states have no authority to conduct any type of Management & Occupancy Review (MOR)- even voluntary or “informal” reviews. However, there have been reports that several PBCAs have asked properties to participate in these informal reviews. If you are in one of the states where PBCAs are not approved to conduct MOR reviews, do not agree to any type of review by a PBCA.
Although HUD extended all PBCA existing contracts in February 2014 (including those in the 42 contested states), the U.S. Court of Appeals ruled in March that HUD is not in compliance with federal procurement laws, effectively putting existing contracts on hold. Due to this ruling, none of the PBCAs in the contested states may conduct any type of MOR – including voluntary MORs. All PBCAs have been notified of this prohibition by HUD, so they should no longer be contacting properties for informal or practice reviews.
HUD itself may conduct MOR reviews for any of its properties, at any time, in any state. Also, PBCAs in the 11 uncontested states and territories may continue to perform MORs as usual. The 11 uncontested areas are:
Iowa
Maine
Minnesota
Montana
New Hampshire
North Dakota
South Dakota
Vermont
Wyoming
Puerto Rico
U.S. Virgin Islands