The U.S. Department of Housing & Urban Development Office of Multifamily has announced that it is in the process of reinstating the practice of conducting Management and Occupancy Reports. MORs are conducted in order to assess management performance and property compliance with HUD regulations. MORs property inspections will be conducted by the 42 existing Project-Based Contract Administrators as part of their amended interim contracts with HUD, mostly likely starting on a limited number of properties.
HUD has indicated it has developed a methodology to prioritize inspections for high risk properties. The current PBCAs have been given notice by HUD and physical inspections will be paid for out of the PBCA budget authority. Once the list of properties to be inspected in finalized, affected owners will be notified and physical inspections will begin. It is unclear at this time when owners will be notified and when inspections will begin.
MORs were temporarily suspended in 2011 and have not been reinstated as a result of a lengthy and complicated lawsuit relating to HUD’s attempt to change how it procure its PBCA contracts.
As additional details become available about the timing and methodology of this process, NH&RA will share them.
