Latest Development in the Section 8 PBCA Contract Litigation

On April 20, 2015, the U.S Supreme Court denied HUD’s request for a review of the Federal Court of Appeals decision in this case. As you may recall, the Federal Court of Appeals ruled in favor of the appealing PBCAs regarding the proper procurement methodology for rebidding PBCA contracts. Because the lower court’s decision stands, the industry expects HUD to rebid the contracts in the near future. However, no formal timeline or announcements have been released thus far.

Assuming HUD does introduce a new rebid, it must adhere to the Competition in Contracting Act. This will result in a very different request for proposals. In the interim, current PBCAs in all states will continue acting in their current capacities- renewal contracts, processing rent adjustments, paying monthly vouchers, and handling incoming tenant inquiries. Those performing Management and Occupancy Reviews in uncontested states will continue to do so. HUD has not announced any changes regarding the reinstatement of Management and Occupancy Reviews during the continuation of these interim contract extensions.

PMCS will continue to post updates as further information becomes available.