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FBO DAILY - FEDBIZOPPS ISSUE OF FEBRUARY 12, 2019 FBO #6290
SPECIAL NOTICE

R -- Post Closing Portfolio Management (PCPM) and Surplus Cash Analysis (SCA)

Notice Date

2/10/2019
 

Notice Type

Synopsis
 

NAICS

523920 — Portfolio Management
 

Contracting Office

451 7th Street SW Washington DC 20410
 

ZIP Code

20410
 

Solicitation Number

86543G19Q00006
 

Response Due

2/26/2019
 

Archive Date

2/28/2019
 

Point of Contact

Brenda K Lee, Contracting Officer, Phone 202-402-3504, Fax 202 401-2032, - Brenda K Lee, Contracting Officer, Phone 202-402-3504, Fax 202 401-2032
 

E-Mail Address

brenda.k.lee@hud.gov, brenda.k.lee@hud.gov
 

Small Business Set-Aside

N/A
 

Description

The U.S. Department of Housing and Urban Development (HUD) intends to negotiate and award a sole source contract to MacArthur & Baker International, Inc. (d/b/a MBI Consulting, 7200 Wisconsin Ave Suite 702, Bethesda, MD 20814-4891under the statutory authorities 41 USC 3304 (a)(1) (see FAR 6.302-1) to provide Post Closing Portfolio Management (PCPM) and Surplus Cash Analysis (SCA) for the support HUD-held debt generated by several HUD programs. HUD requires support for HUD's Project Managers (PMs) nationwide in analyzing certain unique loans that have been and will be created and held by HUD under: The M2M Program. Portfolio Re-Engineering Demonstration Program (or "Demo Program") and the Partial Payment of Claim (PPC) Program. The M2M Program was established in the Multifamily Assisted Housing Reform and Affordability Act (MAHRA) was created to restructure the FHA-insured or HUD-held mortgage loans on a large number of privately-owned properties with above-market rents and expiring project-based Section 8 Housing Assistance Payment (HAP) Contracts. The PPC Program is conducted pursuant to authority found at the Code of Federal Regulations (CFR), Title 24, and Section 207.258(b). When the expiring Housing Assistance Payment (HAP) Contracts for a property are determined to be above the market rate, the property owner is required to participate in the Mark-to-Market Restructuring Program in order to receive a new project-based HAP Contract. Generally, as a result of participation in the M2M Program or the Demo Program, the above market rate subsidized rents are reduced to market rate and the existing property debt is restructured to a size supportable by the cash flow generated at the market rate rent level. The expected cash flow is determined by a re-underwriting, which analyzes and evaluates the property's capital needs and operating expenses to ensure that the property can be financially viable and remain in good physical condition based on projected net income at market rents. A partial payment of claim against the Federal Housing Administration (FHA) Insurance Fund is made for any difference between the total sources at closing (the new first mortgage proceeds, together with any required Owner funds and eligible property accounts) and total uses (payoff of the existing FHA-insured mortgage and funding for all eligible uses, including rehabilitation escrows, initial deposit to replacement reserves, approved closing costs, etc.) In the M2M Restructuring process, the partial claim amount is not forgiven, but is captured in a new mortgage note or notes payable to HUD and secured in a subordinate lien position to any new first-mortgage financing on the property. A payment may be due annually on these new notes as defined in the legal documents arising from the restructuring transaction. The payment for each of these HUD-held notes (if required) is calculated at a specific fixed percentage of the property's annual surplus cash and is calculated and shown in the year-end financial statements for a property. NOTE: THIS NOTICE WAS NOT POSTED TO FEDBIZOPPS ON THE DATE INDICATED IN THE NOTICE ITSELF (10-FEB-2019); HOWEVER, IT DID APPEAR IN THE FEDBIZOPPS FTP FEED ON THIS DATE. PLEASE CONTACT 877-472-3779 or fbo.support@gsa.gov REGARDING THIS ISSUE.
 

Web Link

Link To Document
(https://www.fbo.gov/notices/a95de3bad539da4243075a3b53b58eec)
 

Place of Performance

Address: 451 7th Street Wahington, DC

Zip Code: 20810

Country: US
 

Record

SN05217800-F 20190212/190210230003 (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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