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HUD Monitoring Contractor

In an article I recently read, Mark Weiss, President & CEO of the Manufactured Housing Association for Regulatory Reform (MHARR) raises his concerns about the HUD Monitoring Contractor.  Weiss’s goal is to demonstrate to consumers and federal regulators that the 2000 HUD reform law aimed at making homes more affordable and accessible is not being followed.  HUD’s inability to adhere to the reform law is, as Weiss argues, a direct result of the HUD Program’s contracting system which over the years has become excessive, unchecked, and expensive for State partners, the industry, and consumers.

As the HUD program currently works there is a privately operated Monitoring Contractor hired to oversee other privately owned third party inspection agencies.  In a perfect world this monitoring contractor would understand the HUD code and contract inspection agencies that can inspect homes and ensure their HUD code compliance.  Weiss claims that this perfect world does not exist.

The same Monitoring Contractor, though sometimes operated under different corporate names, has been the only Monitoring Contractor for the HUD code since its inception in 1976.  Do to its long running oversight of the HUD code this privately operated agency has become highly profit driven, for itself and for the other third party agencies it contracts for inspections.  Weiss argues that the Monitoring Contractor circumvents HUD’s consensus committee and has added new regulations and inspection policies not originally found in the HUD code.  These new regulations have become a time consuming financial burden on manufacturers while being extremely profitable for the Monitoring Contractor and the inspectors it hires.

In 2012 the MHARR under the Freedom of Information Act requested HUD to provide documentation showing the roles and responsibilities of the Monitoring Contractor.  In his article, “Monitoring Contractor’s Domination of Federal Program Must End”, Weiss sites 17 different responsibilities of the Monitoring Contractor that illustrate the power and influence it has over HUD.  Also the documentation stated that the Monitoring Contractor’s latest contract with the HUD Program is a 5 year 25+ million dollar contract.

Weiss and the MHARR have been lobbying against HUD’s conduct in hiring a monitoring agency for many years.  Weiss views the current relationship between HUD the Monitoring Contractor & third party inspection agencies has become an abusive, profit driven operation rather than a uniform way of ensuring consumer safety.

October 14, 2015 Posted by | General Information | , , , , , , | Leave a comment