IBTS has been the sole-source HUD monitoring contractor since 1976 and by joining with Savan, MHARR fears there may be some regulatory abuses arising from “the concentration of excessive, unwarranted, and improper de facto regulatory authority in the hands of a single private contractor.”
The national association that represents independent HUD Code builders feels that this is in violation of a firewall Congress established in the 2000 reform law, citing that “the Secretary shall ensure that separate and independent contractors are retained to carry out monitoring and inspection work…”
Therefore, asserts MHARR, it appears that the contractual relationships established between HUD and Savan, and between Savan and IBTS, were created to circumvent the mandatory requirement for “separate and independent contractors.”
As a result, President/CEO-Elect Mark Weiss said that MHARR fears there might be potential misuse by the awardees of documents, data and/or information exposed as part of the inspection, monitoring, and Subpart I processes, and related discrimination against manufacturers in the supposedly unbiased federal dispute resolution system.
A suspension of all activities related to this matter are called for, says Weiss – who is an attorney – until a full and proper review can be made by HUD’s General Counsel and Inspector General. For more details, click here. ##
Image Credit: (HUD Logo, graphic)
