NOTICE TO INDUSTRY PARTNERS 1.0 DESCRIPTION The United States Department of Agriculture (USDA) Rural Development (RD) is issuing this request for information (RFI) to solicit feedback from industry and potential sources related to USDA RD’s Single Family Housing Appraisal Services Nationwide and is for market research purposes. The applicable North American Industry Classification System is 531320, Offices of Real Estate Appraisers, and the Small Business Size Standard is $8.0 million. THIS IS A SOURCES SOUGHT NOTICE, REQUEST FOR INFORMATION (RFI). This is not a Request for Proposal (RFP) or Request for Quote (RFQ). This request for capability information does not constitute a RFP or RFQ and does not commit the Government to contract for any supply or service, whatsoever. Further, the USDA, RD is not at this time seeking proposals or quotes and will not accept unsolicited proposals or quotations. Submission of any information in response to this market survey is purely voluntary. However, responses received will assist the Government, in part, with a set-aside decision, if a Solicitation should be issued in the future. The government assumes no financial responsibility for any costs incurred associated to this request for capability information. Not responding to this sources sought does not preclude participation in any future RFP or RFQ, if any is issued. Potential offerors are responsible for monitoring government websites such as GSA or SAM for any potential opportunities. Responses do not guarantee award nor exclude/include your company in any potential acquisition process. No feedback or evaluations will be provided to companies regarding their submissions. This RFI is being used as a Market Research tool for informational purposes and for preliminary planning purposes to identify potential sources that may possess the expertise, capabilities, and/or experience to perform the anticipated requirements and to obtain current market information in response to the RFI questions. Small and large businesses are encouraged to respond. If you have responded to similar RFIs prior, please note that this is a new RFI, and a response is required if you want to submit your capabilities. 2.0 BACKGROUND The USDA RD is a mission area of USDA which provides support and services that improve the quality of life in rural communities through our Rural Housing Service (RHS), Rural Business and Cooperative Service (RBS) and Rural Utilities Service (RUS). RD programs help rural communities build or improve housing, community facilities, and extend utilities, including water, electricity, and telecommunications services. RD programs also create jobs by funding the growth and creation of rural businesses and cooperatives. RD provides assistance through direct or guaranteed loans, grants, technical assistance, research, and educational materials. RHS provides loans to low and moderate-income applicants located in rural geographic areas to assist them in obtaining single family housing through multiple programs. A limited number are larger than one acre of land with the home. The Single-Family Housing Direct loans (502 Program) are located in each of the 50 states and U.S. territories that include Puerto Rico, Guam, Virgin Islands, and Western Pacific. The objective of the USDA, RD regarding this RFI is to obtain information from industry capability statements and RFI responses to questions on property appraisal processes, current lead time and availability of qualified personnel to provide appraisal services. Please see Exhibit A Tasks for details on the types of appraisal requirements. 3.0 REQUEST FOR INFORMATION Interested parties, who consider themselves qualified sources that can provide property appraisal services in rural, remote rural and non-rural areas are invited to provide a written response to the questions in Exhibit B based on review of Exhibit A, attached to this announcement, and electronically submit your responses to Charles Spicer,
[email protected] no later than 12:00pm EASTERN TIME (ET) on May 27, 2022. No extensions to the delivery date will be granted. 3.1. Responses Submission Instructions : Interested parties are encouraged to respond to this sources sought/RFI. All communications shall be in writing and submitted electronically via email to Charles Spicer ,
[email protected]. No information will be taken by phone. Written responses should be delivered in MS Word (.doc) and Portable Document Format (PDF) and are due no later than 12:00PM EASTERN TIME May 27, 2022. Your entire submission should be limited to 5 pages (8x11), single spaced, 12-point font minimum and should be separated by Sections. Proprietary information, if any, should be minimized and MUST BE CLEARLY MARKED with (PR) nomenclature at the start of each paragraph. Please be advised that all submissions become Government Property and will not be returned. Do not submit a cost proposal. Section I- Please provide the following information in your submission: Tab A: Company name; mailing address; physical address; point of contact; telephone number; fax number; e-mail address; DUNS number/SAM Unique Entity ID; NAICS code; company business size (if small, indicate type); and if applicable, GSA Federal Supply Schedule, SIN number, and GSA contract number. Tab B: Scope of services your company currently provides. Section II- Your capability statement should provide responses to the questions listed in Exhibit B of this document and any additional information to substantiate your demonstrated capability to deliver property appraisal services in rural, remote rural and non-rural areas outlined in Exhibit A. Fax submissions will not be accepted. Responses received after this date and time may not be considered in the Government's market research. Respondents are advised that the Government is under no obligation to acknowledge receipt of the information submitted. Respondents will not individually be notified of the results of the Government assessments and should not anticipate feedback with regard to its submission. 4.0 SUMMARY The information provided in the sources sought is subject to change and is not binding on the Government. The USDA, RD, has not made a commitment to procure any of the services discussed, and release of this sources sought/RFI should not be construed as such a commitment or as authorization to incur cost for which reimbursement would be required or sought. Exhibit A Tasks General: The United States Department of Agriculture (USDA), Rural Development (RD), Servicing Office (SO), Default Management Branch has a need for the following services: Providing nationwide American Recovery Program (ARP) and recapture residential appraisal (valuation) services, and written reports for estimates of opinions of market value and/or liquidation values for single-family homes and some vacant lots in rural areas. The function of the appraisal reports will be based on one of three value types and definition to be Market Value, Disposition Value, and/or Liquidation Value. Purpose: This effort will assist in determining and reporting to the USDA the appraisal value of single-family properties based on one of three value types (Market Value, Disposition, or Liquidation Value) to be communicated in each individual assignment or engagement. The appraisal will assist the USDA in their evaluation of inventory property and existing loan servicing. Scope: To support this program, USDA Rural Development, SO, Default Management Branch requires the services of qualified firm(s) to provide appraisal services in accordance with Title 7 Code of Federal Regulations (CFR) Part 3550 and Handbook-1-3550, Chapter 5, Section 5 ''Appraisals" which may be located at: https://www.rd.usda.gov/resources/regulations under the Resources tab. Task 1. Deliverables Task Expected Timeframes. Appraisal assignments will be classified in one timeframe category at the time of engagement. Standard timeframe ARP appraisal assignment requests will be completed and delivered within 14 business days of the appraisal order being received. Subsidy Recapture Appraisal assignment requests will be completed and delivered within 14 business days AFTER expiration of the submission of the capital improvements information. Task Appraisals. General information and requirements for Real Property Appraisals. Task Requirements for Appraisers. All real property appraisers performing appraisals under this program shall be either State Certified Residential or General licensed appraisers in the state where the credential was issued, in conformance with Title XI of the Financial Institution’s Reform, Recovery and Enforcement Act of 1989 (FIRREA). Task Standards. All appraisals must comply with the most current edition of the Uniform Standards of Professional Appraisal Practice (USPAP), USDA Rural Development appraisal requirements per regulation and policy as set forth from time to time, and any and all assignment condition requirements of the United States Department of Agriculture, Rural Development. Task Property Access and Observation. Most loan recapture and inventory/vacant property appraisal assignments will require an interior inspection. USDA may allow the assignment to be converted to an Exterior Only Inspection Residential Appraisal. USDA requires that the appraiser’s reasonable efforts to gain access be documented in the appraisal report. Task Appraiser Independence. The appraiser engaged for the assignment shall develop and report an independent opinion of value. No party shall attempt to influence the results, opinions, or conclusions of the appraiser. Task Delivery of Real Property Appraisal Reports. Completed appraisal reports shall be delivered electronically in a digital signed and secured portable document format (pdf). Task Opinions of Value "As-is'' or "Subject to". Individual appraisal assignment engagements may request a value opinion of the subject property in an ''as is" condition and/or ''subject to'' any repairs listed by the USDA in the assignment order. Task Approaches to Value. The USDA requires that the appraiser consider and develop all approaches that would produce a credible indication of value and credible result for the assignment. As an assignment condition, the USDA requires that the appraiser develop, report, and reconcile the Cost Approach to value in assignments where the actual age of the subject's improvements is indicated to be less than one year by sources deemed most reliable by the appraiser. Task Analysis and Value Opinion that is Consistent with the Definition of Value given for the Assignment. The USDA requires that the analysis for all approaches to value be consistent with the type and definition of value provided by the client for the assignment. Task Opinion of the Subject’s Site Value. The USDA requires that the appraiser develop and report an opinion of value for the subject's site only (unimproved) based on the definition provided by the client and report the opinion with supporting summary analysis in the Cost Approach section of the primary assignment report. Task Estimated Remaining Economic Life of the Subject’s Improvements. The USDA requires that the appraiser estimate the remaining economic life of the subject's improvements (the remaining number of years that the subject's improvements will contribute value to the land) and report this estimate in the Cost Approach section. Task 2. Real Property Appraisal Reporting Assignment Conditions Task Describing and Reporting the Observed Condition of the Subject Property. The client will rely heavily on the reported physical condition descriptions, photographs, and characteristics of the subject property to make decisions. The client requires a higher level of detail in the report's description of the subject's physical condition and observed deferred maintenance. The USDA requires that the appraiser be objective and report in enough detail to adequately describe the actual physical condition observed, in a manner that will be meaningful and not misleading. Task Appraisal Reporting Options, Forms, and Addendums required by the Client. The client requires appraisal reports comply with the most current edition of USPAP, are reported in a summary appraisal format, and are presented in compliance with the Uniform Appraisal Dataset (UAD). The specific reporting form types adopted and required by the USDA will be communicated in each appraiser assignment engagement. Common appraisal industry reporting forms that may be requested by the client include: NOTE: Forms may be updated based on changes to industry standards/option Fannie Mae URAR (Form 1004) – this form can be found at the following websites: https://www.fanniemae.com/content/guide_form/1004.pdf Fannie Mae Exterior-Only Inspection Appraisal Report (Form 2055) - This form can be found at the following websites: https://fanniemae.com/content/guide_form/2055.pdf Fannie Mae Manufactured Home Appraisal Report (1004c) - (FNMA Form 1004C/FHLMC Form 708) have been combined into one appraisal report. The two documents will be one and the same. This form can be found at the following website: https://www.fanniemae.com/content/guide_form/1004c.pdf Fannie Mae Individual Condominium Unit Appraisal Report (Form 1073) - FNMA Form 1073/FHLMC Form 465) has been revised; this property type is no longer indicated on the URAR. The revised form excludes exterior inspections. Appraisals with interior inspections for condominiums should be completed on this form. This form can be found at the following website: https://www.fanniemae.com/content/guide_form/1075.pdf General Purpose Residential Summary Appraisal Report Form (GPAR or GP-Res) Task Supplemental appraisal report addendums required by the USDA: Floor plan or Sketch Addendum Subject and Comparable Sale Photo Addendums (to include interior photos of subject and all improvements located on the subject's site) Location Map Addendum Supplemental Addendums that include copies of data or listing sheets for the subject and comparable sales utilized for analysis. Capital Improvements Addendum (if applicable) Task 3. Systems Task Automated Interfaces. The Contractor shall have an on-line system that provides remote access directly to its data base from Government issued computers located at USDA, Rural Development offices or remote telework locations. It is anticipated that these computers will be located at the SO Default Management Branch operations in St. Louis, Missouri. The Contractor's on-line system shall have a security system that prevents unauthorized access. The Contractor shall identify for USDA any entities that provide access to the data base via the on-line system. Task Documentation. The Contractor shall provide an online link of User documentation that will be necessary for USDA staff to effectively utilize the on-line system. The Contractor shall provide automated updates as changes occur and shall be delivered to USDA concurrently with deliveries to your client base. Task 4. American Rescue Plan Refinance Appraisals. Task Type of Appraisal. The type of appraisal will mirror recapture appraisal. If the homeowner submits capital improvement and/or major deficiencies at time of order (provided by the field office to a portal provided by the contractor), significant improvements and/or major deficiencies are found during the inspection the type of appraisal will be a Full Market Value Appraisal (1004). If there are no capital improvements submitted and/or major deficiencies or no significant improvements the type of appraisal can be an Exterior only or Alternative Valuation as allowed by the local area and the RD field office. Task Timeframe. The vendor will contact the homeowner prior to scheduling an appointment if required, based on the information provided by the Field Office in the vendor portal. The Vendor will make a consistent effort during a full week to contact the homeowner to schedule an interior inspection. (Once an appointment is made, an Interior Appraisal can commence. The vendor will contact the homeowner a minimum of 3 times on 3 different days at varying times during the first week after acceptance of the order to set up an interior inspection. If no contact can be made the vendor will inform USDA through current methods. Once accepted with all documents, any appraisal type, will be delivered to USDA within 14 business days. Task Acknowledge of Assignment. Once all information is submitted the Vendor will have 3 business days to accept. The contractor will provide through electronic communication of missing items/documents to USDA. End of Tasks Exhibit B RFI Questions The below RFI questions are based on the following definition for rural areas. Rural areas are defined as: Open country or any town, village, city, or place, including the immediate adjacent densely settled area, which is not part of or associated with an urban area and which: Has a population not in excess of 2,500 inhabitants; or Has a population in excess of 2,500 but not in excess of 10,000 if it is rural in character; or Has a population in excess of 10,000 but not in excess of 20,000, and- Is not contained within a Metropolitan Statistical Area (MSA); and Has a serious lack of mortgage credit for lower and moderate-income families as determined by the Secretary of Agriculture and the Secretary of Housing and Urban Development. Any area classified as ‘‘rural’’ or a ‘‘rural area’’ prior to October 1, 1990, and determined not to be ‘‘rural’’ or a ‘‘rural area’’ as a result of data received from or after the 1990, 2000, 2010, or 2020 decennial census, and any area deemed to be a ‘‘rural area’’ at any time during the period beginning January 1, 2000, and ending December 31, 2020, shall continue to be so classified until the receipt of data from the decennial census in the year 2030, if such area has a population in excess of 10,000 but not in excess of 35,000, is rural in character, and has a serious lack of mortgage credit for lower and moderate- income families. Remote rural areas are identified by the State Director and are defined as areas with these types of characteristics: Scattered population; Low density of residences; Lack of basic shopping facilities; Lack of community and public services and facilities; and Lack of comparable sales data. RFI Questions: If unable to respond in full to all questions, please provide answers to the best of your ability where data is available. Does your company provide nation-wide (including US territories) rural area appraisal services? If not, what states do you not have coverage in? Provide examples of your experience in areas that have less than 500 homes? How often do you service these areas? Please provide the number of appraisers available to service all US states and territories. Provide which counties are not covered in entirety. What sources does your company use to find appraisers? Provide examples. What is your plan of action when appraisers are hard to source in a particular area? Provide examples. What is the number of appraisals your company has capacity to complete and deliver per month? Provide an organization chart showing ALL positions within your company. If any are vacant provide your plan of action to fill those positions. From the time an appraisal order is received, what is your standard delivery timeframe (in days) to deliver a completed appraisal report in the below areas? On average, how many appraisals do you process per month in each of these areas? Please provide quantity by month. Rural areas Non-rural areas Remote rural areas Please provide any geographic areas where appraisal report delivery times are in excess of the standards provided in Exhibit A. What are the delivery timeframes for these longer lead time areas? Describe challenges in today’s market that may be contributing to these longer lead times. Which end to end software system do you use to manage property appraisals and how long has this system been in place? What status information is provided to your client during the appraisal process? What steps are taken to ensure that appraisals are delivered timely? Are incentives provided to appraisers during times of high demand? If so, please explain. What is your track record of providing timely payment to appraisers? What minimum information is required from the client in order for your company to assign an appraisal? What method of delivery from the client is required (SFTP, portal data entry or other)? What are non-government lenders getting for appraisal turn times? Are you aware if this is less than what RD is seeing for an area? If non-government lenders are seeing faster appraisal turn times, what is the reason, if known (i.e., are premiums or other incentives being paid)? If known, how are RD appraisals viewed in comparison to non-government lender appraisal requests? Are there any reasons why potential appraisers would be less inclined to do RD work? If your company utilizes AMCs, do your AMCs have any increased challenges acquiring appraisers and if so, how do you or your AMCs incentivize more appraisers to sign on with these AMCs? End of Questions