Sun Jan 29 5:15:26 EST 2023
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HUD Back Tracking: BLB and MMREM May Have To Recert HUD M&M 3.5

The drama on the US Department of Housing and Urban Development’s (HUD) Marketing and Management (M&M) 3.5 Contract may have finally come to a head. Since December, 2011, Craig Karnes, Director of the HUD M&M, has been recalcitrant to effectively take the M&M into the 21st Century. Partisan politics and favoritism have reigned supreme and are best exemplified within the HUD 3.5 Asset Management (AM) fiasco. We are hearing HUD is going to back track and potentially force recertification to, at minimum, December, 2012, on those participants in the best bid selection process on the M&M 3.5. The biggest problem is that all participants relevant are under a Gag Order. That is why Foreclosurepedia is here to bring transparency.

The biggest problem; the genesis of all of the litigation to date against BLB Resources and Matt Martin Real Estate Management (MMREM) has been that when Karnes, by and through advice from the HUD Procurement Law Division, began their march to stream Contracts to BLB Resources and MMREM, he refused to recertify both companies under the Small Business definitions.

Karnes, of all people, should have known better. Coming from the military contracting side; the US Army, the standard operating procedures were to recert companies upon the Awarding of Contracts.

To say that Craig Karnes’ actions, on behalf of HUD as Director of the M&M, are odd is an understatement. The Protests, to date, have predominately revolved around the fact that the ONLY way BLB Resources or MMREM qualified was to not include almost an ENTIRE year of financials each had amassed. In addressing this, many of the truly Small Businesses filed Protests. AMRE‘s dismissal at the US Government Accountability Office (GAO) level was most interesting.

In the Instant Case I would bet that HUD has ordered Karnes, against his will in my opinion, to recert BLB Resources and MMREM. What is really going on? Maybe folks ought to call Craig Karnes, if you can ever get through, and ask him! Maybe folks ought to actually reach out to their Representatives and have them make a Congressional Inquiry — the Senators and Congresspersons actually like to do this as it makes them look good in the media — and ask why it is that HUD and Craig Karnes are being given free reign, in my opinion, to destroy the very Industry wherein Contractors and Brokers are paying the heaviest dues.

The reason that the recertification process is so important upon ANY US GOVERNMENT CONTRACT is that there are US Tax Dollars set aside for Small Businesses. The entire debacle Craig Karnes oversaw on this HUD M&M 3.5 mess speaks volumes about how the US Department of Housing and Urban Development, under the leadership of HUD Secretary Shaun Donovan, thumb their noses at the Obama Administration. Fiefdoms are rarely impacted by that which the President of the United States directs to be done. In this specific case, though, we have a Direcor of M&M, Craig Karnes, whom had first hand knowledge from his Contracting days over with the Department of Defense and knew the impact of not recertifying BLB Resources and MMREM. Did Karnes receive perks? I don’t know. Did he receive orders above his pay grade? I don’t know, but if so that would subvert the very office of Director and violate his Oath of Office.

For the ney sayers, those folks whom feel business as usual and Craig Karnes are GOOD for Small Business, take a look at the US Government’s assessment of BLB Resources. Curious about MMREM? Here are their numbers.

To complicate things even more and I have absolutely no doubt that Craig Karnes, HUD M&M Director is aware of this, the volumes which were originally bid upon have been depleted in many areas. How does this translate? Well, by HUD attempting to create an environment of favoritism they cut the very throats of the Small Businesses they allegedly were mandated to assist.

Today, it is discretionary for Craig Karnes. Hopefully, the far too cozy relationship between Karnes, as HUD Director of M&M, and the LARGE Property Preservation Industry Companies, will come to an end. Hopefully.

Let’s not beat around the bush. Karnes and HUD have had an extended period of time to enrich Big Business. Is this a direct attack on Karnes? You bet. Time and again, Karnes has had the opportunity to directly impact the plight of both Small Business and the very Contractors and Brokers whom do the real work in the trenches. The recent A2Z Field Serice (A2ZFS) Vendor Fraud Policy which was both unconstitutional and violated civil rights is a classic case-in-point. In this case Karnes and Meishoma Hayes, HUD Washington DC, ensured that protection would be given to A2ZFS. Time and again, Karnes and HUD turned their back upon the very mandates that the Obama Administration ordered to ensure that US Taxpayer dollars went to Small Business.

It is time for both Brokers and Contractors to unite and align upon a Common Goal. The legalization of the HUD Contract Process; the public identification of those Companies and their US Government Cheerleaders whom are attempting to subvert the fundamental pillars of both the free market economic system and the Constitution of the United States, must be brought to light!

The entire HUD M&M badly needs both a new Director and an injection of legality. A Congressional Investigation is warranted, in my opinion, to take a look at employee bank accounts and precisely what property they own.  I hate to think that HUD has become co – opted by Big Business; however, I have no other explanation. It boils down to why not require recert; recert like each and every other aspect of federal contracting OTHER THAN HUD, when it was a legally available option? Whom might be co – opting or whom might have been co – opted I do not know. Maybe the System is simply so broken that it is beyond repair. It definitely deserves the special attention of the Obama Administration.

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