Below Market Rate Housing Administration Services

Below Market Rate Housing Administration Services

The City is issuing this Request for Proposals (“RFP”) for Below Market Rate (“BMR”) Housing Administration Services to support the City with the following tasks (a) BMR Program General Administration, (b) BMR Ownership Program Services, (c) BMR Rental Program Services, (d) BMR Program Inventory and Recordkeeping, and (e) evaluation of the existing program and implementing program improvements. The City will prefer proposals which do not to exceed $175,000 per year. The City may consider additional funding up to $225,000 per year total for specialized services, such as legal representation for compliance cases.

The City of Campbell is in the West Valley area of Santa Clara County and encompasses 6.35 square miles.  The City was founded in 1887 and incorporated in 1952 as a general law city.  As of May 2021, the City’s population was 42,221. Campbell operates under a Council/Manager form of government and is organized into six departments - City Administration, Recreation and Community Services, Finance, Community Development, Police, and Public Works. Fire services are provided by contract with the Santa Clara County Fire Department.  The City provides library, animal control, solid waste collection and recycling, and storm water management services via Joint Powers Agreements (JPA’s).

The intent of this Request for Proposals is to select a service provider to provide Below Market Rate Housing Program Administration services as part of the City of Campbell’s existing Below Market Rate Housing Program. The Below Market Rate Housing program consists of housing units produced because of the City’s inclusionary housing ordinance and density bonus housing program. There are currently 86 BMR ownership units and 51 BMR rental units, with additional units in the entitlement and construction pipeline.

The City will make available any and all materials and data at their disposal to support data gathering and research required in the RFP.

The City is looking to contract with a service provider or consultant that can help administer the Below Market Rate Housing Program in City of Campbell. The City will consider different service models from firms with demonstrated experience in BMR program administration such as independent consultant services as well as city staffing services.

Below Market Rate Housing program Administrative Priorities

• Coordinating with the City on implementing the City’s Inclusionary Housing and Density Bonus ordinances.
• Manage the sales and rental process for both new and existing units in the City’s BMR portfolio.
• Performing annual compliance monitoring to ensure that all properties are in compliance with the City’s BMR Program Guidelines.

The scope of work outlined below illustrates the specific services requested.

Project tasks shall include, but are not necessarily limited to, the following described below.  If the firm believes additional tasks are warranted, they must be clearly identified in the service proposal. Service providers responding to this RFP shall be prepared to begin services no later than July 1, 2025.  The project consists of furnishing all labor, materials, supervision, and travel necessary to complete the tasks outlined below.

The City’s Inclusionary Housing Ordinance ( Campbell Municipal Code Chapter 21.24 ) is a necessary part of the City’s efforts to meet its 2023-2031 Housing Element goals and its region wide affordable housing obligations. Through the Inclusionary Housing Ordinance, at least 15% of the units in a new housing development of five or more units must be restricted to low- and moderate-income households. The Density Bonus Ordinance ( Campbell Municipal Code Chapter 21.20 ) furthers the City’s goals for affordable housing by providing incentives to developers for the production of housing for very low-, low- and moderate-income households, in compliance with State Law. The City’s BMR program requires long-term compliance monitoring and program administration.

In accordance with all applicable Federal, State and local laws, the contract for BMR Program Administration services will include, but is not limited to the following:

Task 1: General Program Administration

1. Consultant will be the primary contact to the BMR Program and will handle all inquiries and correspondence from applicants, current BMR participants and property managers in buildings with units restricted under the BMR program.
2. Consultant will advertise the BMR program, as needed, to solicit buyers and renters for available units and establish an eligibility list.
3. Consultant will complete the initial set-up of the BMR program within 60 (sixty) calendar days from the contract kick-off meeting
4. Consultant will develop and distribute information materials about the program to residents and property owners.
5. Consultant will create and maintain a BMR program website presence that will link to the City’s housing website.
6. Consultant will schedule monthly meetings with City staff to report on Program administration activities.
7. Consultant will partner with the City to revise or create legal templates for BMR Program documents including, but not limited to: the Developer Affordable Housing Agreement, Resale Restriction Agreement and Deed of Trust.
8. Consultant will be responsible for working with developers with an Inclusionary Housing and/or Density Bonus obligation to prepare an Affordable Housing Agreement prior to the issuance of building permit.
9. Consultant will develop and implement a community outreach plan to advise to BMR applicants, current BMR participants and Property Managers/Owners about services available. The plan should include a variety of outreach methods, such as:
   1. Public meetings
   2. One-on-one meetings
   3. Educational materials
   4. Social media campaigns
10. Consultant will maintain an updated database of all first-time homebuyers, Redevelopment Agency (RDA) and other housing loans and will work with the City to process all paperwork and legal recordings required when first-time homebuyer loans and/or RDA loans are paid off or refinanced (as needed basis).

Task 2: BMR Ownership Program

1. Consultant will manage the entire sale process from advertising of available units to completing the closing on the BMR unit.
2. Consultant will prepare and maintain the sales schedule for City approval.
3. Consultant will ensure that each application is complete, verify eligibility, and confirm preference priorities.
4. Consultant will enter applications into a lottery system, factoring in appropriate preference criteria.
5. Consultant will be available to answer any questions regarding the BMR program and will help facilitate escrow closing, including the recordation of the resale restrictions, request for notice of default, subordination agreements, and any other applicable documents with the title company prior to close of escrow.
6. Consultant will inspect prospective sales units, hold at least one open house for prospective buyers, assist buyers with locating a realtor, financing, coordinate appraisal, property and termite inspections, prepare disclosure statements, open and close escrows in accordance with accepted real estate practices, and coordinate close of escrow to meet program deadlines.
7. Consultant must employ or subcontract with a licensed realtor to manage transactions for new unit sales or resales of existing units
8. Consultant will provide or coordinate Home Buyer education consistent with the U.S. Department of Housing and Urban Development (HUD) standards.
9. Consultant will monitor units annually to confirm program compliance and investigate and manage potential defaults.
10. Consultant will review and process requests for refinancing of BMR homes and junior loans in accordance with the BMR program guidelines.
11. Consultant shall review and update the BMR Homeownership Program Guide on an annual basis.

Task 3: BMR Rental Program

1. Consultant will manage entire rental process including advertising of available units.
2. Consultant will provide the property owner/manager of projects containing BMR units with the most current income and rent guidelines upon issuance by HCD and HUD each year.
3. Consultant will monitor BMR unit rents annually to ensure compliance with the required affordable rent levels under the BMR program.
4. Consultant will work with the property owner/manager on any compliance issues to bring the property into compliance.
5. Consultant will verify the eligibility of prospective tenants, including income, household size and priority preferences.
6. Consultant will enter rental applications into a lottery system, factoring in appropriate preference criteria
7. Consultant will manager the entire recertification process annually to ensure renters maintain BMR program eligibility.
8. Consultant shall review and update the BMR Rental Program Guide on an annual basis.

Task 4: BMR Program Inventory and Recordkeeping

Consultant shall maintain the City’s existing records, databases, and files through a file retention and management system for the program. The Consultant will update the City’s records quarterly to ensure a coordinated seamless record-keeping process. Database access shall be provided to City staff involved in the BMR program administration. The database shall include the following at a minimum:

1. For each BMR / RDA Development (new and existing):
2. A list of all BMR / RDA units in the development
3. The date of the BMR / RDA developer agreement
4. BMR / RDA units lost, including date, reason for loss, initial sales price, resale price, and actions taken

1. For each owner unit (new and existing):

1. The address for each ownership unit
2. The level of affordability (e.g., Very Low, Low, Moderate)
3. The current owner of record
4. The expiration date of the owner agreement
5. The last date of recertification
6. The recertification status (updated annually)
7. The original sales price
8. The current resale restriction price
9. Dates of owner turn-over, as applicable

1. For each renter unit (new and existing):

1. The unit number for each rental unit
2. The level of affordability (e.g., Very Low, Low, Moderate)
3. The current tenant of record
4. The last date of recertification
5. The recertification status (updated annually)

1. For each affordable housing loan:

1. The type of loan (e.g., RDA, BEGIN, FTHB, etc.)
2. The address associated with the loan
3. The current owner of record (this should be the loan recipient)
4. The amount, term, and due date of the loan
5. Dates of payoff and interest collected, as applicable
6. Dates of refinance/subordination, as applicable
7. Dates of write-off and amount, as applicable

1. Other information as requested and mutually agreed to.

Task 5: Evaluation

1. Collect data on the number of inquiries received, the nature of the inquiries, and the resolution. In addition, consultant will identify trends and suggest areas for process improvements if necessary.
2. Consultant will provide quarterly reports to the City on the status of the BMR program administration, including but not limited to: BMR inquiries and resolution, BMR compliance status, and Existing Loan Administration.
3. Review existing BMR Ownership and Rental Program Guides and develop recommendations for improving the guides drawing from experiences and based on best practices.
4. Review existing documents, including Developer agreements and homebuyer documents and develop recommendations for improving the program documents drawing from experience and best practices.

The ideal firm or consultant team would include the following disciplines and attributes:

•        Experience in BMR Program Administration: The consultant should have a background in the administration of local BMR Housing programs, including rental and ownership programs.
•        Organizational Skills: The consultant should be highly organized, with a responsive team who listens to, partners with and is passionate about collaboration with city staff and other stakeholders.
•        Communication Skills: Demonstrated communication skills, customer service skills, technical skills, expertise, and experience executing the scope of services identified in the RFP.
•        Innovative and practical solutions: The consultant should be able to propose, creative, realistic and cost-effective solutions to address challenges in BMR program administration and be up to date with best practices and policies.

The service provider shall be responsible for preparing an effective, clear, and concise proposal. The City is requesting an electronic copy of the proposal in PDF format emailed to RFP@campbellca.gov The proposal shall be organized by clearly labeled sections. Proposals must contain at a minimum the following information:        Format for Proposal: To facilitate the review of responses, all responses are required to adhere to the following requirements regarding their proposal. The City strongly encourages respondents to ensure that RFP submissions are succinct and clearly organized. If the proposal is not in this format or does not include all the listed items, it may be deemed nonresponsive. For ease of handling, all responses are to be provided in a standard 8 ½” x 11” portrait layout in PDF format.

a.        Title Page showing the request for proposals subject; the firm’s name; the name, address, email address and telephone number of the contact person; and the date of the proposal.

b.        Table of Contents identifying the submitted materials by section and page number.

c.        Detailed Proposal following the order as set forth below and clearly label each section..        Letter of Interest: Please provide a letter expressing the Consultant’s interest which includes:
a.        A statement describing why your firm is qualified to provide the services and perform the work required in a responsive manner.
b.        A description of the anticipated interaction between the Consultant and City staff.
c.        Identification of the Project Manager and main point of contact.        Project Understanding and Approach: Please include a statement demonstrating your understanding of the proposed scope of services. Provide a detailed discussion of how your firm will implement and administer the BMR Program, including the protocol your firm will use for each of the tasks identified in the Scope of Services. What processes, methodologies and technologies do you employ? Describe what information you would expect the City to supply..        Relevant Experience: Please describe your organization’s past performance in providing similar services to other municipalities. Provide references from at least three (3) California municipalities that your firm is currently providing or has provided within the last three (3) years. Address your firm’s record of meeting schedules and controlling costs        Project Manager / Key Staff: Please include information about the specific relevant experience for the proposed Project Manager and all other applicable staff. Please submit resumes only for those individuals that will be assigned to the City of Campbell. Include an organizational chart which identifies the primary role of each team member (i.e., BMR inquiries, document preparation, monitoring, etc.).

6.        Conflict of Interest Statement: The firm shall disclose any financial, business, or other relationship with the City that may have an impact upon the outcome of this contract. Particular attention should be paid to compliance with Government Code section 1090. See “Conflict of Interest” on page 8 of this RFP for reference.

7.        Comments on or Requested Changes to Contract: The City’s standard Consultant Services Agreement is included as Attachment 1 to this Request for Proposals. The proposing firm shall identify any objections to and/or request changes to the standard contract language in this section.

8.        Fee Schedule: Submit a cost estimate for each task in the Scope of Services (i.e., fixed fee for basic services, fee per transaction/sale). Include a detailed and itemized fee schedule for all personnel assigned for this project and task deliverables totaling the proposed budget needed to complete tasks and deliverables.

Existing Information

•        Current General Plan 2040
•        Campbell Housing Services
•        Housing Element 2023-2031
•        BMR Program Update Report 2024
•        BMR Program Update Report 2023
•        BMR Program Update Report 2022

Additional Resources

•        CampbellCA.gov
•        Board & Commissions
•        General Plan Map
•        City Council
•        Community Demographics
•        Community Development Department
•        Finance Department
•        Municipal Code
•        City Manager’s Office

Term of Contract

The initial contract term shall commence upon execution of the contract by the City and shall be for a twelve (12) month period. The contract includes the option for two additional (12) twelve-month renewal periods in the event additional consulting services are requested by the City, for a total potential contract term of up to three (3) years.

Extension of Contract

At the end of the initial twelve (12) month term, the City of Campbell, at its sole discretion may elect to extend the contract for two (2) additional twelve-month terms. The City may extend the contract for a total of two years, pending additional services are requested by the City and satisfactory performance under the original contract. Contractual costs shall be equal to the June-to-June San Francisco-Oakland-San Jose Consumer Price Index-All Urban (CPI) in an amount not to exceed five percent (5%) but not lower than three percent (3%), upon execution of each contract renewal.

Evaluation of Proposals and Selection Process

Evaluation of the proposals will be made by the Community Development Director and other City staff as deemed appropriate by the City Manager or designee. This evaluation team, in accordance with the criteria listed below, will evaluate all proposals received as specified. The City team members, in applying the major criteria to the proposals, may consider additional criteria beyond those listed. During the evaluation period, the team may elect to interview some or all of the proposing firms. The final selection will be the firm which, in the City’s opinion, is the most responsive and responsible, meets the City’s requirements in providing this service, and is in the City's best interest. The City maintains the sole and exclusive right to evaluate the merits of the proposals received. Consultants will be objectively evaluated based on their responses to the project scope outlined in the RFP. The written proposal should clearly demonstrate how the firm could best satisfy the City’s requirements. Proposals will be evaluated on the following criteria:

No.        Written Evaluation Criteria        Point Value
1        Experience Administering BMR Housing Programs        Pass/Fail
2        Qualifications & Experience        30
3        Organization & Approach        20
4        Scope of Services to be Provided        25
5        References        20
6        Local Presence        5
7        Conflict of Interest Statement        Pass/Fail
Subtotal:        100