City of Foster City Request for Proposals
Below Market Rate Accessory Dwelling Unit Loan Program
“Foster City Affordable ADU Program”
RFP Schedule:
Release Date: December 23, 2025
Deadline for Questions/Comments: February 13, 2026
Proposals Due: February 20, 2026
Please send questions, comments, and proposals via email to:
njabba@fostercity.org Nori Jabba, Housing and Sustainability Manager
OFFICIAL CONTACT:
Nori Jabba
City of Foster City
Community Development
610 E. Hillsdale Blvd.
Foster City, CA 94404
650-286-3230
njabba@fostercity.org
Table of Contents
Request for Proposal............................................................................................................... 1
Attachment A: Sample Agreement for Professional Services....................................................10
Exhibit A: Scope of Work ....................................................................................................19
Exhibit B: Fee Schedule......................................................................................................20
Exhibit C: Insurance Requirements.....................................................................................21
Attachment B: Draft Program and Loan Underwriting Guidelines .............................................28
City of Foster City Request for Proposals (RFP)
Below Market Rate Accessory Dwelling Unit Loan Program
(“Foster City Affordable ADU Program”)
1. SUMMARY
The City of Foster City is requesting proposals from qualified firms interested in administering
and delivering the City’s Below Market Rate (BMR) Accessory Dwelling Unit (ADU) Loan Program
known as the “Affordable ADU Program” (“Program”). Through this program, eligible
homeowners can access interest-free financing in exchange for renting their ADUs to low-
income households for ten years. The City’s goal is to help build eight (8) deed-restricted ADUs
that support the 2023–2031 Housing Element, Program H-D-4-b ADU/JADU Financial Incentive
Program (page HE-94):
Provide or partner with another organization to provide a financial incentive program for single-
family homeowners to construct an ADU/JADU that is restricted for lower-income households for
10-15 years, with an additional incentive amount for units subject to a preference for identified
categories of special needs people who would benefit from coordinated onsite services, including
but not limited to people with developmental disabilities.
The City of Foster City is seeking to engage with a selected entity that responds to this RFP
(“Contractor”) to administer the program in one of the following types of programs (“Program
Type”):
a) Loan Administration Only: Contractor will provide and manage financing only –
homeowners find their own ADU general contractor/provider.
b) Loan Administration and ADU Construction Services: Contractor will serve as both
the general contractor for custom-built ADUs and provide and manager of financing of
the ADUs for the homeowners. Contractor may partner with general contractor, and/or
financing entity to form a team for this RFP.
c) Loan Administration and ADU Sales and Installation: Contractor will serve as the
seller for pre-manufactured or pre-fabricated ADUs, manager of installation, and
manager of the financing of the ADUs for the homeowners. Contractor may partner with
general contractor, and/or financing entity to form a team for this RFP.
Management of financing includes underwriting and administering payment-deferred, no-
interest loans issued by Contractor using funds received from the City under the agreement the
Contractor enters into with the City. The Contractor will act as lender and the City will not be
party to the loan agreements with borrowers. Management of the construction/installation
process includes oversight of design, construction, and/or installation of the ADUs,
management of the permitting process, and collaborating with City staff to ensure the
Program’s requirements are met. Respondents may select (a), (b), or (c) as listed above to
administer the program, depending on the Respondent’s entity type and areas of expertise.
City of Foster City Affordable ADU Program RFP
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Respondents must agree to hold a City of Foster City business license during the term of the
contract.
Respondents applying for program type (b) or (c) must also hold a valid California General
Contractor’s License
The initial contract term with the selected Contractor for this program is three years to launch
the program, with the option for one additional three-year extension at the City’s discretion. The
intent is to issue at least eight (8) loans during the initial three-year contract period, with at least
and additional eight (8) during the three-year extension period, if the City exercises its option to
extend. Prior to termination of the Agreement, the City will execute a separate agreement with
the selected contractor for continuing loan administration services for existing loans only once
after all loans have been issued.
Homeowners qualifying for the Program may receive up to $125,000 in payment-deferred, zero
interest City financing for their ADU if they commit to renting the ADU as part of the City of Foster
City’s Below Market Rate (BMR) Rental Housing Program for 10 years, or up to $150,000 for
ADUs rented with a preference for households needing supportive-housing. Homeowners
participating in the Program also benefit from accelerated permitting using pre-approved ADU
plans. The City will work with the selected contractor to pre-review the Contractor’s designs for
the program.
All ADUs must comply with Foster City Municipal Code Chapter 17.78 and the City’s Below
Market Rate (BMR) Housing Program requirements. This relationship between the City and the
Contractor aims to expand affordable housing opportunities for low-income and special-needs
residents through high-quality, code-compliant ADUs.
2. ATTACHMENTS
• Attachment A: Sample Agreement for Professional Services (“Agreement”)
A sample agreement is provided for review. Proposers should carefully review all terms as
well as Exhibit A (Scope of Work), Exhibit B (Fee Schedule), and Exhibit C (Insurance
Requirements), and indicate any exceptions in their proposal, noting page numbers of RFP.
• Attachment B: Draft Affordable ADU Program and Loan Underwriting Guidelines
(“Program Guidelines”)
Proposers should carefully review the Guidelines and indicate any requested changes or
exceptions or in their proposal, noting page numbers. The City anticipates that the scope of
work for the Agreement will incorporate the Program Guidelines by reference into the
contract.
3. BACKGROUND
Foster City, incorporated in 1971, is a master-planned community located in San Mateo County.
City of Foster City Affordable ADU Program RFP
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The City covers approximately four square miles and lies between San Francisco and Silicon
Valley, with close access to both Highway 101 and Highway 92. Home to roughly 33,000
residents, Foster City is known for its diverse population, planned neighborhoods, and limited
remaining space for new development. The community is protected by an eight-mile levee
system along the bayfront and a lagoon system that provides flood storage and drainage.
4. GENERAL PROVISIONS AND CONDITIONS
The City reserves the right to:
1. Reject any and all responses.
2. Negotiate with more than one consultant.
3. Waive minor irregularities in a response.
4. Cancel, revise, or extend this solicitation.
5. Revise the Agreement and/or Program Guidelines prior to final approval.
6. Request additional information on any response beyond that required by this RFP.
7. Modify the selection process outlined in this RFP upon written notification to all
respondents who have not been rejected at the time of modification.
8. Request substitution of sub-consultants.
Should discrepancies or omissions be found in this RFP, or should there be a need for
clarification, questions, or comments regarding this RFP, they must be received by deadline
listed below and should be sent to Nori Jabba, Housing and Sustainability Manager, at
njabba@fostercity.org.
5. PROPOSED TENTATIVE TIMELINE
The tentative RFP timeline is provided for the convenience of the Proposers but may be subject
to change at any time by the City. Any such changes will be stated in an addendum to this RFP.
The tentative RFP timeline is as follows:
RFP ACTION
RFP Issued
Pre-Proposal Meeting
Deadline for questions and clarifications
Proposals Due
Finalist Identified
Consultant Interviews
Consultant selection & contract preparation
DATE
December 23, 2025
None
February 13, 2026
February 20, 2026
March 2026
March 2026
Estimated to be within 60 days of RFP
deadline
City of Foster City Affordable ADU Program RFP
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Contract awarded
Work commences
Estimated to be within 90 days of RFP
deadline
Estimated to be within 120 days of RFP
deadline
6. RELATED DOCUMENTS/LINKS
Foster City Housing Element
Foster City’s 2023–2031 Housing Element establishes a framework for meeting local housing
needs and complying with State housing laws. The Housing Element identifies community needs
and establishes goals and programs that ensure Foster City grows in an equitable, climate-
resilient, and consistent manner with the City’s long-range plans. The ADU Loan Program is one
of the implementation tools identified in the Housing Element to support the production of
affordable units.
7. SCOPE OF WORK
The following eight (8) tasks are associated with this RFP:
Task 1: Project Initiation and Project Management
At the start of the project, the consultant will participate in a kick-off meeting with City staff to
review objectives, roles, communication procedures, and reporting expectations. The
Contractor will work with staff to refine and confirm the project timeline. Ongoing project
management responsibilities include regular check-ins, progress updates, coordination, budget
tracking, and responsive communication.
Task 2: Program Administration and Homeowner Intake
The Contractor will manage all Program administration tasks, including homeowner intake, and
selection of eligible applicants on a first-come, first-served basis. The Contractor shall schedule
feasibility consultations, prepare feasibility reports, and assist homeowners in selecting an
eligible ADU model, as applicable. The Contractor is responsible for developing and maintaining
all loan applications, coordinating documentation, and managing the applicant process from
initial inquiry through project completion.
Task 3: Loan Origination, Underwriting, and Servicing
The Contractor will originate, underwrite, and administer no-interest loans. The Contractor will
use funds received from City pursuant to the Contractor’s agreement with City to fund the loans.
The Contractor will provide or secure supplemental private financing as needed for each project
and must manage the loan documentation and processing in accordance with Program
guidelines. The Contractor will establish and manage a loan re-use account, collect payments
from homeowners, enforce repayment using commercially reasonable practices up to and
including foreclosure, and track repayment events. At the conclusion of an initial three-year
term, during which at least eight (8) Affordable ADU loans will be made, the City will have the
City of Foster City Affordable ADU Program RFP
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This is the opportunity summary page. It provides an overview of this opportunity and a preview of the attached documentation.
