SR-407-002 (3)
RM:HRD:MS::f:\RESOURCE\SHARE\STAFFREPORTS\CHS RRP.doc
Council Meeting: September 28, 2004 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Professional Services Agreement with Comprehensive Housing Services
to Administer the Residential Rehabilitation Program for One Year with
Options to Renew for Two Additional Years.
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate
and execute an agreement with Comprehensive Housing Services (CHS) for
administration of the Residential Rehabilitation Program funded at $300,000. Up to 20
percent of the program funds or $60,000 may be paid in administrative fees to CHS
annually. At least 80 percent of the Residential Rehabilitation Program funds are to be
expended on eligible residential properties.
BACKGROUND
The City, using CDBG funds, has operated the Residential Rehabilitation Program since
1996 to provide rehabilitation assistance to residential property owners when the
property owner is low-income or a public entity, and at least 51 percent of the tenants
qualify as low-income.
DISCUSSION
On December 9, 2003, the City Council authorized the City Manager to execute a
contract with Comprehensive Housing Services (CHS) to administer the Residential
Rehabilitation Program for the 2003-04 fiscal year and to pursue a competitive process
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for the administration of the Residential Rehabilitation Program for the 2004-05 fiscal
year. In preparation for the competitive bidding process, City staff made minor
revisions to the Residential Rehabilitation Program Guidelines to clarify the
rehabilitation services being offered and to provide increased flexibility to meet the
rehabilitation needs of the community.
The revised guidelines provide the following two primary activities within the Residential
Rehabilitation Program: (i) the Multi-Family Rehabilitation Program for owners of
multifamily rental properties occupied by low-income tenants and financial assistance
for property owners to provide lead-based paint remediation in Section 8 units, and (ii)
the Owner Occupied Rehabilitation program for low income elderly households, low-
income households with a disabled family member, and low-income mobile home
owner/occupants. The priorities for this fiscal year (FY 2004-05) Residential
Rehabilitation Program funds will be to continue to remediate lead-based paint in
Section 8 units, continue health and safety repairs at the City-owned property at 1614-
16 Ocean Avenue, and continue assisting elderly households and households with a
disabled family member with minor repairs.
In July of 2004, staff issued a Request for Qualifications (RFQ) for professional housing
administrative services for the revised Residential Rehabilitation Program for FY 2004-
05. Seven bid packages were mailed to qualified housing program providers.
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Responses to the RFQ were received from two firms, Comprehensive Housing Services
and Willdan. Both firms were interviewed and had their responses ranked by Housing
and Redevelopment Division staff.
Based upon the rating criteria, staff determined that Comprehensive Housing Services
(CHS) was the most qualified firm to administer the Residential Rehabilitation Program.
CHS has extensive knowledge and experience operating affordable housing and
rehabilitation programs in many Southern California communities and has specific
expertise and unique knowledge of Santa Monica’s rehabilitation program.
FINANCIAL/BUDGETARY IMPACTS
The approved FY 04/05 Budget includes funding of $300,000 in CDBG funds for this
program in account number 01264.572150.
RECOMMENDATIONS
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Comprehensive Housing Services for administration of the
Residential Rehabilitation Program funded at $300,000 and for an administrative fee not
to exceed $60,000 per year, for one year, with options to renew for two additional years.
Prepared by: Jeff Mathieu, Director, Resource Management Department
Bob Moncrief, Housing and Redevelopment Manager
Ron Barefield, Housing Administrator
Mike Strader, Senior Administrative Analyst
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