SR-407-006 (20)
RM:HRD:PM:PM:f:\RESOURCE\SHARE\STAFFREPORTS\HAsupportservices2005.doc
Council Meeting: April 12, 2005 Santa Monica, California
To: Mayor and City Council
From: City Staff
Subject: Professional services contract with Program Compliance Solutions for
Section 8 program compliance, applicant eligibility determinations, and
Rental Integrity Management Monitoring (RIMM) monthly reviews.
INTRODUCTION
This staff report requests that City Council authorize the City Manager to negotiate and
execute a contract with Program Compliance Solutions for an amount not to exceed
$75,000 for one year, with two one-year renewal options at the same annual cost, to
assist Housing Authority staff conduct field audits to ensure program compliance,
determine eligibility of applicants for both City-owned affordable housing projects and
Inclusionary Housing units as well as Section 8 vouchers. In addition Program
Compliance Solutions will perform Rental Integrity Management Monitoring (RIMM)
monthly reviews.
BACKGROUND
The Department of Housing and Urban Development (HUD) requires that housing
authorities ensure program compliance through field audits of tenant income and
household composition. HUD has also recently instituted the Rental Integrity
Management Monitoring (RIMM) program, which requires housing authorities to
augment the amount of eligibility documentation for program participants. The
consultant will assist City staff in monthly file reviews in order to ensure compliance with
1
RIMM requirements. In addition, the interviewing of applicants for both City-owned
affordable housing projects and the Inclusionary Housing waiting lists must be
completed in a timely manner in order to ensure compliance with deed restrictions. The
Housing and Redevelopment Division will continue to qualify applicants for City owned
affordable housing projects and reopen the Inclusionary housing waiting list in late 2005
or early 2006.
The City currently contracts with Program Compliance Solutions for these services. In
FY 2003-04 Council authorized a contract for $56,300. This fiscal year, a contract was
executed for $47,050, which has been expended as a result of the increased
requirements by HUD and the need to pre-qualify an increased number of applicants
from the Inclusionary Housing waiting list for deed restricted units. Staff initiated a
competitive process to select a consultant for the next 12 months and possibly future
years.
DISCUSSION
The Santa Monica Housing Authority placed legal notices in the Los Angeles Times, the
Long Beach Press-Telegram and The Daily Press soliciting proposals for the services
cited above. In addition, the request for proposal was emailed to 40 housing authorities
in Southern California requesting that they forward the RFP to any potential bidders in
their area. Willdan and Program Compliance Solutions submitted proposals. Staff
reviewed the proposals submitted and recommends that Program Compliance Solutions
be awarded the contract for services. The Willdan hourly rates were 25% higher than
2
those of Program Compliance Solutions. The recommendation is based on the hourly
cost, the demonstrated overall ability and successful track record of Program
Compliance Solutions to provide the required services in a very short timeframe, and
the company’s staff qualifications and specialized work related experience. Program
Compliance Solutions is well versed in both Section 8 regulations and the operations of
housing authorities.
BUDGET/FINANCIAL IMPACT
Funds for professional services are budgeted at account #01264.555060. It is
anticipated that $20,000 will be expended during FY 2004-05.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional services contract with Program Compliance Solutions in an
amount not to exceed $75,000 for one year, with two one-year renewal options at the
same annual cost, to conduct field audits to ensure Section 8 program compliance,
determine eligibility of waiting list applicants for Section 8 vouchers, City-owned
affordable housing projects and Inclusionary Housing units, and assist City staff in
Rental Integrity Management Monitoring (RIMM) monthly reviews.
Prepared by: Jeff Mathieu, Director, Resource Management Department
Ron Barefield, Acting Housing & Redevelopment Manager
Peter Mezza, Housing Authority Administrator
Reference Contract No. 8459 (CCS).
3