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SR-061907-1B~~ ~;tYof City Council Report Santa Monica City Council Meeting: June 19, 2007 Agenda Item: ~~ To: Mayor and City Council From: Andy Agle, Housing and Economic Development Director Subject: Contract Modification for Comprehensive Housing Services, Inc. to administer the Residential Rehabilitation Program Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a modification to the professional service agreement with Comprehensive Housing Services, Inc. to extend the term of the contract to December 31, 2007, and increase the contract amount by $250,000 for a new not to exceed total of $550,000, for the administration of the Residential Rehabilitation Program. Executive Summary On September 28, 2004, the City Council authorized the execution of a contract with Comprehensive Housing Services, Inc. (CHS) for the administration of the City's Residential Rehabilitation Program (RRP) through June 30, 2005 with options to renew for two additional years. During this contract period, the RRP was funded with annual federal Community Development Block Grant (CDBG) allocations of $300,000. Staff has issued and will review responses to a Request for Qualifications and anticipates recommending to City Council the next RRP administrator in approximately two months. 1 The selected administrator will oversee any projects commenced after contract execution. An extension of the contract is recommended to complete six rehabilitation projects that have commenced and should be completed ho later than December 2007 .and to provide authority for CHS to administer federal HOME Investment Partnership Act (HOME) funds for rehabilitation of mobilehomes at Mountain View Mobilehome Park. Cost for these services will be paid for from the CDBG and HOME housing trust funds. Discussion Background The City has operated the RRP since 1996 to provide financial. assistance for a variety of repairs to owners of multi-family properties occupied by low income tenants and for low income owner occupied properties. The priorities for assistance have been to multi- family properties housing Section 8 participants, multi-family properties where at least 51 percent of the tenants qualify as low to moderate income, low income owner- occupants that are over 62 years of age; and low income disabled households. The source of funds for the program has been federal CDBG funds. CHS has been administering the program over the last three years and is experienced in the rehabilitation of multi-family, single family and mobilehomes. A Request for Qualifications has been issued to select the next administrator of the RRP and staff anticipates a recommendation to City Council in approximately two months. There are 2 six rehabilitation projects currently underway, which should be completed within the next six months. To facilitate continuity in the administration and completion of the existing projects, a six month extension of the CHS contract is requested. Any new projects commenced after the selection of the next RRP administrator will be performed by that firm. CHS will administer HOME funds, up to $250,000, for an immediate need to assist Mountain View Mobilehome residents in rehabilitation needs that are necessary prior to planned infrastructure improvements. On May 8, 2007, the City Council approved the Consolidated Plan FY2007-OS one-year Action Plan. The plan identified the commitment of prior year HOME funds for a mobilehome rehabilitation and replacement program. Staff recommends that CHS administer these funds and program, since the functions are similar to the current program and its familiarity with Mountain View Mobilehome Park. Currently, eleven mobilehomes have been identified in need of potential financial assistance to reposition and rehabilitate their mobilehome prior to construction commencing on the infrastructure. HOME funds will be used for the proposed financial assistance. Staff will return to City Council at a later date to identify and recommend actions and funding to assist other residents at Mountain View Mobilehome Park with code compliance and needed mobilehome rehabilitation or replacement needs. 3 Budget/Financial Impact Funds for this contract amendment are available in CIP account H2O005005.5890000. Prepared by: Bob Moncrief, Housing Manager to Council: ,a s LZ Andy Agle, Director P. mont Eti Housing and Econo ~ Development ~ Manager 4 Reference Amendment to Contract No. 8390 (ccs).