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SR-102307-1G~~ ~;tYOf City Council Report Santa Monica' City Council Meeting: October 23. 2007 Agenda Item:_-1'"'~ To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: Professional Services Agreement with 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 an agreement with Comprehensive Housing Services, Inc (CHS) in an amount not to exceed $900,000 over athree-year term, for the administration of the Residential Rehabilitation Program. Executive Summary The Residential Rehabilitation Program, using Community Development Block Grant (CDBG) funds, provides financial assistance for repairs to owners of properties occupied by low income tenants and for low income owner occupied properties. CHS has successfully operated the Santa Monica Residential Rehabilitation Program for the past three years with an average administrative cost of approximately six percent per year. CHS is recommended to administer the Residential Rehabilitation Program. CDBG funds of $300,000 are budgeted annually for this activity. 1 Discussion Background The City has operated the Residential Rehabilitation Program (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. Since 2004/05, CHS has administered the program for the City and 112 low income households have been served citywide. In addition, during FY 2006-07 City Council authorized staff to modify the existing agreement with CHS to provide for administration of $250,000 of HOME funds for the repositioning and rehabilitation of mobile homes at Mountain View Mobilehome Park A request for qualifications and a quote for professional services were mailed to seven qualified housing program providers to administer the FY 2007-08 RRP. Responses were received from three firms; Comprehensive Housing Services, Willdah and Amerinational Community Services. Housing Division staff reviewed the submittals and. rated each on qualifications, project understanding, experience, price and references and has determined that CHS is the most qualified firm to administer the program. Comprehensive Housing Services is recommended based on their understanding of the project, low administrative cost and past experience in operating residential 2 rehabilitation projects in the City of Santa Monica and other California cities. CHS has successfully operated the Santa Monica residential rehabilitation program for the past three years with administrative costs averaging about six percent of total program cost. Budget/Financial Impact Community Development Block Grant (CDBG) Funds in the amount of $300,000 for this professional services agreement are available in the FY 07/08 Budget at account 01264.572150. Prepared by: Mike Strader, Sr. Administrative Analyst Andy Age, Director O s Housing and Economic Development 3 Forwarded to Council: Reference Contract No. 8839 (CCS)