REPORT TO COUNCIL
SUBJECT
Title
Consideration of an Agreement for Administrative Services with Housing Trust Silicon Valley for the City's Below Market Purchase Program
Report
BACKGROUND
On August 10, 2015, City Council approved a two-year Agreement with Housing Trust Silicon Valley (HTSV) to provide administrative services for the City's Below Market Purchase (BMP) Program. The City had previously contracted with Neighborhood Housing Services Silicon Valley, Inc. (NHSSV) to provide this service. When NHSSV announced on June 26, 2015, that it would cease all on-going homeownership programs and services effective immediately, including BMP Program administration services, NHSSV recommended the transfer of services to HTSV. The City entered into an agreement with HTSV because of the need to immediately transfer the program administration to a new entity and to avoid interruption in services.
On June 27, 2017, based upon the satisfactory performance of HTSV, the City Council approved Amendment No. 1 to the Agreement with HTSV to extend the agreement for one additional year, terminating on June 30 2018.
In anticipation of the upcoming expiration of the City's contract, staff issued an RFP for administration of the BMP Program on April 24, 2018. Submissions were due on May 11, 2018. Two respondents, HTSV and HouseKeys, submitted proposals.
DISCUSSION
Although both respondents (HouseKeys and HTSV) provided compelling proposals, HTSV was able to offer its services at a slightly lower cost and did not require a program implementation and setup fee. HTSV is among the largest housing trusts in the nation financing affordable housing, assisting first-time homebuyers, and providing homeless assistance grants. Nationally recognized for their efforts to make housing more affordable in the greater Silicon Valley/Bay Area, HTSV is the first and, so far, only non-profit Community Development Financial Institution (CDFI) to be rated by S&P with a high investment grade rating...
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