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Title:
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Federal HOME Open Doors Down Payment Assistance Contract Awards (Ordinance S-48410)
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Title
Federal HOME Open Doors Down Payment Assistance Contract Awards (Ordinance S-48410)
Description
Request to authorize the City Manager, or his designee, to enter into agreements with Chicanos Por La Causa and Trellis for the Housing Department's federally funded Open Doors Down Payment Assistance (DPA) Program in an aggregate amount not to exceed $1.5 million over the life of the contracts. Further request to authorize the City Controller to disburse all funds for the life of the contracts. There is no impact to the General Fund.
Report
Summary
The City receives an annual allocation of federal HOME Investment Partnerships (HOME) Program funds from the U.S. Department of Housing and Urban Development (HUD), which the City can use to increase homeownership opportunities for low and moderate-income families.
On Sept. 27, 2021, the Housing Department issued a Request for Proposals (RFP) inviting sealed offers for the administration of the Open Doors DPA Program. Chicanos Por La Causa and Trellis were selected based on their responses to the City’s RFP. These agencies will utilize federal HOME Program funds for the provision and administration of the Open Doors DPA Program, which will assist eligible first-time homebuyers with the purchase of an affordable home in Phoenix by providing funding for down payment and/or closing costs.
Persons eligible for assistance using HOME funds must be at or below 80 percent of the Area Median Income and must be first-time homebuyers. Buyers must complete eight hours of Homebuyer Education and occupy the property as their primary residence.
Assistance of up to 10 percent of the home purchase price will be provided to the applicant for DPA and/or closing costs. Total assistance provided to homeowners will be based on eligibility and individual need. Home prices cannot exceed HUD established HOME Homeownership Value Limits calculated annually.
Chicanos Por La Causa and Trellis will bill the City one flat fee for each executed loan. The funds will allow for the execution of an estimated 45 loans over five years.
Procurement Information
The RFP was available through the City's website through Nov. 4, 2021. A selection committee convened to evaluate proposals based on the criteria listed below. The committee was made up of two representatives from City departments and one community partner, with housing development expertise, who was not competing for the funding.
Offerors were required to meet the following threshold criteria prior to moving forward for evaluation and scoring by the selection committee.
Threshold Criteria:
Public agency, or nonprofit organization, currently operating in Maricopa County, or be capable of having a local office, accessible to Phoenix residents, fully operational prior to the contract effective date;
Entity is not on the HUD Debarment List; and
Must have three years’ experience with loan origination programs.
Proposals submitted in response to the Housing Department’s RFP for the Open Doors DPA Program were subject to three evaluation criteria.
Experience, Financial Capacity and Qualifications (450 points)
Capacity and demonstrated effectiveness in performing the specified work as evidenced by references and other supporting documentation; financial stability and years in existence.
Design (350 points)
Proposed approach, methodology, timelines, and implementation strategy for providing services for the required activities.
Price and Cost (200 points)
Reasonableness of proposed fees, based on per unit pricing for each executed loan; proposed fiscal accounting processes and budgetary controls to ensure the responsible use and management of contract funds and accurate invoicing.
Two proposals were received and reviewed by the evaluation committee. The evaluation panel scored the proposals as follows:
Trellis: 603 points; and
Chicanos Por La Causa: 565 points.
Contract Term
The City intends to enter into two-year contracts, with options to renew or extend the agreements for three additional periods of up to one year each that may be exercised in the discretion of the City Manager.
Financial Impact
The aggregate contract value will not exceed $1.5 million over the life of the contracts. There is no impact to the General Fund. HOME is a federally funded program.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.