HomeMy WebLinkAboutHA35560 RFQ/RFP Property Management SvcsPALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: AUTHORIZE THE ISSUANCE OF A REQUEST FOR
QUALIFICATIONS/PROPOSALS FOR AFFORDABLE HOUSING
COMPLIANCE/PROPERTY MANAGEMENT SERVICES FOR THE
AUTHORITY OWNED RENTAL PROPERTIES
SUBMITTED BY: Janet Moore, Director of Finance
DATE: July 14, 2016
Recommendation
By Minute Motion, that the Housing Authority Board,
1) Authorize staff to advertise and issue a Request for Qualifications/Proposals
(RFQ/RFP) soliciting proposals from qualified licensed firms for affordable
housing compliance/property management services for the Palm Desert Housing
Authority ("Authority") owned properties; and
2) Appoint a Authority board member to participate in the review of the RFQ/RFQ
submittals.
Housing Commission Recommendation
The Housing Commission will review this request at its regular meeting of July 13, 2016.
Strategic Plan Objective:
This request does not apply to a specific strategic plan goal.
Executive Summary
Approval of this request will allow Authority staff to solicit an RFQ/RFP from qualified licensed
firms for affordable housing compliance/property management services for the Palm Desert
Housing Authority owned restricted properties ("Properties").
Background
The former agency acquired the initial seven hundred twenty-five (725) units in 1998. Since that
time the former Agency/Authority has acquired or constructed approximately four hundred (400)
more units. They consist of eight (8) multifamily and seven (7) senior properties. RPM Company
currently manages the Authority's affordable housing property portfolio and has performed
satisfactorily.
Responsibilities will include the day-to-day operation of fifteen (15) affordable housing
properties. Their duties will include, but not be limited to: compliance with affordable housing
rules and requirements; respond to residents' concerns and complaints, enforcement of house
rules and regulations, application of fair housing laws and enforcement of the Housing
Staff Report
RFQ/RFP — Affordable Housing Compliance and Property Management Services
July 14, 2016
Page 2 of 2
Authority's Administrative Policies and Procedures, qualifying applicants and tenants annually
for income certification; conducting credit, rental, employment, and criminal background checks,
all leasing activities; monitor day-to-day maintenance of properties, any maintenance contracts,
perform property and unit inspections; collect and disburse funds; provide monthly accounting
reports that include receipts and expenditures; annual financial reporting/filings; occupancy
reporting; and administration of funds ("Services"). All staff needed to accomplish these tasks
will be employed by the firm.
After the elimination of redevelopment, the Authority's resources are extremely limited and
obtaining services and supplies at the lowest cost possible is imperative for the Authority. The
Authority has a property operating budget of approximately $5.05 million dollars annually. The
gross revenue from the properties fluctuate with changes in tenant incomes. Due to the
unpredictability of gross revenues and other economic events, the RFQ/RFP will require the firm
to have experience in operating properties on an annual budget from limited property revenues
that must cover property costs and other other programs not within the management of the firm.
Budget administration management of the properties is difficult and will become even more as
the minimum wage/prevailing wage rates increase over the next several years as well as
increasing utility costs. The management of the properties include administration, obtaining
proposals for work under the Authority's purchasing procedures and public bids in some cases.
Currently the Authority pays a management fee per month per door and although fees will be
reviewed during the process, experience of the selected firm will be one of the key criteria in this
decision.
Any contract awarded from this RFQ/RFP would be effective as early as January 1, 2017. The
initial term of the contract shall be for three years, with two one-year extensions at the
discretion of the Authority. The contract can be terminated by mutual agreement or for
unsatisfactory performance upon a 30-day written notice by either party.
Staff recommends that the Authority Board authorize advertising and issuing the RFQ/RFP soliciting
proposals from qualified licensed firms for affordable housing compliance/property management
services for the Authority owned properties
Fiscal Analysis
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The fiscal impact is the cost of preparing the RFQ/RFP.
VERIFIED BY:, ok
Original on file with City C%rk"s Offic
AVEs:
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ment Head:
oore, Director of Finance
Approval:
McCarthy, Interi ` 'xecutive Director
* Approved the recommendations with Authority
Board Sabby Jonathan appointed to participate
in the review of the RFQ/RFP submittals.
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