DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Verónica R. Soto, AICP
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Approval of a professional services contract between the City of San Antonio and the San Antonio Housing Trust Foundation, Inc. in an amount not to exceed $159,283 for services rendered October 1, 2018 through September 30, 2019.
SUMMARY:
Consideration of a professional services contract between the City of San Antonio and the San Antonio Housing Trust Foundation, Inc. for the administration of the San Antonio Housing Trust (“SAHT”) and associated entities.
BACKGROUND INFORMATION:
The City San Antonio Housing Trust was created by the City of San Antonio in 1988 with a corpus of $10 million dollars for the purpose of facilitating affordable housing development. The day-to-day administration of the Housing Trust Fund is performed by the San Antonio Housing Trust Foundation, Inc. (“Housing Trust Foundation”) which was formed in 1991 as a section 501 c (3) non-profit organization.
The City and Housing Trust Foundation renew their professional services contract annually through City Council approval. This agreement outlines the Housing Trust Foundation’s operating budget, staffing, and program responsibilities.
As recommended by the Mayor’s Housing Policy Task Force (“MHPTF”) Final Report on September 6, 2018, the San Antonio City Council requested a strategic assessment be conducted of the SAHT and its associated entities to ensure its future and effectiveness. In accordance with the City Council’s request, participation and cooperation from the Housing Trust Foundation, San Antonio Housing Trust Finance Corporation (“Finance Corporation”) and San Antonio Housing Trust Public Facility Corporation (“PFC”) is included in this contract for a comprehensive assessment, subject to the consent and cooperation of the Finance Corporation and PFC. This will allow third-party consultant(s) reasonable access to the documents and financial records of the aforementioned entities and interviews with leadership, managerial-level employees and retained professionals as deemed necessary to assess the priorities, management, leadership, production, budgeting and investment profiles, and to develop a strategy to increase staff capacity, accountability and transparency for said entities.
A request for proposals (RFP) was released Friday October 12, 2018 for the strategic plan and assessment which is anticipated to be completed by the end of late spring 2019.
ISSUE:
The City and Housing Trust Foundation renew their professional services contract annually through City Council approval. This agreement outlines the Housing Trust Foundation’s operating budget, staffing, and program responsibilities.
The proposed professional services contract between the City of San Antonio and the San Antonio Housing Trust Foundation, Inc., is an amount not to exceed $159,283.00 for a period of 12 months beginning on October 1, 2018. The source of funding for the payment for the contract is by interest earned through the City's Housing Trust corpus. The payments to the Housing Trust Foundation are through reimbursement of expenditures on a monthly basis.
The proposed contract will provide funding for staffing of the San Antonio Housing Trust Foundation, Inc. to include an Executive Director, Executive Assistant, Asset Manager, Administrative Assistant, and Contract Asset Manager. These positions are not City employees. These staff members also provide staff support to the San Antonio Housing Trust Finance Corporation and San Antonio Housing Trust Public Facility Corporation.
The contract work plan includes the following responsibilities:
1. Manage the day-to-day operations and administration of the San Antonio Housing Trust.
2. Provide staff and administrative support to the San Antonio Housing Trust Board of Trustees.
3. Conduct the regular and special funding rounds of the San Antonio Housing Trust.
4. Act as disbursement agent for awards of Trust assistance recommended by the Board of Trustees as approved by City Council.
5. Monitor disbursement contracts and awards from the Housing Trust.
6. Perform research as needed by the Housing trust to augment programs.
7. Provide technical assistance relating to affordable housing finance and proposal development to sponsors and potential sponsors of affordable housing developments and programs.
8. Develop diversified sources of dedicated revenue for the growth of the Trust’s corpus and expansion of funds available for funding proposals and administrative needs of the Housing Trust.
9. Work with the title companies and lenders to provide advances for down payment assistance to allow timely closing for first time homebuyers in connection with the City’s Homeownership Incentive Program.
10. Accept funds on the City’s behalf to support neighborhood and housing revitalization efforts. These funds shall be kept in an account with the Foundation and will be used to pay invoices submitted by the City for the purpose for which the funds are received.
11. Identify existing and potential capital sources based on plan priorities.
12. Structure bond issues for single and multi-family housing and identify leverage opportunities for the San Antonio Housing Trust Finance Corporation or the San Antonio Housing Trust Public Facility Corporation.
13. Through the PFC, identify Multi-family projects that meet the criteria of the City’s SA Tomorrow Plan, City’s Fee Waiver program, and Neighborhood revitalization projects.
14. Identify Revenue Bond opportunities for the San Antonio Housing Trust Finance Corporation or the San Antonio Housing Trust Public Facility Corporation for both Single and Multi-family issues.
15. Provide owner oversight on the Single and Multi-family properties owned by the San Antonio Housing Trust Public Facility Corporation.
16. Maintain a revolving loan fund, as needed, for the City’s non-profit affordable housing developers to help leverage other funds in developing single and multi-family housing.
17. Manage donation used for supplies and event such as the Mayor’s Housing Summit.
18. Serve as escrow agent for NSP Land Bank (Acquisition, Rehabilitation and Resale) Program and Homebuyer Assistance Program as outlined in the provisions of the tri-party escrow agreement executed on June 6, 2013.
19. Serve as escrow agent for the Targeted Reinvestment and Neighborhood Improvement Areas Acquisition and Development accounts to acquire vacant lots to build new homes to provide high quality affordable housing and support neighborhood revitalization efforts. Pay for draw requests submitted by the City and San Antonio Affordable Housing, Inc. to allow timely payment to contractors.
ALTERNATIVES:
The City can vote to not approve the professional services contract. However, this would adversely impact the ability of the Trust to continue its mission of providing affordable housing for San Antonio residents.
FISCAL IMPACT:
If approved, this action will authorize the agreement in an amount not to exceed $159,283.00 for services related to the administration and funding of the San Antonio Housing Trust Foundation, Inc. The source of funding for the payment of the contract is by interest earned through the City's Housing Trust corpus. The payments to the San Antonio Housing Trust Foundation, Inc. are reimbursed by the City monthly.
RECOMMENDATION:
Staff recommends the approval of a professional services contract between the City of San Antonio and the San Antonio Housing Trust Foundation, Inc. in an amount not to exceed $159,283.00 starting on October 1, 2018 and ending on September 30, 2019.