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CC Resolution 12330RESOLUTION NO. 12330 BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AUTHORIZING THE CITY MANAGER TO EXECUTE THE BELOW MARKET RATE PROGRAM ADMINISTRATOR PROFESSIONAL SERVICES AGREEMENT WITH NYANDA & ASSOCIATES, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, D/B/A HOUSEKEYS WHEREAS, on June 7, 2016 the Council authorized the City Manager to execute aone- year contract with Nyanda & Associates, LLC, a California Limited Liability Company, d/b/a HouseKeys to administer the City's Below Market Rate Program; and WHEREAS, on May 16, 2017 the Council authorized the City Manager to execute a new one-year contract with Nyanda & Associates, LLC, a California Limited Liability Company, d/b/a HouseKeys to administer the City's Below Market Rate Program; and WHEREAS, the current one-year contract is set to expire on June 30, -2018; and WHEREAS, the cost of the Program is partially subsidized through the Administrator's collection of transaction fees charged to program participants (e.g., developers, applicants, homeowners, rental tenants,'arid lenders); and WHEREAS, the City Council held a public meeting on June 19, 2018 and approved .the scope of work (Exhibit A) and proposed fee schedule (Exhibit B); and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby- authorizes the City Manager to execute a 12 month (expiring June 30, 2019) Professional Service Agreement with Nyanda & Associates, LLC, a California. Limited Liability Company d/b/a HouseKeys.- - PASSED AND ADOPTED this 19th day of June, 2018, by the following roll call vote: AYES: COUNCILMEMBERS: Gibbons, Landry, Cristina, Waterman, Resnikoff NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None APPROVED: ~~~ G~'_ Paul Resnikoff, Mayor ATTEST: . Wend ood, City Clerk EXHIBIT A -SCOPE OF SERVICES BMR ADMINISTRATOR - HOUSEI4EYS The Scope of Work details the roles and responsibilities of the City and Consultant. The Schedule starts from the date the contract is fully executed by both parties. 1. Consultant will onboard the City's Below Market Rate (BMR) Program within 12 Months from contract date (90-120 Days with limited program assessment). 2. Consultant will administer the program and assure BMR Deed Restrictions are recorded and followed by all parties as applicable for each property. 3. Consultant will provide onsite support in the City of Campbell for service requests, orientations and workshops. 4. Consultant will regularly update BMR guidelines and program materials in conjunction with City staff to reflect the Consultant's administrative process for BMR Administration including, but not limited to: applications, program pamphlets, resale calculations, buyer selection process, sale and resale of units, refinancing requests, collection of City fees and other applicable fees, and default monitoring/resolution process. Consultant's objective will be to work alongside City Staff to incorporate "learnings" from the team's collective history with BMR Programs in Campbell along with surrounding Santa Clara, San Benito, Alameda, San Francisco, San Mateo, Santa Cruz and Monterey Counties. 5. Consultant will provide the City with a BMR program website presence that will link to the City's housing website. 6. Consultant and the City will develop mutually acceptable response times to BMR inquiries and processing times required to obtain City signatures. 7. Consultant shall maintain the City's existing databases and files for program administration and establish a file retention and management system for the program. All electronic records will be considered work products that are property of the City of Campbell. The Consultant will update the City's records quarterly to ensure a coordinated seamless record keeping process. 8. Consultant will provide the applicants with the following services: a. Conducting income, qualifications including review of assets, income, VOE's and all other necessary approvals to ensure qualification for the City loans. b. Making minor revisions to the City's existing program materials and legal documents. c. Underwriting loan applications in accordance with program requirements. d: Preparing all loan documents, overseeing proper execution thereof, and conducting final loan approval reviews. e. Ensuring timely delivery of all necessary documents into escrow, and preparing EXHIBIT A -SCOPE OF SERVICES BMR ADMINISTRATOR - HOUSEKEYS escrow demands and funding requests f. Overall management and implementation of specific program policies, including required reporting. g. Preparation of program materials by revising the City's current documents. h. Calculating all pay off demands and issuing any disclosures and tax forms as required by State and/or Federal Law. i. Calculating the resale value of all BMR homes as requested annually by the County. j. Work with City staff to ensure a seamless and coordinated development of documents as it relates to the BMR Program, including the RDO application process where BMR units are included, reviewing developer agreements, and ensuring that BMR requirements are outlined in an Affordable Housing Agreement and any subsequent amendments . to the development documentation. 9. Consultant shall act as transaction coordinator for all real estate transactions and will provide the City with a fee schedule. Consultant will charge BMR re-sale transaction fees in line with applicable recorded Deed Restrictions. Consultant will charge the developer transaction coordination fees in accordance with the Affordable Housing Agreement pertaining to the subject development project. 10. Consultant will coordinate document transmittals between buyers, homeowners, developers, and City as needed. Consultant will be responsible for ensuring all documents submitted for City signatures are complete and accurate. Consultant will be responsible for making any necessary corrections to documents. 11.~ Consultant will work with City staff to coordinate tracking of BMR units produced, BMR units waived and any in-lieu policies or fees collected. 12. Consultant shall work alongside Staff to conduct monitoring to annually evaluate BMR owners' & renters' compliance with the terms and conditions of the BMR recorded deed restrictions and program guidelines including the following: a. Mailing monitoring letters to all the BMR units. b: Reviewing in conjunction with City staff, City or County Assessor data to assist in the process (e.g., water utility bills, property records). c. Review City's preliminary monitoring list to identify follow up actions required. d. Meet with City staff to develop guidelines for acceptable default remedies (e.g., allowing rental of BMR units for hardship cases). 13. Consultant shall work alongside Staff to investigate and identify cure for potential BMR defaults including: EXHIBIT A -SCOPE OF SERVICES BMR ADMINISTRATOR - HOUSEKEYS a. Conduct follow up of those BMR owners who do not submit their compliance documentation. b. Reviewing information from calls from BMR neighbors and interested parties. c. Conduct reasonable follow-up investigation to assess potential BMR defaults including unit site visits. d. Scheduled appointments with BMR owners. e. For confirmed defaults, provide owners with list of actions needed to remedy the default and conduct follow-up to monitoring compliance. f. Maintaining log of actions taken to remedy the defaults. g. For those defaults in which the owners choose to not remedy the situation within a reasonable amount of time; Consultant will meet with City staff to determine the course of action to pursue. City authorization will be sought for any legal action taken. h. City will provide a list of any current BMR defaults and actions taken to date. 14. Consultant will develop annual performance measures for BMR program administration. These measures will be developed in conjunction with City staff. Performance measures will be included in annual BMR summary report. 15. Consultant shall conduct introductory Home Buyer Education/Training classes - Home Buyer Orientation Classes prior to BMR application 16. Consultant shall build and maintain a group of LOCAL (live or work in the City of Campbell) qualified and eligible BMR homebuyers at a minimum Buyer-to-Property ratio of 5:1 17. Consultant will partner with the City to create City legal templates for documents required for signature by the BMR participants. Consultant shall supply documents that are typically used in Santa Clara County for residential real estate transactions (e.g. purchase and sale, disclosure acknowledgements, addendums, etc.) 18. Consultant will create and maintain a list of approved loan officers and lending operations eligible to provide mortgage lending for purchase and refinance transactions 19. Consultant will review individual BMR restrictions for terms and requirements as needed including shared equity programs, down payment assistance loans and any resale restriction agreements. 20. Consultant will prepare City staff reports. EXHIBIT A -SCOPE OF SERVICES BMR A®MIMISTRATOR - HOUSEKEYS - In addition to onboarding the BMR Program, the HouseKeys team will provide the following services: A. Consultant enters into this contract with the City of Campbell with the intention of adding the City to the Model City Project that incorporates Industry Best Practices, A BMR Database, and a Regional BMR Working Group. This Project will improve efficiencies and reduce program costs to the City. B. Consultant will provide training, analysis and suggested improvements to the BMR Program C. Consultant will prepare a presentation for Staff and Council Members on the Model City Project EXHIBIT B -FEE SCHEDULE BMR ADMINISTRATOR - HOUSEKEYS Description Fee' Fee Cap / Max Billed To Program Administration $137,200.00/year ($11,433.33/month) City Loan Processing $1,250.00 per $1,250.00 per Owner /Lender Transaction Fee transaction2 transaction New BMR Sales 3% of Maximum Buyer (via Transaction Fee Sales Price $18,000.00 Sales Price) BMR Resale (compliant) 6% of Maximum , Buyer (via Transaction Fee New Sales Price $36,000.00 Sales Price) Acquisition (default) and 5% of Resale Restriction Price Maximum Buyer (via BMR Resale /Rehab - plus 5% of $60,000.00 Sales Price) Transaction Fee New Sales Price Application I.D. No fee No fee n/a Issuance Participant I.D. No fee No fee n/a Issuance Opportunity Drawing $25.00 $25.00 Applicant (Lottery) Entry Fee Application Fee $75.00 $75.00 Applicant Billing Rate for Projects $150.00 /hour $150.00 /hour City Outside of Contract Scope Fees may be lower pursuant to the relevant executed Agreement (e.g., developer agreement, owner resale restriction agreement, promissory note, etc.) Z 25% of the $1,250 loan processing fee ($312.50) paid by the owner/lender will be transferred to the City for administration and internal processing of the subordination /payoff request.