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.