HomeMy WebLinkAboutReso - CC - 031-2020RESOLUTION NO. 31-2020
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH HOUSEKEYS, INC. FOR ADMINISTRATION OF THE CITY
OF BURLINGAME BELOW MARKET RATE HOUSING PROGRAM IN A NOT TO EXCEED
AMOUNT OF $150,000 OVER A ONE YEAR PERIOD
WHEREAS, on February 19 2008, the City of Burlingame contracted with Neighborhood
Housing Services of Silicon Valley (NHSSV) to provide administrative services for the City's BMR
Housing Program; and
WHEREAS, due to financial challenges stemming from the housing crash and the
recession, NHSSV closed its operation in June of 2015; and
WHEREAS, in order to minimize the disruption to the administration of the City's BMR
Housing Program, the City contracted with HouseKeys, Inc. on March 9, 2017, to continue
administration of the BMR Housing Program; and
WHEREAS, based on the number of existing BMR units and new BMR units anticipated
to be built in the coming year, the City desires to contract with HouseKeys, Inc. to establish a
more comprehensive administration of the BMR Housing Program; and
WHEREAS, there are adequate funds available in the Professional Services Contract
budget to cover administration of the BMR Housing Program for a period of one year; and
WHEREAS, because the agreement will authorize work in excess of $100,000, City
Council approval is required.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED:
The City Manager is authorized and directed to enter into a Professional Services
Agreement with HouseKeys, Inc. for below market rate administrative setup,
administration, and compliance monitoring for administration of the City's Below Market
Rate (BMR) Housing Program for a period of one year with the Scope of Work attached
to this resolution, for a maximum cost of $96,000 as stated in the Scope of Work, and a
not to exceed amount of $150,000 to cover additional services requested by the City or
an increase in the number of BMR units built within the first year.
2. The City Clerk is directed to attest to the signature of the City Manager upon execution of
the Professional Services Agreement.
ily Beac , 9 ayor
I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, certify that the foregoing
Resolution was introduced at a regular meeting of the City Council held on the 16' day of March,
2020, and was adopted thereafter by the following vote:
AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, O'BRIEN KEIGHRAN, ORTIZ
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Meaghan Hassel -Shearer, City
Toll Free: 1-877-460-KEYS (5397)
Office (By Appointment)
358 Digital Drive
HouseKeys Morgan Hill, CA 95037
Unlock Opportunity
March 4, 2020
Scope of Work & Fee Schedule
City of Burlingame Proposal — Multi -Family Rental Program
First Year Proposed Cost (56 Units)
1
Program Update
Up Front Startup
$30,000
2
Software Update
Up Front Startup
$6,000
3
Day -to -Day Admin First Year
Monthly
$60,000
Total
$96,000
Total First Year: $96,000
Program Scope
Existing Portfolio (13 Units)
#
Project
Property Address
Counter Party
Status
1
904 Bayswater
904 Baywater Avenue #6
Bo Thorenfeldt
Expires 6/5/2024
2
1225 Floribunda
1225 Floribunda Avenue #5
Zers Floribunda, LLC &
Leung Family Trust
Expires 7/2/2025
3
1226 El Camino
1226 El Camino Real #202
Patrick Fellows
Expires 6/1/2020
4
1321 El Camino
1321 El Camino Real #3
Milliken Enterprises
LP
Expires 7/2/2025
5
1800 Trousdale
1800 Trousdale Drive #207
Mills Trousdale LLC
Expires 10/29/2025
6
1800 Trousdale
1800 Trousdale Drive #203
Mills Trousdale LLC
Expires 10/29/2025
7
1800 Trousdale
1800 Trousdale Drive #203
Mills Trousdale LLC
Expires 10/29/2025
8
1838 Ogden Dr
1838 Ogden Drive #207
Mills Ogden Villa, LLC
Expires 1/30/2027
9
1838 Ogden Dr
1838 Ogden Drive #208
Mills Ogden Villa, LLC
Expires 1/30/2027
10
1838 Ogden Dr
1838 Ogden Drive #307
Mills Ogden Villa, LLC
Expires 1/30/2027
11
1838 Ogden Dr
1838 Ogden Drive #308
Mills Ogden Villa, LLC
Expires 1/30/2027
12
1838 Ogden Dr
1838 Ogden Drive #408
Mills Ogden Villa, LLC
Expires 1/30/2027
13
1838 Ogden Dr
1838 Ogden Drive #207
Mills Ogden Villa, LLC
Expires 1/30/2027
Page 1 of 7
Toll Free: 1-877-460-KEYS (5397)
Office (By Appointment)
358 Digital Drive
Morgan Hill, CA 95037
Upcoming Pipeline (43 Units)
#
Project Name
Unit Count
Description
Est. Delivery Date
1
Summerhill
29
Moderate 120% AMI
25 Years
TBD
2
1509 El Camino Real
1
Moderate 120% AMI
10 Years
TBD
3
920 Bayswater Ave
13
Moderate 120% AMI
30 Years
TBD
Total
43
Note: Cost estimate based on a 16-hour average to deliver an eligible tenant and a project 8 Applicants per
delivered tenant. This number equates to $2,400 per unit.
Program Update and Pipeline Services
Scope Area
Scope Tasks and Details
Cost
1. Program Update
1. Assist with Staff Reports and Council Presentations
One -Time Fee
2. Update Policy and Procedure Guide for City Program
$30,000
3. Update online system to manage applicant files
4. Update MyHouseKeys program for application intake and
processing according to City policies
[Paid Up Front]
5. Update Program Web Pages
6. Update forms for application, file submission, approvals,
denials, and escalations
7. Existing client list notifications to push applicants to
MyHouseKeys site
8. Create Customer Service and Program Evaluation Survey
9. Signature Routing Procedure Setup
10. File Management Procedure Setup
11. Setup Office Hours in Burlingame to deal with Applicant
Flow
2. Software
1. Setup Application ID Roster
One -Time Fee
Update
2. Setup Program Profile Page
$6,000.00
3. Setup Project Profile Page
4. Create Opportunity Profile Page for each available for -rent
unit
5. Create Opportunity Drawing Profile Page for each of the
Drawings (AKA "Lotteries") that will be held to group
Application IDs and Opportunity IDs together and select
the winning tenant prospect
6. Daily and Weekly Update to Team, City, and Developer
Partners
Page 2 of 7
Toll Free: 1-877-460-KEYS (5397)
Office (By Appointment)
358 Digital Drive
Morgan Hill, CA 95037
3. Day to Day 1. Maintain Applicant Pool Reporting First Year
Administration 2. Field Inbound Communications via phone, email, and $60,000
other correspondence
3. 12 Program Workshops in first year
Program Applicants 4. Develop Project -Specific Marketing Collateral
5. Ongoing reports and meetings with staff and developer
6. Marketing & Outreach
7. Eligibility Screening and Pre -Qualification
8. Application Coordination
9. Opportunity Drawing (AKA "Lottery") Management and
Coordination
10. Transaction Coordination for tenant screening and lease
signing
11. Post -Lease -Up Setup to transition Applicants to Program
Participants (Annual Compliance Certifications)
12. File Management (City Clerk)
13. Ongoing Customer Service & Support
14. Ongoing Staff Reporting and Council Presentations
Program Portfolio Services
Scope Area
Scope Tasks and Details
Cost
4. Portfolio
1. Facilitate Customer Service Tickets for Existing
Included in First
Management
2. Landlord Communication
Year Cost
a. Setup Marketing and Staging
Program Participants
b. Coordinate Tenant Prospect Meeting
3. Re -Lease Activity
a. Re -Lease Requirement Review
b. Lease Calculation and Market Analysis
c. Develop unit -specific marketing collateral
d. Coordinate Applicant Pool and Setup
Opportunity Drawing (AKA "Lottery")
4. Ongoing Staff Reporting and Council Presentations
5. Compliance &
6. Annual Compliance Review
Included in First
Loss Mitigation
a. Issue Correspondence
Year Cost
b. Run daily scans of portfolio for potential loss
events by building owners (e.g. foreclosures,
Enforcement activity
bankruptcies)
is billed as Special
c. Manage Loss Mitigation and Default Process
Page 3 of 7
Toll Free: 1-877-460-KEYS (5397)
Office (By Appointment)
358 Digital Drive
Morgan Hill, CA 95037
d. Through Assignment of Asset, manage legal Project Fee (See #2 on
proceedings (see fee schedule) Fee Schedule)
Fee Schedule
#
Transaction Type
Fee
Fee Cap
Billed to:
Max Fee
1
Lease -Up and Re -Lease Fee
$1,500
$1,500
Charged to
Builder
2
Billing Rate for Projects Outside of Agreed
$250/hour
Per
See
Scope
I
Agreement
Agreement
3
Application Fee Paid After Opportunity
$75.00*
$75.00
Applicant*
Drawing and Upon File Request to Applicant
1. HouseKeys has nearly 10,000 households in its system. Each of these Household I.D. holders can apply to all the
cities in our portfolio including Morgan Hill, Gilroy, San Ramon, Santa Clara, etc. We will soon create a fee schedule that
keeps it free for households to seek Application I.D.s for a primary city, but asks them to "upgrade" their account to a $25
annual fee to be able to apply to all cities in the HouseKeys system.
2. This fee is paid by Application I.D. holders who enter a Drawing and receive a File Request to begin processing their
full file and determine eligibility and qualification of the applicant. This process requires verification of tax returns, income,
household membership, identification, and credit report.
HouseKeys Team
#
Position
Role
Name
Phone
Email
1
Program Manager
Oversight of the
Julius Nyanda
408-684-
Julius housekeys.org
Organization &
8202
Program
2
Program
Program
Abraham
408-712-
abraham(a_housekeys.org
Relationship
Education &
Valle
3761
Manage
Partnerships
3
Program Asset
Transactions,
Christina
408-684-
christina(abhousekeys.org
Manager
Program
Enriquez
8788
Inventory &
Compliance
4
Program
Existing
Katarina
408-684-
katarina(o)houseke ss.org
Transaction
Owners,
Marusic
8291
Coordinator
Program
Inventory, New
Construction,
Tenant Mgmt.
Specialist
Page 4 of 7
Toll Free: 1-877-460-KEYS (5397)
Office (By Appointment)
358 Digital Drive
Morgan Hill, CA 95037
5
Program
Ticket Handling
Kamala
408-684-
kamala@housekeys.orq
Operations
& Application
Loving
8364
Coordinator
Pre
6
Program
Applicant
Kathie Wells
408-684-
Kathie(a-)_housekeys.org
Underwriter
Eligibility and
8831
Participant
Compliance
7
Program Processor
Applicant &
Mandy Israde
408-684-
mandy(a housekeys.org
Participant File
8830
Management
8
Real Estate Project
Rehab/Remodel
John Ash
408-592-
iohn(a�housekeys.org
Manager
projects and site
7884
inspection for
BMR Units
under
construction
9
Technology
Design and
Everett Bobby
N/A
bobbyCa.housekeys.org
Manager &
Implementation
Gasper
Database Engineer
of Data Model,
Database &
Initial Prototype
10
Analytics Engineer
Program
Jeron Wong
N/A
jeron ,housekeys.orq
Calculators,
Dashboard and
Analytics
Programs for
Internal
Reporting
11
Software Engineer
Interface and
Kunal Bohra
N/A
kunal(a)housekeys.org
Integrations
12
Server
Server
Frank Adams
N/A
frank housekeys.org
Administrator &
Capabilities,
API Engineer
Security, API
Engineering,
and External
Data Sourcing
Page 5 of 7
Toll Free: 1-877-460-KEYS (5397)
Office (By Appointment)
358 Digital Drive
HOUs E'�(5 Morgan Hill, CA 95037
Unlock Opportunity
Organizational Profile
Nyanda & Associates, LLC d/b/a HouseKeys
358 Digital Drive, Morgan Hill, CA 95037
Main Phone Line: 1-877-460-KEYS (5397)
Website: www.housekeVs.org
Email: programsCcDhousekeys.orq
Primary Contact: Julius Nyanda, CEO/Program Manager
a ulius(o-)housekeys.org
Office Line: 408-684-8202
Cell Phone: 415-846-8004
Note: No claim, lawsuit, or litigation to report
The HouseKeys Organization: A Modern Social Enterprise
HouseKeys was started in April of 2015 in response to the void left by the wind down of several
Silicon Valley nonprofit housing, lending, and counseling service providers. In our 3-year history,
HouseKeys has been able to create a sustainable service model through public agency contracts and
transaction revenue. As former employees of well -established nonprofit entities that folded after
decades of service to the community, the HouseKeys team has reengineered the social enterprise
model to ensure long-term sustainability through a combination of economically -conscious measures
and market -driven solutions. Our experienced team has collaborated over the last ten years, while at
different employers, to complete nearly 1,000 program for -sale transactions and manage hundreds of
multi -family units during initial new construction lease -up, annual compliance and tenant turnover.
There are entire residential housing projects throughout the Bay Area where one of us has had a role
as either an agent, lender, counselor, or developer. The lessons learned from this work have enabled
us to build the HouseKeys organization, program marketplace, administration platform, and
information management system. In addition to the LLC, the HouseKeys team formed the nonprofit
agency, HouseKeys Resource & Education Center Inc. (Tax I.D. 81-2880185) which obtained federal
tax-exempt status in the summer of 2017. To facilitate real estate transactions, HouseKeys utilizes its
state -licensed brokerage subsidiary, HouseKeys Services Corporation (Cal BRE# 02001942). Our
strategic plan calls for an approach that utilizes our position as a service provider, educator, and
technology company that can apply for grant dollars, attract equity from social investors, and
continually cover operating costs through earned income.
Technology & the Program Marketplace
In December of 2015, HouseKeys began recruiting an in-house technology team and building a
program marketplace and management platform that not only delivers value to our public agency
clients, but also has a direct -to -consumer interface that serves a subscriber base of prospective
program applicants and current program participants. After testing other database systems, resource
planners, and relationship management tools, HouseKeys decided to build its own database -driven
Page 6 of 7
Toll Free: 1-877-460-KEYS (5397)
Office (By Appointment)
358 Digital Drive
Morgan Hill, CA 95037
system, from the ground up, to facilitate program administration activities throughout the housing
supply chain and program workflow. Instead of downloading forms and exchanging emails, our users
will create a household or entity account and enter an end -to -end program marketplace that houses
the direct and 31d party relationships needed to successfully complete program transactions. Users
participate in a streamlined process that reduces paperwork, improves communication, and
generates valuable, real-time program data. HouseKeys launched the consumer applicant portal in
the Summer of 2018 and is continually integrating new features.
Content & Media Library
Program awareness is a major concern at HouseKeys. While studies and statistics show that over
70% of households fall within an eligible income category, most of the public is unaware of the
housing opportunities made available through local programs. Land Use and Tax Credit Policies are
the primary tool used to generate affordable housing, and yet maintaining a pool of eligible and
qualified prospective applicants is critical to getting units occupied and attracting funding from
financial institutions. Between our illustrations, animated segments, podcasts, and weekly radio show
— we strive to reach the public, build interest in the programs, and increase participation. This helps
us navigate the low pull -through associated with finding motivated applicants who are both eligible
and qualified.
Our Team
At the core of our capabilities is our close-knit and highly capable team of dedicated practitioners.
Each plays a specialized role in providing the expertise needed to design and implement programs,
determine household eligibility, manage program transactions, ensure compliance, and manage
information. HouseKeys has spent a significant amount of time learning about the defensibility of
program contracts through litigation and negotiation activity in cases where program violations
occurred. Whether the administrative response required new local laws to be enacted by the public
agency, updated contract language or new enforcement policies - our team has consistently been
responsive and effective. From 2016 to 2018, we had full-time, in-house counsel on staff, and
worked as a team to design our legal strategy to function like an outside collection agency. In 2018,
we transitioned from in-house counsel, to keeping attorneys on retainer to deal with cases as they
come up.
Page 7 of 7