Attachment_A_RFI_Trust_ADU_-_AA_-Final.pdf

REQUEST FOR INFORMATION

FOR

ACCESSORY DWELLING UNIT PROGRAM

RFI NO. 012-2777003-AA

Date of Issuance: December 12, 2024

Responses Due: January 3, 2025

2:00 pm (Pacific Time)

RFI for ACCESSORY DWELLING UNIT PROGRAM RFI No. 012-2777003-AA

County of Orange RFI # 012-2777003-AA Page 2 of 9 OC Community Resources - OCCR Accessory Dwelling Unit Program

I. INTRODUCTION

II. SCOPE OF SERVICES

III. QUESTIONNAIRE

IV. ANTICIPATED SCHEDULE

V. CONTACT INFORMATION

VI. GENERAL TERMS AND CONDITIONS

VII. INDEMNIFICATION AND INSURANCE PROVISIONS

VIII. DISCLAIMER

IX. RESPONSE REQUIREMENTS

X. OVERVIEW OF DESIRED QUALIFICATIONS

XI. CONFLICT OF INTEREST DISCLOSURE STATEMENT

XII. ORANGE COUNTY HOUSING FINANCE TRUST DISCLOSURE OF CONTRIBUTIONS

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I. INTRODUCTION

Following a Request for Proposal solicitation for the ADU Program services which yielded no responsive proposals, The Orange County Housing Finance Trust (Trust) is seeking information pursuant to this Request for Information (RFI) from your organization to support in the development and implementation of the Trust’s Affordable Accessory Dwelling Unit Loan Program (ADU Program). Respondents may propose qualifications and information for one or more services requested in this RFI. The Trust may enter into discussions with one, none or multiple Respondents for each service components as the Trust deems it to be in its best interest. See Section SCOPE OF SERVICES in this RFI for further details about the service components. The responses to this RFI may result in an offer for one or more contracts with the Trust.

II. SCOPE OF SERVICES

Background:

The Trust is a Joint Powers Authority formed in March 2019 between the County of Orange and twenty-seven (27) member cities in Orange County. The mission of the Trust is to strengthen the communities in Orange County by financing the development of affordable housing for homeless and low-income individuals and families.

To further that end, the Trust applied for grant funding to create the ADU Program in January 2023. In the Trust’s application for funding with CalOptima, the Trust envisioned that the ADU Program would provide substantial financial incentives to homeowners throughout Orange County to construct Accessory Dwelling Units (ADUs) on their residential property. In exchange for the loan, the property owner would agree to a ten (10) year term of affordability covenant limiting tenancy to residents at or below fifty percent (50%) of area median income (AMI). Based on this proposal, CalOptima awarded The Trust with a four-million-dollar ($4,000,000) grant to develop the ADU Program. The Trust entered into a Grant Agreement with CalOptima in April of 2023.

Since entering the Grant Agreement, the Trust has diligently attempted to develop and administer the ADU Program. The Trust developed a Policy Manual, drafted loan documents, and applied for additional grant funding. The Trust applied for and received approval for an additional $4,000,000 grant from the Southern California Association of Governments (SCAG). That additional grant will be available once the ADU Program is running.

It became evident that the Trust, as a Joint Powers Authority does not have current staffing to administer the ADU Program. The Trust published a Request for Proposals (RFP) on May 17, 2024 to outsource the fulfillment and servicing responsibilities of the ADU Program to an experienced firm, aiming to achieve efficient, cost-contained, and legally compliant loan administration. The RFP stated that the Trust would retain responsibilities for promoting and disseminating information on the ADU Program, manage and select potential applicants from the interest list, and review and provide final approval to ensure compliance of the participating homeowner with the Program terms.

Unfortunately, the RFP garnered only one response which was non-responsive. The Trust has thus decided to publish this RFI.

Scope of Work

The Trust is now in search of an experienced firm to assist or partner with the Trust to fulfill the ADU Program. The Trust is open to review different avenues in fulfilling the ADU Program so long as it meets with the guidelines of the Grant Agreement as well state and federal laws. The Trust is looking for unique

County of Orange RFI # 012-2777003-AA Page 4 of 9 and innovative solutions for services in whole and in part, including but not limited to administration, technical assistance, loan fulfillment, and loan servicing for the ADU Program. The following documents are attached for your reference and review:

1) Attachment B: CalOptima Grant Agreement with the Trust

2) Attachment C: Trust ADU Policy Manual

3) Attachment D: Trust’s Application for SCAG Grant

4) Attachment E: Template for ADU Loan Note

5) Attachment F: OCHFT Template Agreement Containing Covenants

6) Attachment G: OCHFT Template ADU Loan Agreement

7) Attachment H: Template Deed of Trust

III. QUESTIONNAIRE

A. Company Information Please provide your company name and headquarters mailing address* *Response required

Please provide your company website URL, if applicable* *Response required

Please provide your company’s DUNS Number* *Response required

Please provide primary contact name(s), telephone number(s), and email address(es)* *Response required

Please provide how long your organization has provided the services outlined in the Scope of Services.* *Response required

Please describe the current programs your organization administers including identifying the jurisdiction where services are provided* *Response required

Campaign Contribution Disclosure Form* Please complete and provide the following forms (which can be found at the end of this RFI):

Conflict of Interest Disclosure Statement

Disclosure of Contributions

*Response required

B. Scope of Services Upload Response to the Scope of Services Section* *Response required

IV. ANTICIPATED SCHEDULE

NOTICE: These dates represent a tentative RFI timeline. The Trust reserves the right to modify these dates at any time.

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[NEED DATES]Ray do

Schedule of Activities Time Date Q&A deadline 2:00 p.m. December 27, 2024

RFI submission due date 2:00 p.m. January 3, 2025

V. CONTACT INFORMATION

All questions about this RFI are to be submitted via Orange County’s Online Bidding System no later than by December 27, 2024. For OpenGov assistance only, please contact OpenGov Support at procurement-support@opengov.com or via the live chat option on the site.

VI. GENERAL TERMS AND CONDITIONS

A. The Trust shall not be liable for any expenses incurred by Respondent in the preparation and submission of information in response to this RFI. These expenses include, but not limited to: a) Preparing response to this RFI; b) Submitting the response to the Trust; c) Discussions with the Trust regarding any matter related to the RFI; and d) any other expenses incurred by the Respondents prior to the date of any potential contract award and execution, if any.

B. Responses received by the Trust may be public record and subject to public disclosure in accordance with the California Public Records Act. Responses are not to be marked as confidential or proprietary. Unless otherwise prohibited by law, all responses shall become the property of the Trust and the Trust reserves the right to make use of any information or ideas in the responses submitted.

C. Respondent acknowledges and agree that the Trust is not obligated to include Respondent in any future solicitation process or enter into any contracts because Respondent has submitted a response to this RFI.

D. Respondent agrees that it will not issue any news releases in connection with either the RFI or any subsequent amendment of or effort under this RFI without first obtaining review and written approval of said news releases from the Trust.

E. Respondents will be evaluated based on the responses to the questions in Section III: Questionnaire.

F. Protest Procedures

Throughout the solicitation and contracting process, Trust staff and stakeholders are to follow procurement best practices to avoid or mitigate potential protests. However, any actual or prospective bidder (aka “interested party”) who is aggrieved in connection with the solicitation or award of a contract may file a protest with the Trust Manager.

The Trust Manager has the authority to settle and resolve protests and contract claims. All protests must be in writing and include the name, address, telephone number, email and signature of the of the interested party; the solicitation or contract number; a detailed statement of the legal and factual grounds of the protest, including copies of relevant documents; and the form of relief requested.

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Protests concerning solicitations should be filed not less than five (5) working days before the solicitation due date. Protests concerning contract awards shall be filed no later than seven (7) days after issuance of the intent to award. The Trust Manager, without waiving the Trust's right to dismiss the protest for lack of timeliness, may consider a protest that is not filed timely. The Trust Manager shall give notice of the protest to the successful contractor if award has been made or, if no award has been made, to all interested parties. Material submitted by a protestor shall not be withheld from any interested party except to the extent that the withholding of information is permitted or required by law.

While a protest is in progress, the Trust may proceed with the solicitation or the contract unless the Trust Manager determines there is a reasonable probability that the protest will be sustained or that the stay of procurement is not contrary to the substantial interests of the Trust. The Trust Manager shall issue a written decision to the protestor within 14 days, including an explanation of the basis of the decision and a statement of the available appeals process. If the protest is sustained, in whole or part, the Trust Manager shall implement a remedy appropriate to the circumstances.

A protestor may appeal the decision of the Trust Manager to the Trust Board of Directors within seven (7) days from the date the decision is issued. The appeal shall contain all the information originally set forth in the protest, a copy of the decision of the Trust Manager; and the specific factual or legal error in the decision of the Trust Manager that forms the basis of the appeal. A decision by the Trust Board of Directors shall be final.

G. DUNS Number

The DUNS number is a unique 9-digit identifier issued and maintained by Dun & Bradstreet (D&B) that verifies the existence of a business entity. The DUNS number is needed to coordinate with the System for Award Management (SAM) that combines federal procurement systems and the Catalog of Federal Domestic Assistance into one new system. https://www.SAM.gov

The DUNS number must be provided to Trust as part of this RFI. Respondent shall ensure all DUNS information is up to date and the DUNS number status is “active,” and in good standings prior to execution of any Contract resulting from this RFI.

If Trust cannot access the Respondent’s DUNS information related to this federal sub award on the Federal Funding Accountability and Transparency Act Sub award Reporting System (SAM.GOV) due to errors in the Respondent’s data entry for its DUNS number, the Respondent must immediately update the information as required.

VII. INDEMNIFICATION AND INSURANCE PROVISIONS

A. Indemnification

Contractor agrees to indemnify, defend with counsel approved in writing by Trust, and hold Trust, its appointed officials, officers, employees, agents (“Trust Indemnitees”) harmless from any claims, demands or liability of any kind or nature, including but not limited to personal injury or property damage, arising from or related to the services, products or other performance provided by Contractor pursuant to this

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Contract. If judgment is entered against Contractor and County by a court of competent jurisdiction because of the concurrent active negligence of County or County Indemnitees, Contractor and County agree that liability will be apportioned as determined by the court. Neither Party shall request a jury apportionment.

Notwithstanding anything stated above, nothing contained herein shall relieve Contractor of any insurance requirements of obligations created elsewhere in this Contract.

B. General Insurance Requirements

Prior to the provision of services under this Contract, the Contractor agrees to carry all required insurance at Contractor’s expense, including all endorsements required herein, necessary to satisfy the County that the insurance provisions of this Contract have been complied with. Contractor agrees to keep such insurance coverage current, provide Certificates of Insurance, and endorsements to the County during the entire term of this Contract.

Contractor shall ensure that all subcontractors performing work on behalf of Contractor pursuant to this Contract shall be covered under Contractor’s insurance as an Additional Insured or maintain insurance subject to the same terms and conditions as set forth herein for Contractor. Contractor shall not allow subcontractors to work if subcontractors have less than the level of coverage required by County from Contractor under this Contract. It is the obligation of Contractor to provide notice of the insurance requirements to every subcontractor and to receive proof of insurance prior to allowing any subcontractor to begin work. Such proof of insurance must be maintained by Contractor through the entirety of this Contract for inspection by County representative(s) at any reasonable time.

All self-insured retentions (SIR)’s shall be clearly stated on the Certificate of Insurance. Any SIR in excess of Fifty Thousand Dollars $50,000 shall specifically be approved by the County’s Risk Manager, or designee. The County reserves the right to require current audited financial reports from Contractor. If Contractor is self-insured, Contractor will indemnify the County for any and all claims resulting or arising from Contractor’s services in accordance with the indemnity provision stated in this contract.

If the Contractor fails to maintain insurance acceptable to the County for the full term of this Contract, the County may terminate this Contract.

Qualified Insurer

The policy or policies of insurance must be issued by an insurer with a minimum rating of A- (Secure A.M.

Best's Rating) and VIII (Financial Size Category as determined by the most current edition of the Best's Key Rating Guide/Property-Casualty/United States or ambest.com). It is preferred, but not mandatory, that the insurer be licensed to do business in the state of California (California Admitted Carrier).

If the insurance carrier does not have an A.M. Best Rating of A-/VIII, the CEO/Office of Risk Management retains the right to approve or reject a carrier after a review of the company's performance and financial ratings.

The policy or policies of insurance maintained by the Contractor shall provide the minimum limits and coverage as set forth below.

Increased insurance limits may be satisfied with Excess/Umbrella policies. Excess/Umbrella policies when required must provide Follow Form coverage.

All insurance policies required by this Contract shall waive all rights of subrogation against the County of Orange, its elected and appointed officials, officers, employees, and agents when acting within the scope of their appointment or employment.

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Contractor shall provide thirty (30) days prior written notice to the County of any policy cancellation or non-renewal and ten (10) days prior written notice where cancellation is due to non-payment of premium and provide a copy of the cancellation notice to County. Failure to provide written notice of cancellation may constitute a material breach of the Contract, upon which the County may suspend or terminate this Contract.

Insurance certificates should be forwarded to the agency/department address listed on the solicitation.

If the Contractor fails to provide the insurance certificates and endorsements within seven (7) days of notification by CEO/Purchasing or the agency/department purchasing division, award may be made to the next qualified vendor.

County expressly retains the right to require Contractor to increase or decrease insurance of any of the above insurance types throughout the term of this Contract. Any increase or decrease in insurance will be as deemed by County of Orange Risk Manager as appropriate to adequately protect County.

County shall notify Contractor in writing of changes in the insurance requirements. If Contractor does not provide acceptable Certificates of Insurance and endorsements to County incorporating such changes within thirty (30) days of receipt of such notice, this Contract may be in breach without further notice to Contractor, and County shall be entitled to all legal remedies.

The procuring of such required policy or policies of insurance shall not be construed to limit Contractor's liability hereunder nor to fulfill the indemnification provisions and requirements of this Contract, nor act in any way to reduce the policy coverage and limits available from the insurer.

E. Commercial General Liability

Minimum limits and coverage

$1,000,000 per occurrence; $2,000,000 aggregate

Required Coverage Forms

The Commercial General Liability coverage shall be written on occurrence basis utilizing Insurance Services Office (ISO) form CG 00 01, or a substitute form providing liability coverage at least as broad.

Required Endorsements

The Commercial General Liability policy shall contain the following endorsements, which shall accompany the Certificate of Insurance:

A. An Additional Insured endorsement using ISO form CG 20 26 04 13, or a form at least as broad naming the County of Orange its elected and appointed officials, officers, employees, and agents as Additional Insureds, or provide blanket coverage, which will state As Required by Written Contract.

B. A primary non-contributory endorsement using ISO form CG 20 01 04 13, or a form at least as broad evidencing that the Contractor's insurance is primary, and any insurance or self-insurance maintained by the County shall be excess and non-contributing.

The Commercial General Liability policy shall contain a severability of interests clause also known as a “separation of insureds” clause (standard in the ISO CG 0001 policy).

F. Automobile Liability including coverage for owned, non-owned and hired vehicles

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Minimum limits and coverage

$1,000,000 combined Single Limit

Required Coverage Forms

The Business Auto Liability coverage shall be written on ISO form CA 00 01, CA 00 05, CA 0012, CA 00 20, or a substitute form providing coverage at least as broad.

G. Workers Compensation

Minimum limits and coverage

Statutory

Required Endorsements

The Workers’ Compensation policy shall contain a waiver of subrogation endorsement waiving all rights of subrogation against the County of Orange, its elected and appointed officials, officers, agents, and employees or provide blanket coverage, which will state As Required by Written Contract.

H. Employers Liability Insurance

Minimum limits and coverage

$1,000,000 per accident or disease

VIII. DISCLAIMER

Responses to this RFI may result in a contract with the Trust. All information received in response to this RFI will not be returned. Respondents are solely responsible for all expenses associated with responding to this RFI, as noted above.

IX. RESPONSE REQUIREMENTS

OC Community Resources (OCCR) – OCCR is requesting one (1) electronic copy uploaded on the Orange County’s Online Bidding System to be submitted no later than January 3, 2025 . Fax responses will not be allowed.

X. OVERVIEW OF DESIRED QUALIFICATIONS

Respondents must possess demonstrated experience in one or more stages of the home mortgage loan process in the State of California, including origination, underwriting, fulfillment, closing, and servicing.

Respondents must show demonstrated track record of compliance with state lending laws and successful loan program outcomes. Experience specifically focused on ADU financing is a plus.

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XI. CONFLICT OF INTEREST DISCLOSURE STATEMENT

DISCLOSURE POLICY

It is the policy of the Trust to ensure that firms and individuals providing services to the Trust are not subject to the organizational conflicts affecting their objectivity or their ability to provide impartial assistance or advice to the Trust. This form requires certain relationships to be disclosed to the Trust so that it may determine whether a potential organizational conflict exists and whether mitigation measures may be implemented so as to allow the firm or individual to perform services notwithstanding such potential conflict. Relationships with the following entities must be disclosed:

1) Any firm, individual, partnership, corporation, association or other legal entity currently retained for services by a developer of affordable housing or service provider for families and individuals at risk of or experiencing homelessness.

2) Any firm currently retained or which may be retained for services by the Orange County Housing Finance Trust or any member city of the Trust or other public entity within Orange County, California (see list of member agencies below).

DISCLOSURE

1) ______ Consultant IS currently retained for services as defined in the Disclosure Policy above.

2) ______ Consultant IS NOT currently retained for services as defined in the Disclosure Policy above.

a) Consultant is retained for services by the following member agencies of the Trust

__ County of Orange __ City of Laguna Niguel

__ City of Aliso Viejo __ City of La Habra

__ City of Anaheim __ City of Mission Viejo

__ City of Buena Park __ City of Newport Beach

__ City of Costa Mesa __ City of Orange

__ City of Dana Point __ City of Placentia

__ City of Fountain Valley __ City of San Juan Capistrano

__ City of Fullerton __ City of Santa Ana

__ City of Garden Grove __ City of Seal Beach

__ City of Huntington Beach __ City of Stanton

__ City of Lake Forest __ City of Tustin

__ City of Laguna Beach __ City of Westminster

__ City of Laguna Hills

b) Consultant is required to disclose to the Trust, in writing, any service relationship which may be entered into during the term of the Contract, which violates or appears to violate the intent of this Disclosure:

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CONSULTANT

DATE

AUTHORIZED REPRESENTATIVE

TITLE

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XII. ORANGE COUNTY HOUSING FINANCE TRUST

DISCLOSURE OF CONTRIBUTIONS

The attached Disclosure of Contributions form must be completed by applicants for, or persons who are the subject of, any proceeding involving a license, permit, or other entitlement for use, including most contracts and franchises, pending before the Trust Board members.

IMPORTANT NOTICE

Government Code section 84308 (also known as the “Levine Act”) contains requirements that are summarized generally as follows:

A. If you are an applicant for, or the subject of, any proceeding involving a license, permit, or other entitlement for use, you are prohibited from making a campaign contribution of more than $250 to any Trust Board member who may participate in your proceeding. This prohibition begins on the date your application is filed or the proceeding is otherwise initiated, and the prohibition ends 12 months after a final decision is rendered by the Trust Board. In addition, no Trust Board member or other official who may participate in your proceeding may solicit or accept a campaign contribution of more than $250 from you during this period.

B. These prohibitions also apply to your agents, and, if you are a closely held corporation, to your majority shareholder as well. These prohibitions also apply to your subcontractor(s), joint venturer(s), and partner(s) in this proceeding. Also included are parent companies and subsidiary companies directed and controlled by you, and political action committees directed and controlled by you.

C. You must file the attached disclosure form and disclose whether you or your agent(s) have in the aggregate contributed more than $250 to any Trust Board member or other officer who may participate in your proceeding during the 12-month period preceding the filing of the application or the initiation of the proceeding.

D. If you or your agent have in the aggregate contributed more than $250 to any individual Trust

Board member or other officer who may participate in your proceeding during the 12 months preceding the decision on the application or proceeding, that Trust Board member or other officer must disqualify himself or herself from the decision. However, disqualification is not required if the Trust Board member or other official returns the campaign contribution within 30 days from the time the member or official knows, or should have known, about both the contribution and the fact that you are a party in the proceeding. The Disclosure of Contributions form should be completed and filed with your application or proposal, or with the first written document you file or submit after the proceeding commences.

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1. A proceeding involving “a license, permit, or other entitlement for use” includes all business, professional, trade and land use licenses and permits, and all other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor or personal employment contracts), and all franchises.

2. Your “agent” is someone who represents you in connection with a proceeding involving a license, permit or other entitlement for use. If an individual acting as an agent is also acting in his or her capacity as an employee or member of a law, architectural, engineering, consulting firm, or similar business entity, both the business entity and the individual are “agents.”

3. To determine whether a campaign contribution of more than $250 has been made by you, campaign contributions made by you within the preceding 12 months must be aggregated with those made by your agent within the preceding 12 months or the period of the agency relationship, whichever is shorter. Contributions made by your majority shareholder (if a closely held corporation), your subcontractor(s), your joint venturer(s), and your partner(s) in this proceeding must also be included as part of the aggregation.

Campaign contributions made to different Trust Board members or other officers who may participate in your proceeding are not aggregated.

4. A list of the Trust Board members and other officials is attached.

This notice summarizes the major requirements of Government Code section 84308 of the Political Reform Act and California Code of Regulations, Title 2 sections 18438.1-18438.8.

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DISCLOSURE OF CONTRIBUTIONS FORM

To be completed with the submission of any proposal.

Prime Firm’s Name:

Party’s Name:

Party’s Address:

Street City, State

Zip Code Phone Number

Board Member(s) to whom you and/or your agent made campaign contributions and dates of contribution(s) in the last 12 months.

Name of Member:

Name of Contributor (if other than Party):

Date(s):

Amount(s):

Name of Member:

Name of Contributor (if other than Party):

Date(s):

Amount(s):

If no contributions are noted above, I hereby certify that no contributions have been made by the Party identified above to any of the Trust’s Board of Directors.

Date Signature of Party and/or Agent

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List of Board Members

Chair Katrina Foley County of Orange Supervisor – 5th District

Vice-Chair Jessie Lopez

City of Santa Ana – Council Member

Board Member Shari Freidenrich County of Orange Treasurer-Tax Collector

Board Member Vicente Sarmiento

County of Orange Supervisor – 2nd District

Board Member Norma Kurtz City of Anaheim – Council Member

Board Member Mike Frost

City of Dana Point – Council Member

Board Member Gracey Van Der Mark City of Huntington Beach – Council Member

Board Member Andrew Hamilton

County of Orange Auditor-Controlled