CTCAC01-25_-_FINAL_RFP_(04-15-25).pdf

CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE

901 P Street, Suite 213A Sacramento, CA 95814 p (916) 654-6340 f (916) 654-6033 www.treasurer.ca.gov/ctcac

MEMBERS

FIONA MA, CPA, Chair

State Treasurer

MALIA M. COHEN

State Controller

JOE STEPHENSHAW

Director of Finance

REQUEST FOR PROPOSALS NO. CTCAC01-25

ASSET MANAGEMENT SERVICES

NOTICE TO PROSPECTIVE PROPOSERS

GUSTAVO VELASQUEZ

Director of HCD

VACANT

Executive Director of CalHFA

EXECUTIVE DIRECTOR

MARINA WIANT

April 15, 2025

You are invited to review and respond to the Request for Proposals (RFP), entitled Asset Management Services (RFP CTCAC01-25). In submitting your proposal, you must comply with these instructions.

Proposals for these services must comply with the instructions included in this RFP. The RFP includes the Sample Standard Agreement the selected firm will be expected to execute. The agreement that will be entered into the State of California (State) will include by reference the General Terms and Conditions and Contractor Certification Clauses which may be viewed and downloaded online at https://www.dgs.ca.gov/OLS/Resources/Page- Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language The General Terms and Conditions and all Exhibits that are a part of the Sample Standard Agreement are not negotiable. By submitting a proposal, your firm agrees to the terms and conditions stated in this RFP.

The California Tax Credit Allocation Committee (CTCAC) is soliciting proposals from asset management firms to provide financial asset management monitoring services and physical property inspections for 49 ARRA funded low-income housing tax credit projects.

The contract will be for a two (2) year term for a dollar value not to exceed $735,500.00 ($367,500.00 per year) with an option to extend the contract for one additional year for a dollar amount not to exceed $367,500.00. CTCAC has established a maximum annual asset management monitoring fee of $7,500 per project. Please refer to the attached Cost Proposal Worksheet (Attachment 6) to outline the cost portion of your submitted proposal.

Read the attached document carefully.

The response due date is May 9, 2025 at 4:00 p.m. PT. Please submit one (1) unbound original and four (4) copies of your response to this RFP in hard copy form either in person or via U.S. mail or courier service to the department contact below:

California Tax Credit Allocation Committee

Attn: Phyllis Blanton 901 P Street, Suite 213A

(916) 654-6340

If you have any questions related to this solicitation or should you need any clarifying information, please contact Phyllis Blanton via email at phyllis.blanton@treasurer.ca.gov.

Thank you for your interest in doing business with the California Tax Credit Allocation Committee.

http://www.treasurer.ca.gov/ctcac https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language mailto:phyllis.blanton@treasurer.ca.gov

Table of Contents

Section Page

A) Purpose and Description of Services

1) Introduction

2) Purpose.…………………………………………………………………………….……

3) Scope of Work

4) Term of Agreement

B) Minimum Qualifications for Proposers

C) Proposal Requirements and Information

1) Key Action Dates

2) Questions and Answers

3) Content and Format of Proposals

4) Submission of Proposals

5) Evaluation Process

6) Award and Protest

7) Disposition of Proposals

8) Agreement Execution and Performance

D) Preference and Inventive Programs

1) Small Business or Microbusiness Preference

2) Non-Small Business or Microbusiness Preference

3) Disabled Veteran Business Enterprise (DVBE) Participation (optional)

4) Target Area Contract Preference Act (TACPA)

E) Required Attachments

1) Required Attachment Checklist

2) Proposal/Proposer Certification Sheet

3) Minimum Qualifications Certification

4) Resumes of Key Personnel & Experience

5) Proposer References

6) Cost Proposal Worksheet

7) Payee Data Record (STD 204)

8) Contractor’s Certification Clauses (CCC 04/2017)

9) Darfur Contracting Act Certification

10) California Civil Rights Law Certification

11) Bidder Declaration (GSPD-05-105)

12) Generative Artificial Intelligence (GenAI) Notification

13) Small Business or Microbusiness Preference (if applicable)

14) Non-Small Business or Microbusiness Preference (if applicable)

15) Disabled Veterans Business Enterprise (DVBE) Program Instructions (if applicable)

16) Target Area Contract Preference Act (TACPA) (if applicable)

F) Sample Standard Agreement (STD 213)

1) STD 213 – Standard Agreement

2) Exhibit A – Scope of Work

3) Exhibit A-1 – Resumes of Key Personnel

4) Exhibit B – Budget Detail and Payment Provisions

5) Exhibit B-1 – Cost Proposal

6) Exhibit C – General Terms and Conditions (GTC 02/2025)

7) Exhibit D – Special Terms and Conditions

RFP No. CTCAC01-25

A) Purpose and Description of Services

1. Introduction

The federal Low-Income Housing Tax Credit (LIHTC) Program was authorized by Congress in 1986 to encourage the production of affordable rental housing. The program has been, since 1987, the largest production and incentive program for the new construction and rehabilitation of affordable rental housing.

The LIHTC program is contained in the federal tax code, and is administered at the federal level by the Internal Revenue Service (IRS). Internal Revenue Code (IRC) Section 42 specifies that each state legislature designate the housing credit agency to administer the state’s program. In California, the responsibility for administration of the program was assigned to the California Tax Credit Allocation Committee (CTCAC), by gubernatorial proclamation and enactment of SB 113, Chapter 658, Statutes of 1987.

In addition to the federal LIHTC program, the state legislature authorized a state low-income housing tax credit program to augment the federal tax credit. Authorized by Chapter 1138, Statutes of 1987, the state credit is only available to a project which has previously received, or is concurrently receiving, an allocation of federal credits. The state program does not stand alone, but instead, supplements the federal tax credit.

The State Treasurer chairs the Tax Credit Allocation Committee. Other voting Committee members are the State Controller, the State Director of Finance, the Director of the State Housing and Community Development Department, and the Executive Director of the California Housing Finance Agency. Advisory members are a representative of cities appointed by the speaker of the Assembly and a representative of counties appointed by the Senate Rules Committee.

CTCAC is responsible for administering both the federal and state tax credit programs. Staff receives and reviews applications for tax credits according to the requirements and criteria set forth in the Qualified Action Plan and program regulations. Reviews include a detailed feasibility and development cost analysis.

Based on staff recommendations, the Committee awards tax credits to eligible projects.

CTCAC has the responsibility to monitor all projects allocated credits for compliance with state and federal laws and regulations. Each project enters into a regulatory agreement, which embodies the compliance requirements, including additional use restrictions. CTCAC staff must determine that the rents and incomes of tax credit households do not exceed the maximum allowed by Section 42 and that the project does not violate the requirements set forth in 26 CFR 1.42-5. In addition to reviewing the rent and incomes files, CTCAC staff must physically inspect all tax credit projects. The requirements mandate the physical inspection of 20% of the tax credit units within each project, plus the projects’ common areas, building exteriors and grounds once every 3 years. In addition, for new projects, the buildings and units must be inspected by the end of the second calendar year following the year the last building in the project is placed in service.

In addition to performing Compliance monitoring services of the CTCAC portfolio, CTCAC is now required to perform asset management responsibilities for tax credit developments that received Tax Credit Assistance Program (TCAP) or Section 1602 (Exchange) funding as part of the American Recovery and Reinvestment Act of 2009 (ARRA), further information available at http://www.treasurer.ca.gov/ctcac/arra.asp. Specifically, the Department of Housing and Urban Development (HUD) issued TCAP Guidance on Fees and Asset Management Services for Tax Credit Developments that receive funding under ARRA. This guidance outlined TCAP administrative, project compliance, and asset management costs that may occur during the implementation of the TCAP Program.

CTCAC is required to perform asset management functions for the duration of the compliance period for all projects utilizing Exchange and TCAP funds.

Each year, as CTCAC allocates tax credits to projects, the compliance workload increases. Given the additional responsibilities, CTCAC has determined the compliance unit does not possess the technical expertise to perform asset management functions and responsibilities as required by ARRA. ARRA requires that CTCAC perform asset management functions for TCAP and Section 1602 funded projects “to http://www.treasurer.ca.gov/ctcac/arra.asp ensure compliance with Section 42 or the IRC of 1986, and the long-term viability of buildings funded” by TCAP. Additionally, the U.S. Treasury has identified similar asset management functions for Section 1602 funded developments.

2. Purpose

The purpose of this RFP is to solicit proposals to retain a firm to perform asset management services for TCAP and Section 1602 funded projects. The qualified firm will have extensive experience providing the required services specifically for investors in projects funded through the Low-Income Housing Tax Credit (LIHTC) Program. CTCAC anticipates the firm will be responsible for providing asset management services to a portfolio of approximately 49 tax credit projects in calendar year July 1, 2025 (or upon contract execution) through June 30, 2027.

3. Scope of Work

Contractor agrees to provide to California Tax Credit Allocation Committee (CTCAC) asset management services as described herein:

Asset management services to oversee a Portfolio of 49 Tax Credit Projects that received an award of Tax Credit Assistance Program (TCAP) or Section 1602 (Exchange) funds to assist in the development of affordable rental housing. The American Recovery and Reinvestment Act (ARRA) requires that TCAP grantees perform asset management functions for TCAP projects “to ensure compliance with Section 42 or the IRC of 1986, and the long-term viability of buildings funded by TCAP.

The services shall be performed at offices of the Contractor and at various tax credit property sites in California. Asset Management monitoring begins after a project has been placed-in-service.

The services shall be provided during business hours (8:00 a.m. – 5:00 p.m. PT, Monday through Friday, except holidays).

These services include the following:

• Review and assessment of project’s occupancy rates and vacancy turnover performance on a quarterly basis. Although, if high vacancy is noted, then TCAC may require reviews and assessments to be performed more often.

• Annual review and approval of project’s annual operating budget to determine if tax credit projects are financially feasible and generate positive cash flow. Annual operating budgets are received in December and review/approval is completed within 30 days of receipt.

• Annual review and approval of project’s annual audited financial statements consisting of Balance Sheet, Statement of Cash flows, and Income Statement to determine if tax credit projects are financially feasible and generate positive cash flow. Audited financial statements are received in June of each year and review/approval is completed within 30 days of receipt.

• Perform physical inspections on the 49 Tax Credit Projects the first year of the contract, July 1, 2025, thru June 30, 2026. Inspection of physical property will be conducted to determine compliance with National Standards for Physical Inspection of Real Estate (NSPIRE), which is established by the Department of Housing and Urban Development (HUD).

• Review and assess project owner’s compliance with TCAP or Section 1602 (Exchange) program and respond to findings issued by the state agency and/or other reports of non-compliance.

• Review and assess project owner’s compliance with applicable federal, state, or local laws related to property management such as property standards, and fair housing laws. Report all incidences of deferred maintenance noted during physical inspections, and fair housing violations that firm becomes aware of once annually to CTCAC.

• Develop Summary Asset Management Report, which consists of financial and non-financial factors (debt coverage ratio, cash flow, aged payables, aged receivables, vacancy rates, reserve account balances, UPCS violations, and deferred maintenance) for submission to CTCAC on semi-annual basis. This report will be due to CTCAC on June 30th and December 31st of each year.

• Develop a review process and asset management guidelines for use in evaluating the financial condition of tax credit projects. This task will be performed once at the beginning of the contract term (within 60 days of contract execution) to establish asset management guidelines and review process for determining financial feasibility of tax credit projects.

• Annually perform financial analysis of tax credit projects including operating cost analysis, reserve burn rate analysis, comparison of actual operating cost to budget, and prior year operations analysis.

• Annually prepare trend analyses reports to evaluate feasibility of tax credit projects during loan term and establish benchmarks to classify “troubled” projects. Task to be performed at least once annually for each tax credit project and due to CTCAC on December 31st of each year or an agreed upon date.

• Perform inspection of physical plant to evaluate capital repair and replacement evaluation (on an as needed basis), as determined by CTCAC. CTCAC anticipates firm will need to review Capital Needs Assessment (CNA) or Physical Needs Assessment (PNA) and replacement evaluation once every 5 years. However, if project(s) show high-deferred maintenance then a CNA/PNA review may be required prior to the 5-year interval.

• Annually review research of market conditions and vacancy rates to determine ongoing marketability and capital needs of tax credit developments. This task includes preparing a market analysis for the projects. For projects that experience high vacancy rates (x>15% for projects larger than 50 units) more periodic (quarterly or monthly) reviews may be needed until vacancy is resolved. This task will be performed in December of each calendar year.

• Prepare recommendation and implementation of workout strategies for troubled projects (on an as needed basis), as determined by CTCAC.

• Provide technical assistance to CTCAC program participants as determined by CTCAC.

• Meet with CTCAC compliance staff bi-monthly via telephone conference call to review work progress and asset management reports.

• Ensure compliance with requirements identified in CTCAC project regulatory agreement, CTCAC regulations for TCAP or Section 1602 programs, and CTCAC loan documents.

Deliverables

• On-Site Physical Inspections: The firm will conduct a physical site inspection during the first year of the contract, from July 1, 2025, thru June 30, 2026, to ensure compliance with NSPIRE. The site inspection will include a physical inspection of at least ten percent (10%) of the units, inspecting all vacant units, common areas, grounds, and all building exteriors in designated projects. In the event the firm is unable to conduct an on-site physical inspection due to an unforeseen event(s), natural disaster, pandemic, etc., the firm will instead conduct a virtual desk file audit and a virtual site inspection.

1. The firm will notify owners via written communication 15 days in advance of any site visit.

2. The firm will report projects in compliance to CTCAC within 30 days of performing inspections. The firm will report noncompliance issues to the project owner, and work with the owner to correct noncompliance within 30 days of performing inspections. The firm will establish a 30-day correction period for Owners to respond to report of noncompliance. The firm will review and report corrections or non-corrections of noncompliance findings to CTCAC within 30 days of receiving and reviewing owner’s response to noncompliance findings.

3. CTCAC will choose the projects to be inspected and provide that information to the firm. CTCAC reserves the right to require the firm to review more than 10% of the tax credit units or to conduct follow-up inspections, if CTCAC deems this necessary and appropriate based on the results of the physical inspection.

4. Physical Notification of Compliance/Noncompliance to CTCAC: Firm will provide preliminary reports of the results of the physical inspections to CTCAC within 60 days of the project visit, or an agreed upon timeframe, in a predetermined format, mutually acceptable to CTCAC and the firm.

• Annual Budgets/Audited Financial Statements: The firm will conduct an annual review and approval recommendations of project budgets and audited financial statements. CTCAC requests firm to identify specific timeframes for receipt of annual operating budgets and audited financial statements along with timelines for review and approval of annual operating budgets and audited financial statements. Upon completion of reviews, firm should provide project owners with written correspondence identifying any issues uncovered during the review of the annual operating budget or audited financial statements. The firm will be expected to complete budget and audit reviews within 30 days of receipt and provide CTCAC with copies of approval letters.

• Firm shall work with the CTCAC compliance staff to insure conformity in reporting procedures throughout the term of the contract.

• Firm shall use CTCAC prescribed procedures and forms. CTCAC and firm will work together to develop one set of universal reporting forms for entire portfolio.

• Firm shall meet with CTCAC compliance staff, as determined by CTCAC, to review work progress and inspection results.

4. Term of Agreement

The term of this agreement will be from July 1, 2025 (or upon approval by the Department of General Services, whichever is later) through June 30, 2027 for a dollar value not to exceed $735,500.00 for two years ($367,500.00 per year) with an option to extend the contract for one additional year for a dollar amount not to exceed $367,500.00. The agreement will require approval by the Department of General Services (DGS). In no event shall services be performed prior to approval by DGS.

B) Minimum Qualifications for Proposers

The Proposer shall address the minimum qualifications stated below by completing Attachment 3 in Section E of the RFP. Failure to meet these minimum qualifications will cause your proposal to be considered non-responsive and the proposal will be rejected.

1. At least ten (10) years of experience in performing professional asset management services for affordable housing developments.

2. At least ten (10) years of experience conducting physical inspections of multifamily buildings in accordance with HUD NSPIRE.

3. Demonstrates an understanding and knowledge of the Federal Low-Income Housing Tax Credit program (IRC Section 42).

4. The firm must be available to immediately assume services. The firm selected must be technically and professionally capable of providing the services. The firm must be free from actual conflicts of interest not only at the time of selection, but also throughout the term of the contract.

C) Proposal Requirements and Information

1. Key Action Dates

All Proposers are hereby advised of the following schedule and will be expected to adhere to the required dates and times (all times listed are Pacific Time (PT)).

Date Action April 15, 2025 RFP available to Prospective Proposers April 28, 2025, 12:00 p.m. PT Deadline for Submission of Written Questions April 30, 2025 Distribution of Answers to Written Questions May 9, 2025 at 4:00 p.m. PT Deadline for Submission of Proposals May 12 – May 13, 2025 Evaluation of Proposals May 14, 2025 Notice of Intent to Award Released July 1, 2025 Anticipated Commencement of Contract

CTCAC reserves the right to change the above dates and times, and, if so, CTCAC may modify this RFP prior to the date fixed for submission of proposals by the issuance of an addendum. CTCAC will also provide post updates online at https://www.treasurer.ca.gov/ctcac and https://caleprocure.ca.gov/.

CTCAC also reserves the right not to award an agreement at all.

2. Questions and Answers

In the opinion of CTCAC, this RFP is complete and needs no further explanation. However, if you have questions, or should you need any clarifying information, contact Phyllis Blanton at phyllis.blanton@treasurer.ca.gov no later than 12:00 p.m. PT on April 28, 2025.

A copy of the responses to all written questions received by 12:00 p.m. PT on April 28, 2025 will be provided to Proposers via e-mail, and posted online at www.treasurer.ca.gov/ctcac and https://caleprocure.ca.gov/ by close of business on April 30, 2025.

3. Content and Format of Proposals

Proposals will be evaluated on the basis of the proposer’s ability to demonstrate a high degree of experience, training and proficiency in the conduct of the various functions performed. The CTCAC will consider specifically the proposer’s understanding, knowledge and experience in the following areas:

a) Demonstrated knowledge and experience in the Low-Income Housing Tax Credit Program.

b) Demonstrated experience in providing professional asset management services for affordable housing developments. All of the services listed in the Scope of Work must be addressed in your response for your proposal to be considered.

c) Demonstrated knowledge of HUD UPCS standards.

d) Specific demonstrated experience in inspecting and reporting on physical condition of multifamily projects.

e) Demonstrated knowledge of local health, safety and building codes pertinent to multifamily https://www.treasurer.ca.gov/ctcac https://caleprocure.ca.gov/ mailto:mayra.lozano@treasurer.ca.gov https://caleprocure.ca.gov/ housing.

f) Ability to report findings in a concise and accurate manner.

Proposals must be organized in the format shown below and contain all of the information listed.

a) Qualifications and Experience of the Firm:

i. A brief description of the firm’s qualifications and experience that demonstrates its capability as an asset management firm including (a) annual reviews and approval recommendations for project budgets, (b) annual reviews and analyses of audited financial statements for the project, and (c) property inspection experience.

ii. A listing of other state or local agencies for which the firm has acted, or is currently acting, as building inspectors, the length of time for each, the nature of services provided, and a contact person with address and phone number.

iii. A reference list of similar types of contracts successfully completed with a sample of the work. The list of contracts shall include:

1. The name of the client.

2. The contact person

3. The address and telephone number

4. A detailed description of the services performed and dates you were involved with project.

5. Brief description of the development, including occupancy, location, number of units and tenancy.

6. Brief description of services rendered. Be specific as to your firm’s role (planning, training, etc.) in each.

iv. A listing of clients with whom the firm is currently working, the nature of the work, and the length of time associated with each client.

b) Qualifications and Experience of Personnel:

i. An organization chart showing functions, positions and titles of professionals in the organization, including any subcontractor firms. Describe the minimum LIHTC training criteria for staff and provide certificates for seminars attended and overall experience level of the organization.

ii. A listing of the names of the personnel that will be directly involved in providing the services under this contract, including any subcontractor employees. The listing should identify the personnel with primary contract responsibility. This includes the resumes of senior management staff, to verify that there is sufficient experience in multi-family (LIHTC and Public Housing) real estate management to assure proper reporting and monitoring of the fiscal and physical health of the developments.

iii. Detailed resumes for personnel that will be directly involved in providing the services under this contract, including any proposed subcontractors and their employees.

c) Facilities and Resources

The services shall be performed at the offices of the contractor. Explain where the services will be provided and what type of equipment is needed to perform the services.

d) Fee Schedule

The fee schedule must be stated on a per project basis and must include all expenses, including report filing. The per project cost will be based upon providing asset management services identified in this request for proposal for each development which includes conducting physical site inspections from July 1, 2025 to June 30, 2026, which includes physical inspection of at least ten percent (10%) of the units, inspecting all vacant units plus common areas, grounds, and all building exteriors in designated projects. The fee schedule will be the basis for the fees portion of the evaluation and selection process.

Proposals submitted with fee schedules not in compliance with these requirements will be rejected.

Proposals submitted should include all costs related to performing asset management functions as identified in this request for proposal. CTCAC will issue progress payments based on tasks completed under the contact.

Below is a schedule which identifies the percentage of payment (times per project fee) that will be made to contractor after each task is completed during the calendar year. The contractor will need to submit an invoice quarterly to CTCAC after a task has been completed seeking payment in arrears.

Task Percentage payable Task

Task 1: annual audit review 20% of per project fee

Task 2: annual operating budget review 15% of per project fee

*Task 3: review and analysis of operations 30% of per project fee which includes one physical property inspection

*Note: In the event an on-site physical inspection cannot be conducted, and a virtual desk audit & virtual site inspection has to be performed, Task 3 fee schedule will be as follows;

Task 3a) Review and Analysis of Operations 20% of per project fee Task 3b) Virtual Desk Audit 5% of per project fee Task 3c) Virtual On-site inspection 5% of per project fee

Task 4: semi-annual project status report 20% of per project fee

Task 5: administrative: document and 15% of per project fee report requests and review

e) Work Plan and Work Schedule Requirements

The proposer shall develop a work plan or schedule for task completion. Identify tasks and specific milestones by which progress can be measured and payments made.

Please address the following tasks in your work plan and work schedule.

Fiscal and operations reviews:

i. Annual reviews and approval recommendations for project budgets;

ii. Annual reviews and analysis of audited financial statements for each project;

iii. Physical Inspections;

iv. Describe how you will address external reporting on single-asset entities to CTCAC. What kinds of software and processes do you currently use? Describe examples in your existing portfolio of successful relationships in this regard;

v. How you would ensure professional project inspections are conducted as required by the Asset Management Agreement? How you would ensure professional project inspections are conducted for a virtual desk audit and virtual site inspection if CTCAC agrees that firm is unable to conduct on-site physical inspections?

vi. Describe how you would address reporting. Be specific in the periodic reports and types of recommendations you would prepare. Also include how events of material noncompliance would be documented and reported. Include:

a. Portfolio/ project summary

4. Submission of Proposals

a. Proposals must be received no later than 4:00 p.m. PT on May 9, 2025. Late proposals will not be accepted. A minimum of one (1) unbound original and four (4) copies of the proposal shall be submitted to the following location:

901 P Street, Suite 213A

The proposal envelopes must be plainly marked with the RFP number and title, your firm name and address, and must be marked with "DO NOT OPEN", as shown in the following example:

If the proposal is made under a fictitious name or business title, the actual legal name of proposer must be provided.

Proposals not submitted under sealed cover and marked as indicated may be rejected.

b. Questions relating to this RFP should be in writing directed to the person listed below. All responses will be in writing and made available to the general public.

Phyllis Blanton Compliance Program Manager

California Tax Credit Allocation Committee 901 P Street, Suite 213A

Email: phyllis.blanton@treasurer.ca.gov

c. Proposals should provide straightforward and concise descriptions of the proposer’s ability to satisfy the requirements of this RFP. The proposal must be complete and accurate. Omissions, inaccuracies or misstatements may be cause for rejection of a proposal.

d. The proposal package should be prepared in the least expensive method.

e. All proposals must be submitted under sealed cover and sent to CTCAC by dates and times shown in Section C, Proposal Requirements and Information, Item 1) Key Action Dates (page 4). Proposals received after this date and time will not be considered.

f. The original proposal must be marked "ORIGINAL COPY". All documents contained in the original proposal package must have original signatures and must be signed by a person who is authorized to bind the proposing firm. All additional proposal sets may contain photocopies of the original package.

g. All proposals shall include the documents identified in Section E, Required Attachment Checklist (see page 10). Proposals not including the proper “required attachments" shall be deemed non-responsive. A non-responsive proposal is one that does not meet the basic proposal requirements.

h. Proposals must be submitted for the performance of all the services described herein. Any deviation from the work specifications will not be considered and will cause a proposal to be rejected.

California Tax Credit Allocation Committee 901 P Street, Suite 213A Sacramento, CA 95814 RFP No. CTCAC01-25

Asset Management Services

DO NOT OPEN

mailto:asingh@treasurer.ca.gov

i. A proposal may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. The State may reject any or all proposals and may waive an immaterial deviation in a proposal. The State's waiver of an immaterial deviation shall in no way modify the RFP document or excuse the proposer from full compliance with all requirements if awarded the agreement.

j. Costs incurred for developing proposals and in anticipation of award of the agreement are entirely the responsibility of the proposer and shall not be charged to the State of California.

k. An individual who is authorized to bind the proposing firm contractually shall sign the Attachment 2, Proposal/Proposer Certification Sheet. The signature must indicate the title or position that the individual holds in the firm. An unsigned proposal may be rejected.

l. A proposer may modify a proposal after its submission by withdrawing its original proposal and resubmitting a new proposal prior to the proposal submission deadline as set forth in the Key Action Dates (Section C.1). Proposal modifications offered in any other manner, oral or written, will not be considered.

m. A proposer may withdraw its proposal by submitting a written withdrawal request to the State, signed by the proposer or an authorized agent. A proposer may thereafter submit a new proposal prior to the proposal submission deadline. Proposals may not be withdrawn without cause subsequent to proposal submission deadline.

n. The awarding agency may modify the RFP prior to the date fixed for submission of proposals by the issuance of an addendum to all parties who received a proposal package.

o. The awarding agency reserves the right to reject all proposals. The agency is not required to award an agreement.

p. Before submitting a response to this solicitation, proposers should review, correct all errors and confirm compliance with the RFP requirements.

q. Where applicable, proposer should carefully examine work sites and specifications. No additions or increases to the agreement amount will be made due to a lack of careful examination of work sites and specifications.

r. More than one proposal from an individual, firm, partnership, corporation or association under the same or different names, will not be considered.

s. CTCAC will enter into contract with selected contractor and CTCAC reserves the right to make multiple awards with multiple firms.

t. The State does not accept alternate contract language from a prospective contractor. A proposal with such language will be considered a counter proposal and will be rejected. The State’s General Terms and Conditions (GTC 02/2025) are not negotiable.

u. No oral understanding or agreement shall be binding on either party.

v. CTCAC will require the contractor to identify any conflicts of interest, and we reserve the right to exclude such projects from the final contract.

5. Evaluation Process

An evaluation team will rate proposals on the basis of the following weighted factors. The CTCAC staff will review all eligible proposals (i.e., those that are received in the time and manner prescribed) to determine which ones meet the minimum qualifications specified in the RFP. Those proposals that meet the requirements shall be submitted to a CTCAC evaluation committee that will evaluate and score the proposals using the criteria specified below. As part of its final evaluation process, the evaluation committee may request oral presentations (either in person or by telephone). If this option is exercised, the CTCAC will provide firms with at least 48 hours’ notice. Presenters from the firms must include the personnel who will have primary responsibility for the contract.

Criteria Maximum Points

a. Years and breadth of experience with single or multiple agencies performing asset management functions for a portfolio of affordable housing developments. CTCAC will award on a sliding scale 1 point for each year of firm experience performing asset management functions. A maximum of 30 points for 30 years of experience providing asset management services.

b. Ability and capability of the firm to conduct physical inspections of projects to determine compliance with HUD NSPIRE protocols and state and local building codes. CTCAC will award on a sliding scale 1 point for each year of firms’ experience in conducting physical inspections. A maximum of 30 points for 30 years of experience.

c. Qualifications of Personnel (including experience and qualifications of specific personnel who will provide the services, their professional and educational background). CTCAC will award on a sliding scale 1 point for each year of average staff experience in performing asset management functions. A maximum of 10 points for 10 years of average staff experience.

d. Cost including actual fees proposed. 30

TOTAL MAXIMUM POSSIBLE POINTS 100

The lowest cost proposal, based on total cost from Attachment 6, is awarded the maximum cost points.

Other proposals are awarded cost points based on the following calculation:

(Lowest cost proposal / Other cost proposal) = (factor)

Cost points for Other cost proposal = (factor) X maximum cost points

EXAMPLE: A maximum of 30 points is available.

Lowest cost proposal = $275,000 Other cost proposal = $367,500

(Lowest cost proposal / Other cost proposal) = $275,000/ $367,500 = ¾

Cost points awarded to Other cost proposal = ¾ x 30 maximum points = 22.5 cost points

Tie Breaker

In the event two (2) or more responsive and responsible proposers earn the highest score, the contract will be awarded to the responsive and responsible firm earning the higher score for experience in performing asset management functions. If the total scores are the same, the contract will be awarded to the responsive and responsible proposer earning the higher score for conducting physical inspections for affordable housing developments. If the scores are the same, the contract will be awarded to the responsive and responsible proposer earning the higher score for Cost.

6. Award and Protest

Notice of the proposed award shall be posted in a public place in the office of CTCAC, 901 P Street, Sacramento, CA 95814 and on the following Internet site: www.treasurer.ca.gov/ctcac for five (5) working days prior to awarding the contract.

a. If any proposer, prior to the award of contract, files a protest with the CTCAC and the Department of General Services, Office of Legal Services, 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, CA 95605 or at the email OLSProtests@dgs.ca.gov, on the grounds that the (protesting) proposer would have been awarded the contract had the agency correctly applied the evaluation standard in the RFP, or if the agency followed the evaluation and scoring methods in the RFP, the agreement shall not be awarded until either the protest has been withdrawn or the Department of General Services has decided the matter. If submitting the initial written statement of protest via mail, it is suggested that the firm do so via certified or registered mail.

b. Within five (5) days after filing the initial protest, the protesting proposer shall file with the

Department of General Services, Office of Legal Services and the CTCAC a detailed statement specifying the grounds for the protest.

7. Disposition of Proposals

Upon proposal opening, all documents submitted in response to this RFP will become the property of the State of California and will be regarded as public records under the California Public Records Act (Government Code Section 6250 et seq.) and subject to review by the public.

8. Agreement Execution and Performance

a. Performance shall start not later than 45 days, or on the express date set by the awarding agency and the Contractor, after all approvals have been obtained and the agreement is fully executed.

Should the Contractor fail to commence work at the agreed upon time, the awarding agency, upon five (5) days written notice to the Contractor, reserves the right to terminate the agreement. In addition, the Contractor shall be liable to the State for the difference between Contractor's Proposal price and the actual cost of performing work by another contractor.

b. All performance under the agreement shall be completed on or before the termination date of the agreement.

D. Preference and Incentive Programs

1. Small Business or Microbusiness Preference https://www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro-Accordion-List/Office-of-Small- Business-and-Disabled-Veteran-Business-Enterprise/Certification-Program

A five percent (5%) preference will be applied to certified small business firms submitting proposals. To obtain the preference, firms must be certified as a small business at the time the bid is submitted. The firm MUST include an updated copy of their Small Business Certification to obtain the preference.

The 5%preference is issued only for computation purposes to arrive at the successful firm(s),and does not alter the amount of the actual proposals. Once each proposal has been scored, if the highest responsible firm is not a certified small business or microbusiness, 5% of the highest scoring bid is added to the total “earned” points for each bid submitted by a certified small business. These final numbers, with the 5% included, are then used to determine the highest scoring bid.

Questions regarding the small business certification or preference approval should be directed to the Office of Small Business & DVBE Services (OSDS) at (916) 375-4940 or can be found at the website listed above.

2. Non-Small Business or Microbusiness Preference

A five percent (5%) bid preference is available to a non-small business claiming twenty-five percent mailto:OLSProtests@dgs.ca.gov file:///C:%5CUsers%5CPBlanton%5CAppData%5CLocal%5CMicrosoft%5CWindows%5CINetCache%5CContent.Outlook%5CK151X9JA%5CSmall%20Business%20or%20Microbusiness%20Preference%20-%20https:%5Cwww.dgs.ca.gov%5CPD%5CAbout%5CPage-Content%5CPD-%20Branch-Intro-Accordion-List%5COffice-of-Small-Business-and-Disabled-Veteran-Business-Enterprise%5C%20Certification-Program https://www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro-Accordion-List/Office-of-Small-Business-and-Disabled-Veteran-Business-Enterprise/Certification-Program https://www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro-Accordion-List/Office-of-Small-Business-and-Disabled-Veteran-Business-Enterprise/Certification-Program file:///C:%5CUsers%5CPBlanton%5CAppData%5CLocal%5CMicrosoft%5CWindows%5CINetCache%5CContent.Outlook%5CK151X9JA%5CSmall%20Business%20or%20Microbusiness%20Preference%20-%20https:%5Cwww.dgs.ca.gov%5CPD%5CAbout%5CPage-Content%5CPD-%20Branch-Intro-Accordion-List%5COffice-of-Small-Business-and-Disabled-Veteran-Business-Enterprise%5C%20Certification-Program

(25%) California certified small business subcontractor participation. If claiming the non-small business subcontractor preference, the bid response must include a list of the small business (es) with which the firm commits to subcontract in an amount of at least 25% of the net bid price with one or more California certified small businesses. Each listed certified small business must perform a “commercially useful function” in the performance of the contract as defined in Government Code Section 14837(d)(4).

The required list of California small business subcontractors must be attached to the bid response and must include the following: 1) subcontractor name, 2) address, 3) phone number, 4) a description of the work to be performed and/or products supplied; and 5) the dollar amount or percentage of the net bid price (as specified in the solicitation) per subcontractor.

Firms claiming the 5% preference must commit to subcontract at least 25% of the net bid price with one or more California certified small businesses. Completed certification application required support documents must be submitted to the OSDS no later than 5:00 p.m. on the bid due date, and the OSDS must be able to approve the application as submitted. Questions regarding certification should be directed to the OSDS at (916) 375-4940.

The preference to a non-small business firm that commits to small business or microbusiness subcontractor participation of 25% of its non proposal price shall be 5% of either the lowest, responsive, responsible firm’s price or the highest response, responsible firm’s total score. A non-small business, which qualifies for this preference, may not take an award away from a certified small business.

3. Disabled Veteran Business Enterprise (DVBE) Participation https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-EnterpriseCertification-Program

This solicitation DOES NOT include a minimum DVBE participation requirement. DVBE participation is not required in the bid or proposal. However, a DVBE incentive will be applied as provided in Attachment 5.

DVBE INCENTIVE: The State will apply a DVBE incentive for responsive proposals or proposals from responsible proposers that propose DVBE participation. The DVBE incentive will vary in relation to the percentage of confirmed DVBE participation (up to five percent (5%)).

Any contract awarded to a company committing to subcontract with a certified DVBE will follow requirements as provided in MVC 999.7 including compliance with the Std. 817 reporting process, and permanent withholds and deductions for non-compliance.

4. Target Area Contract Preference Act (TACPA)

This RFP provides for an optional TACPA preference. The TACPA program was established to stimulate business investments in distressed areas of the State and create job opportunities for Californians.

Proposing companies are not required to apply for this preference. Both the TACPA workplace and workforce preferences will be evaluated for this solicitation.

Workplace preference - TACPA provides a 5 percent (5%) preference for a California business that is located in a qualified zone.

Workforce preference - TACPA provides a 1 to 4 percent (1-4%) preference for a California business that employs persons with a high risk of unemployment (Government Code Section 4532).

1% for 5-9% of workforce 2% for 10-14% of workforce 3% for 15-19% of workforce 4% for 20% or more of workforce

Proposing companies wishing to take advantage of the TACPA preference will need to review the following website and submit the appropriate documents with the proposal response:

https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-EnterpriseCertification-Program https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-EnterpriseCertification-Program https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Request-a-Target-Area-Contract-Preference

Folder/Request-a-Target-Area-Contract-Preference.

TACPA Preference Request (STD 830) Bidder’s Summary of Contract Activities and Labor Hours (TACPA Form 526)

CTCAC will send the applicable TACPA request documents to the Department of General Services, Procurement Division, Dispute Resolution Unit. TACPA preference requests are typically reviewed and processed by DGS within five (5) business days. If an award of this agreement is made based on the TACPA preference, DGS will monitor compliance directly with the Contractor throughout the life of the contract.

E) Required Attachments

For this proposal to be considered responsive, all required attachments listed in Attachment 1 must be included with the RFP by dates and times shown in Section C, Proposal Requirements and Information and Key Action Dates (Refer to Attachment 1, Required Attachment Checklist).

https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Request-a-Target-Area-Contract-Preference https://www.documents.dgs.ca.gov/dgs/fmc/pdf/std830.pdf https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/gspd0526.pdf

ATTACHMENT 1

REQUIRED ATTACHMENT CHECKLIST

A complete proposal or proposal package will consist of the items identified below. Complete this checklist to confirm the items in your proposal. Place a check mark or “X” next to each item that you are submitting to the State. For your proposal to be responsive, all required attachments must be returned.

This checklist should be returned with your proposal package also.

Attachment # Attachment Name/Description

Attachment 1 – Required Attachment Checklist

Attachment 2 – Proposal/Proposer Certification Sheet

Attachment 3 – Minimum Qualifications Certification

Attachment 4 – Resumes of Key Personnel & Experience

Attachment 5 – Proposer References

Attachment 6 – Cost Proposal Work Sheet

Attachment 7 – Payee Data Record (STD 204)

Attachment 8 – Contractor Certification Clauses (CCC 04/2017)

Attachment 9 – Darfur Contracting Act Certification

Attachment 10 – California Civil Rights Laws Certification

Attachment 11 – Bidder Declaration (GSPD-05-105)

Attachment 12 – Generative Artificial Intelligence (GenAI) Notification

Attachment 13 – Small Business or Microbusiness Preference (if applicable)

Attachment 14 – Non-Small Business or Microbusiness Preference (if applicable)

Attachment 15 – Disabled Veteran Business Enterprise (DVBE) Program Participation Instructions (if applicable)

Attachment 16 – Target Area Contract Preference Act (TACPA) (if applicable)

ATTACHMENT 2

PROPOSAL/PROPOSER CERTIFICATION SHEET

This Proposal/Proposer Certification Sheet must be signed and returned along with all the "required attachments" as an entire package with original signatures. The proposal must be transmitted in a sealed envelope in accordance with RFP instructions.

Do not return the RFP nor the "Sample Agreement" at the end of this RFP.

A. Place all required attachments behind this certification sheet.

B. The signature affixed hereon and dated certifies compliance with all the requirements of this proposal document. The signature below authorizes the verification of this certification.

C. The signature below certifies to the best of your knowledge that the information provided on this document is true and complete.

An Unsigned Proposal/Proposer Certification Sheet May Be Cause for Rejection

1. Company Name 2. Telephone Number 2a. Fax Number

3. Address

Indicate your organization type:

4. Sole Proprietorship 5. Partnership 6. Corporation Indicate the applicable employee and/or corporation number:

7. Federal Employee ID No. (FEIN) 8. California Corporation No.

9. Indicate applicable license and/or certification information:

10. Proposer’s Name (Print) 11. Title

12. Signature 13. Date

14. Are you certified with the Department of General Services, Office of Small Business and Disabled Veteran Business Enterprise Services (OSDS) as:

a. California Small Business Yes No If yes, enter certification number:

b. Disabled Veteran Business Enterprise Yes No If yes, enter your service code below:

NOTE: A copy of…