Financial_Underwriting_of_Affordable_Housing_Development_Funding_Applications.pdf

County of San Mateo

Request for Proposals (RFP) for Financial Underwriting of

Affordable Housing Development Funding Applications

Department of Housing

RFP No. 2024-RFP-00112

RFP Contact: Douglas Frederick dwfrederick@smcgov.org

1. Introduction and Schedule

The County of San Mateo (the “County” or “SMC”) covers most of the San Francisco Peninsula. The region covers 744 mi and is home to nearly 800,000 residents and 20 incorporated cities. The County provides for the health and welfare of all people within its borders and serves as the local government for the unincorporated areas. Innovation thrives here in industries including bioscience, computer software, green technology, hospitality, financial management, health care, education and transportation. The

County prides itself on how that prosperity fosters its commitment to protecting and enhancing the health, safety, welfare and natural resources of the community.

1.1. Summary

The San Mateo County Department of Housing (DOH) is looking for qualified consultants to provide financial analyses of proposed affordable housing development projects in support of loan programs funded with local, state, and federal housing funds. Notices of Funding Availability (NOFAs) are released twice a year, each requiring analysis of applications received. These efforts are to supplement staff review of the project and bring more expertise into the review process.

1.2. Background

The San Mateo County Department of Housing (DOH) offers low interest loans to affordable housing developers through two Notices of Funding Availability (NOFAs) each year. Federal funding programs

(the Community Development Block Grant and HOME Investment Partnership) provide approximately

$4 million per year to assist with affordable housing development or retention of existing affordable housing through rehabilitation activities. A total of eight applications for housing rehabilitation or new construction were received in the federal NOFA. A second NOFA (the Affordable Housing Fund [AHF]) offers loans funded through a variety of sources, including local tax revenues (Measure K), housing authority Moving to Work reserves, and State programs to which the Department has applied for funding.

The most recent AHF NOFA (AHF 12.0) offered $38 million and a total of 15 applications for new construction were received. While DOH staff review and rank the applications received, the Department relies on outside consultants to review the applications and advise as to the viability of those applications.

The purpose of this RFP is to solicit interest and cost estimates for those services.

1.3. Contact Information

Douglas Frederick Housing Program Manager Email: dwfrederick@smcgov.org Phone: (650) 561-5069

Department:

Department of Housing

Department Head:

Raymond Hodges Director of Housing mailto:dwfrederick@smcgov.org tel:(650)561-5069

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1.4. Timeline

RFP Released May 9, 2024

Pre-Proposal Meeting (Non-Mandatory) May 16, 2024, 9:00amhttps://smcgov.zoom.us/j/94938491875?pw d=dHNYNzE5U1prbDgxNVZ5TFkyL0tWZz09

Deadline for Questions, Comments and

Contract Exceptions

May 17, 2024, 4:00pm

Proposal Due Date and Time May 23, 2024, 4:00pm

Interviews (tentative) May 30, 2024

Anticipated Contract Award Date June 10, 2024

2. Scope of Work

2.1. Financial Underwriting of Affordable Housing Development Funding Applications

Assist the San Mateo County Department of Housing ("Department") with its process of reviewing and evaluating County

Affordable Housing Fund ("AHF") and CDBG/HOME NOFA funding applications.

Consultant tasks will include:

o Evaluation of the Department's NOFA process and suggestions for improvement, with particular focus on application review, use of funding, alignment with changing state funding priorities, and underwriting guidelines o Performing a due diligence underwriting review of approximately 10-15 Affordable Housing Fund ("AHF") NOFA funding applications for new construction affordable rental housing projects and re syndication/rehabilitation projects during the application review period between during the summer of 2025, providing expertise on financial feasibility analysis to staff review teams.

o Performing a due diligence underwriting review of approximately 5 - 7 FY 2025-26 CDBG/HOME NOFA applications for affordable housing new construction and/or acquisition/rehab projects, during the application review period that will occur between February - May 2025.

o As part of these underwriting reviews, providing the Department with draft due diligence underwriting reports and being available (by phone) to discuss these reviews with the Department prior to providing a final written review for each applicant's project proposal.

In advance of the consultant's underwriting efforts, the Department will provide the consultant with:

• a proposed schedule for the two NOFAs,

• a sample format for a due diligence report, to serve as a general guide,

• electronic copies of the NOFA guidelines, and https://smcgov.zoom.us/j/94938491875?pwd=dHNYNzE5U1prbDgxNVZ5TFkyL0tWZz09 https://smcgov.zoom.us/j/94938491875?pwd=dHNYNzE5U1prbDgxNVZ5TFkyL0tWZz09

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• and all materials submitted by the NOFA applicants in conjunction with their NOFA application.

The Department will also assist the consultant to obtain any additional information from an applicant that may be helpful to assessing the particular project.

3. Submission Requirements

3.1. Submission Deadline

Proposals must be electronically received by 4:00 pm, on Thursday, May 23, 2024 via eProcurement system.

Allow sufficient time for the upload to complete by the Due Date and Time. Partial uploads will automatically terminate, and proposals will be rejected. The eProcurement system submission time will be the official submission time. The County will not be responsible for and may not accept proposals that are late due to slow internet connections or for any other failure of the eProcurement system.

NOTE: The County does not maintain the eProcurement system and is not liable for site failures or technical problems. To resolve technical issues, contact OpenGov Technical Support by using the real time chat located in the lower right hand corner of the screen, or via email at procurement-support@opengov.com https://procurement.opengov.com/portal/smcgov

3.2. Pre-submission Registration

Organizations or individuals interested in responding to this solicitation must register online with the

County of San Mateo at:

• https://procurement.opengov.com/portal/smcgov

It is recommended that organizations complete this registration as soon as possible. The County will not be responsible for and may not accept proposals that are late due to a failure to register in the eProcurement system.

3.3. Submission via eProcurement Portal

Required Documents

Please refer to the Technical Proposal section for submittal documents and requirements.

Electronic Submissions

Include the proposer name and the RFP title and number in each filename. Submit proposals via the eProcurement website, allowing sufficient time for the upload to complete by the Due Date and Time. As noted above, the eProcurement portal submission time will be the official submission time, and partial uploads will automatically terminate, and proposals will be rejected. Contact eProcurement Portal with technical questions regarding this site.

Conflicts between Certain Requirements

Prior to the submission deadlines and solely relating to a determination of the timeliness of questions, comments, and proposal submissions, information displayed on the eProcurement portal site will take mailto:procurement-support@opengov.com mailto:procurement-support@opengov.com https://procurement.opengov.com/portal/smcgov https://procurement.opengov.com/portal/smcgov https://procurement.opengov.com/portal/smcgov/projects/87394/document?section=565975

Page 5 of 12 Release date of May 9, 2024 precedence in the event of a discrepancy between that information and the information within the solicitation documents. For all other discrepancies, the information in the solicitation documents will take precedence.

Format

Documents should be created in the following format:

• Text should be Times New Roman (12-point minimum font size) and unjustified (i.e., with a ragged-right margin)

• Pages should have margins of at least one inch on all sides (excluding headers and footers)

• If the proposal is lengthy, a Table of Contents should be included.

• PDF format is preferred.

Errors in Proposals

The County will not be liable for any errors in proposals. Proposals may be rejected as unresponsive if they are late, incomplete, missing pages or information, or cannot be opened for any reason. The County may waive minor irregularities, but such waiver will not modify any remaining RFP requirements.

4. Minimum Qualifications and Technical Proposal

4.1. Minimum Qualifications

Proposer should be able to quantify their experience providing similar services either to government entities involved in affordable housing finance, affordable housing developers, or financial institutions.

4.1.1. Has Proposer has been providing similar services for a minimum of four (4) years within the last seven (7) years?*

☐ Yes

☐ No

*Response required

4.1.2. Account manager has a minimum of two (2) years of experience within the last five (5) years in providing account services?*

☐ Yes

☐ No

*Response required

4.1.3. What is the registered Business Name and Unique Entity ID (UEI) No.?*

Unique Entity ID (UEI) numbers can be found on sam.gov

*Response required

4.2. Technical Proposal

Please provide a description of the proposed approach to underwriting of affordable housing development projects and how the proposer will interact with Department staff.

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4.2.1. Introduction and Executive Summary *

Submit a letter of introduction and executive summary of the proposal. The letter must contain:

• Name, title and contact information (email, phone, and address) for representative of proposer that is responsible for communication related to this RFP.

• Name, title, contact information, and signature of person authorized to obligate firm to perform the commitment contained in the proposal.

Submission of the letter will constitute a representation by proposer that it is willing and able to perform the commitments contained in the proposal and has not violated the terms of this RFP.

*Response required

4.2.2. Statement of Minimum Qualifications *

Describe how the proposer meets the minimum qualifications as set forth in Minimum Qualifications of this RFP.

Submission of the Minimum Qualifications checklist is not a substitute for providing a detailed written response.

*Response required

4.2.3. Project Approach*

This section should correlate to the Scope of Work . Proposer should give a short summary describing how it will perform the relevant work

*Response required

4.2.4. Proposed schedule *

Attach proposed schedule reference ability to complete the project within the County's required time frame

*Response required

4.2.5. Firm Qualifications *

Attach information regarding background and qualifications, including the following:

• A brief description of the proposer.

• A description of not more than three (3) projects similar in size and scope conducted by the proposer, including the client, reference and telephone numbers, primary staff members involved, budget, schedule, and project summary. Descriptions should be limited to one (1) page for each project.

• If subcontractors are anticipated, identify them (if known) and provide information on how they will be used.

*Response required

4.2.6. Team Qualifications*

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Provide a chart identifying:

▪ Project team and reporting structure

▪ Lead project manager

▪ Role each person will play in the project

Provide a brief description of the experience and qualifications of the project team members, including short resumes if desired.

Written assurance that the key individuals listed and identified will be performing the work and will not be substituted or reassigned without the County’s prior approval

*Response required

4.2.7. References*

Provide 3 references for each of the following, including the name, address, and telephone number of recent clients (preferably other public agencies):

*Response required

4.2.8. Fee Proposal*

The Fee Proposal should be submitted as a separate PDF file from the Technical Proposals detailed in

Required Documents.

The County reserves the right to accept other than the lowest priced offer and to reject any proposals that are not responsive to this request.

*Response required

5. Evaluation and Selection Criteria

The proposals will be evaluated by a selection committee with relevant expertise. The County intends to evaluate the proposals generally in accordance with the criteria itemized below. Proposers with the highest scoring proposals may be interviewed by the committee to make the final selection.

No. Evaluation Criteria Scoring Method Weight (Points)

1. Project Approach Points Based 10 (9.5% of Total)

2. Firm Qualifications Points Based 25 (23.8% of Total)

3. Team Qualifications Points Based 20 (19% of Total)

4. Interview Points Based 20 (19% of Total)

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5. Price Reward Low Cost 25 (23.8% of Total)

6. Local Business Preference Pass / Fail 5 (4.8% of Total)

6. Instructions to Proposers

6.1. Instructions

Proposers are encouraged to attend a pre-proposal conference on Thursday, May 16, 2024, at 9:00 am, to be held at https://smcgov.zoom.us/j/94938491875?pwd=dHNYNzE5U1prbDgxNVZ5TFkyL0tWZz09. All questions will be addressed at this conference and any available new information will be provided at that time. If you have further questions regarding the RFP, please post them on the eProcurement portal.

6.2. Communications

A. As of the issuance date of this RFP and continuing until it is canceled or an award is made, no proposer or person acting on behalf of a prospective proposer may discuss any matter relating to the RFP with any officer, agent, or employee of the County, other than through eProcurement portal, to the Authorized Contact Person, or as outlined in the evaluation or protest procedures.

B. Proposers (including any agent, owner, employee, board members, or other such affiliates) shall not offer any gift, favor, or other personal benefit to any County officer or employee during the procurement process for this agreement, including during the solicitation period and contract negotiations.

Violation of the foregoing prohibitions may result in a proposer being found non-responsible and barred from participating in this or future procurements.

6.3. Contract Award

A. Award Procedure

Contract negotiations are neither an offer nor guarantee that a contract will be executed. A contract award, if any is made, will be to the responsive, responsible proposer offering the overall best value to the County for the services and goods described in this solicitation, or as applicable, for a specific portion of the services and goods described. Any agreement reached will be memorialized in a formal agreement using the attached template, executed by the appropriate authority.

B. Notice of Intent to Award

If a decision is made to take steps to enter into an agreement with one or more proposers, the

County will post a Notice of Intent to Award or otherwise notify proposers the remaining proposers of their non-selection. Notice may instead be provided by including approval of the agreement as an item on an agenda for a meeting of the Board of Supervisors.

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C. Commencement of Performance

After all parties have signed the agreement, the County will notify the contractor and performance may proceed. Prior to execution of the agreement by the County, no County employee may authorize work under the agreement. Any work performed prior to the full execution of the Agreement may not be compensated.

6.4. Term

Department of Housingis issuing Request for Proposal (RFP) No. 2024-RFP-00112 for Financial

Underwriting of Affordable Housing Development Funding Applications.

The agreement shall have a term of two (2) years. In addition, the County shall have one (1) option to extend the term for an additional period not to exceed two years, which the County may exercise in its sole, absolute discretion. To exercise this option, the County shall provide written notice to the Contractor at least thirty days before the end of the agreement’s term.

The County’s standard contract template has been included with this solicitation. The awarded contractor will be expected to sign an agreement prepared by the County using this template. Please ensure that your firm has completed legal review of these contract terms. If your firm wishes to request exceptions to these standard terms, submit a Contract Exceptions Request by the Deadline for Questions, Comments and

Contract Exceptions listed in the Solicitation Schedule below. The County will consider Contract

Exceptions Requests but reserves the right to reject requested modifications to its standard terms.

7. Terms and Conditions for Receipt of Proposals

7.1. Errors, Omissions and Inquiries regarding the RFP

Proposers are responsible for reviewing all portions of this RFP. Proposers are to notify the department, in eProcurement portal, if the proposer discovers any ambiguity, discrepancy, omission, or apparent error in the RFP. Such notification should be made promptly after discovery, but in no event later than five business days prior to the deadline for receipt of proposals. Modifications and clarifications will be made by addenda as provided below.

Inquiries regarding the RFP should be lodged in eProcurement portal.

7.2. Objections to RFP Terms

Should a proposer object on any ground to any provision or legal requirement set forth in this RFP, the proposer must, not more than ten calendar days after the RFP is issued, provide written notice to the department, via eProcurement portal, setting forth with specific grounds for the objection.

7.3. Addenda

The County may cancel, revise, or reissue this RFP, in whole or in part, for any reason. Revisions will be posted as Addenda on eProcurement portal. No other revision of this RFP is valid. Proposers shall be responsible for ensuring that their proposals reflects any and all Addenda issued by the County prior to the proposal due date regardless of when a proposal is submitted. Therefore, the County recommends that proposers consult eProcurement portal frequently, including shortly before the proposal due date, to confirm that all Addenda have been downloaded.

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7.4. Term of Proposal

Submission of a proposal signifies that the proposed services and prices are valid for the duration of the proposed agreement term and that the quoted prices are genuine and not the result of collusion or any other anti-competitive activity.

7.5. Revision or Withdrawal of Proposal

A proposer may revise a proposal on the proposer’s own initiative at any time before the deadline for submission of proposals. The proposer must submit the revised proposal in the same manner as the original on or before the proposal due date.

A proposer may withdraw a proposal at any time before the deadline for submission of proposals. After that time, whether or not a new RFP is issued for the same subject matter, withdrawal of a proposal may preclude the proposer from participating in the procurement as a proposer or subcontractor, except that an original equipment manufacturer may participate indirectly through a reseller.

7.6. Errors and Omissions in Proposal

The County will not be liable for any errors in proposals. Proposals may be rejected as unresponsive if they are incomplete, are missing pages or information, or cannot be opened for any reason. The County may waive minor irregularities, but such waiver will not modify any of the remaining RFP requirements.

7.7. No Commitment

Neither submission of a proposal nor the County’s receipt of proposal materials confers any right to the proposer nor any obligation on the County. This RFP does not commit the County to award a contract.

7.8. Financial Responsibility

The County shall have no financial responsibility for any costs incurred by a firm in responding to this

RFP or participating in any presentations or negotiations.

7.9. Estimated Quantity

If the RFP results in an indefinite quantity or a requirements agreement, the goods and services actually requested by the County may be less than the maximum value of the agreement and there is no guarantee, either expressed or implied, as to the actual quantity of goods and services that will be authorized under the agreement.

7.10. Public Record

A. General

1. All proposals, protests, and information submitted in response to this solicitation will become the property of the County and will be considered public records. As such, they may be subject to public review.

2. Any contract arising from this RFP will be a public record.

3. The County is not seeking proprietary information and will not assert any privileges that may exist on behalf of the proposer.

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4. Submission of any materials in response to this RFP constitutes:

▪ Consent to the County’s release of such materials under the Public Records Act without notice to the person or entity submitting the materials; and

▪ Waiver of all claims against the County and/or its officers, agents, or employees that the

County has violated a proposer's right to privacy, disclosed trade secrets, or caused any damage by allowing the proposal or materials to be inspected; and

▪ Agreement to indemnify and hold harmless the County for release of such information under the Public Records Act; and

▪ Acknowledgement that the County will not assert any privileges that may exist on behalf of the person or entity submitting the materials.

7.11. Reservations of Rights by the County

The issuance of this RFP does not constitute an agreement by the County that any contract will actually be entered into by the County. The County expressly reserves the right at any time to:

• Waive or correct any defect or informality in any response, proposal, or proposal procedure;

• Reject any or all proposals;

• Reissue an RFP;

• Prior to submission deadline for proposals, modify all or any portion of the selection procedures, including deadlines for accepting responses, the specifications or requirements for any materials, equipment or services to be provided under this RFP, or the requirements for contents or format of the proposals;

• Procure any materials, equipment or services specified in this RFP by any other means; or

• Determine that no project will be pursued.

7.12. No Waiver

No waiver by the County of any provision of this RFP shall be implied from any failure by the County to recognize or take action on account of any failure by a proposer to observe any provision of this RFP.

7.13. Cooperative Agreement (Piggyback)

This competitive solicitation is being conducted as a Cooperative Procurement. The services, terms and conditions of any agreement resulting from this solicitation may be used by other organizations as a

Cooperative Agreement.

This provision in no way commits any affiliate to procure services from any awarded contractor, nor does it guarantee that any additional orders will result. At their discretion, and subject to their own

Page 12 of 12 Release date of May 9, 2024 procurement policies, interested organizations may make use of this competitive procurement and contract directly from the awarded contractor.

8. Protest Procedures

8.1. Protest of Non-Responsiveness Determination

Within five (5) working days of the County's issuance of a notice of non-responsiveness, any firm that has submitted a proposal and believes that the County has incorrectly determined that its proposal is non-responsive may submit a written notice of protest. Such notice of protest must be received by the County on or before the fifth working day following the County's issuance of the notice of non-responsiveness. The notice of protest must include a written statement specifying in detail each and every one of the grounds asserted for the protest. The protest must be signed by an individual authorized to represent the proposer, and must cite the law, rule, local ordinance, procedure or RFP provision on which the protest is based. In addition, the protestor must specify facts and evidence sufficient for the County to determine the validity of the protest.

8.2. Protest of Contract Award

Within five (5) working days of the County's issuance of a notice of intent to award the contract, any firm that has submitted a responsive proposal and believes that the County has incorrectly selected another proposer for award may submit a written notice of protest. Such notice of protest must be received by the

County on or before the fifth working day after the County's issuance of the notice of intent to award.

The notice of protest must include a written statement specifying in detail each and every one of the grounds asserted for the protest. The protest must be signed by an individual authorized to represent the proposer, and must cite the law, rule, local ordinance, procedure or RFP provision on which the protest is based. In addition, the protestor must specify facts and evidence sufficient for the County to determine the validity of the protest.

8.3. Delivery of Protests

All protests must be received by the due date. If a protest is mailed, the protestor bears the risk of non-delivery within the deadlines specified herein. Protests should be transmitted by a means that will objectively establish the date the County received the protest. Protests or notice of protests made orally

(e.g., by telephone) will not be considered. Protests must be delivered to:

Protest@smcgov.org

Subject: Financial Underwriting of Affordable Housing Development Funding Applications, 2024-RFP-00112