Insurance Review Q and A B-50845 2-11-26 1.docx

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Attached to
Insurance Review, Tracking & Management Reissue RFP
Solicitation number
26-551HDA-LEGAL-B-50845
Issued by
Pope County, Illinois

About this file

This is a Pre-Bid Conference Q&A document for the Illinois Housing Development Authority (IHDA) Insurance Review, Tracking & Management Reissue RFP 26-551HDA-LEGAL-B-50845. The procurement seeks a qualified vendor to review, track, and manage certificates of insurance for IHDA's multifamily loan portfolio, ensuring compliance with industry standards for developers receiving IHDA financing for housing construction and renovation projects. IHDA currently processes approximately 80 projects annually requiring insurance certificate monitoring at initial closing, with 7-10 projects closing monthly. At final closing, approximately 30 projects require current insurance certificates, and an estimated 20 projects are in construction requiring renewal tracking. The vendor must manage five certificate types at initial closing (Owners Certificate of Liability, Builders Risk Insurance, General Contractor Certificate of Liability, Architect Certificate of Liability, and Property Manager Certificate of Insurance) and three at final closing. Critical timeline milestones include a pre-bid conference on February 5, 2026; vendor questions due February 10, 2026; proposal submission deadline of March 2, 2026; board selection by March 20, 2026; and anticipated contract start of April 1, 2026. The initial contract term is one year with three optional renewal periods of three years each, permitting a maximum total contract term of ten years.

IHDA currently manages insurance review with 2 staff members handling certificate processing via email, with the majority of submissions requiring revisions and averaging approximately 10 back-and-forth emails per project to achieve compliance. The primary challenges identified are developers not reviewing certificates for completeness and accuracy before submission and insufficient developer responsiveness. The RFP requires vendor provision of a centralized database system for tracking insurance certificates and automated reporting capabilities, including delinquent reports in 30-day increments. Qualified vendors must demonstrate commercial insurance review experience, maintain a functional database system, and employ at least three full-time staff members or provide equivalent technology automation. IHDA does not currently impose financial penalties for non-compliance and does not withhold construction draws for insurance deficiencies. No specific cybersecurity certifications (SOC 2, ISO 27001) are required. Upon contract conclusion, IHDA retains ownership of all certificate data and compliance records, with vendors required to transfer all approved certificates to IHDA within the specified timeframe. The procurement includes an 8% Business Enterprise Program participation goal with a mandatory $15 Minority Contractor Opportunity Initiative fee for contracts exceeding $1,000. Pricing must be submitted as firm fixed billing rates through the BidBuy platform with no allowable expenses, and contract values are based on fixed annual volumes of approximately 80 initial closing projects.

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Illinois Housing Development Authority (IHDA) Insurance Review, Tracking & Management Reissue RFP Q & A

26-551HDA-LEGAL-B-50845

Pre-Bid Conference

1. Current Backlog: What is the current backlog of overdue or missing insurance certificates? Please specify the number of projects and certificates currently outstanding and the average age of certificates in the backlog. On average IHDA has approximately 80 projects under construction in the pipeline a year close that require monitoring insurance certificates (Owners Certificate of Liability (Acord 25), Builders Risk Insurance (Acord 28), General Contractor Certificate of Liability (Acord 25), Architect Certificate of Liability (Acord 25) and Property Manager Certificate of Insurance (Acord 25)).

Initial close – we currently close approximately 7 - 10 projects a month that require current insurance certificates. (Owners Certificate of Liability (Acord 25), Builders Risk Insurance (Acord 28), General Contractor Certificate of Liability (Acord 25), Architect Certificate of Liability (Acord 25) and Property Manager Certificate of Insurance (Acord 25)).

Final close – we currently have an estimated 30 projects that require current Owners Certificate of Liability (Acord 25), Commercial Property Insurance (Acord 28) and Property Manager Certificate of Insurance (Acord 25) prior to final closing.

2. First-Pass Compliance Rate: What percentage of insurance certificates are submitted compliant on first submission versus requiring deficiency follow-up or resubmission?

The majority of insurance certificates submitted require some sort of revisions.

3. Delayed Closings Due to Certificate Issues: How many projects scheduled for closing in the past 12 months experienced delays due to insurance certificate deficiencies or non-compliance? What was the average delay period? Of the projects currently in your pipeline, how many are delayed past their anticipated closing date due to incomplete or deficient insurance documentation?

Insurance certificates have caused delays in closing, but it is a rarity.

4. Time to Approval: What is the average time from initial certificate submission to final approval/compliance? What is the longest time this process has taken? Typically, it takes approximately two weeks from initial receipt of insurance certificates to approval. This is dependent on the responsiveness of the developer/owner.

5. Communication Volume: What is the average number of back-and-forth communications (emails, calls) required per certificate to achieve compliance? On average there is 10 emails of back and forth per project to reach approval.

6. Developer Responsiveness: Are there specific challenges with developer/contractor responsiveness that you would like the vendor to address? (e.g., slow response times, incomplete submissions, lack of follow-through) The main challenge we have experienced is the Developer not reviewing the certificates before forwarding them on for completeness, accuracy, and that they meet IHDA’s requirements.

7. Closing Volume Targets: The RFP indicates 7-10 closings per month currently. Does IHDA have a target for monthly closings that is higher than current levels? If so, are certificate compliance issues a factor in not reaching that target? No IHDA doesn’t have a higher monthly target for closings. It fluctuates based on project readiness to close.

8. Capacity Issues & Staffing: The RFP indicates the need for at least 3 full-time staff members and/or appropriate technology automation to handle the insurance review workload. Currently, IHDA has 1 staff person in this role. Does the capacity issue refer to the 1 FTE to 3 FTE staffing gap, or are there process inefficiencies that automation could address? What are the top 3 challenges beyond capacity that the vendor should prioritize solving? Currently, IHDA has 2 staff personnel working on insurance certificates. A centralized database the vendor could provide for insurance certificates.

The main challenge we face is not receiving insurance certificates that meet IHDA’s requirements and the responsiveness in receiving the appropriate certificates.

9. Current Penalty Structure: Does IHDA currently impose any financial penalties, fees, or other consequences on developers/contractors for late submission of insurance certificates or failure to maintain compliant coverage during construction? If so, please describe the penalty structure and enforcement mechanisms. No

10. Enforcement Effectiveness: If penalties exist, what percentage of non-compliant developers actually incur these penalties? Are there challenges in enforcing compliance requirements? There are none.

11. Construction Draw Holds: Does IHDA have the contractual authority to withhold construction draw disbursements until insurance compliance is achieved? If so, is this mechanism currently utilized? No IHDA does not withhold construction draw disbursements for insurance non-compliance at this time.

12. Interest or Fees on Delays: Are there any provisions in IHDA's loan documents for charging interest, fees, or reducing loan proceeds when projects are delayed due to insurance non-compliance? No

13. Incentive Programs: Has IHDA considered or implemented any incentive programs (such as expedited processing, preferred rates, or recognition) for developers who consistently maintain excellent insurance compliance records? No

14. Developer Education: What is IHDA's current process for educating developers and their insurance agents about compliance requirements at the beginning of a project? Are there recurring compliance issues that suggest developers don't fully understand the requirements? Our insurance requirements are posted on IHDA’s website and are provided to the developers one month prior to closing.

15. Flood Zone Determination: Does IHDA conduct flood zone determinations for projects, or does the vendor need to coordinate this? If IHDA conducts them, at what stage are determinations typically completed? Floodplain requirements are determined at the beginning of the project.

16. Data Security Requirements: Does IHDA have specific data security, encryption, or cybersecurity requirements that vendor systems must meet? Are there compliance certifications required (SOC 2, ISO 27001, etc.)? IHDA does not have any specific data security, encryption, or cybersecurity requirements at this time. Compliance Requirements (SOC 2, ISO 27001, etc.) are not required.

17. Data Ownership & Retention: At the end of the contract term, what are IHDA's requirements for data transfer, retention, and destruction? Who owns the certificate data and compliance records? IHDA would own them and would need to have them transferred over to IHDA. At the same time all approved certificates for each project would need to be sent to IHDA to save to the folders. All approved insurance certificates are saved to IHDA’s PID folders.

18. Communication & Reporting Preferences: Is email notification and automated tracking acceptable for the majority of communications with developers, or does IHDA prefer telephone follow-up as a standard practice? Would IHDA prefer to be copied on all vendor-developer emails in real-time, or is access to a communications log/archive sufficient? IHDA would need to be copied on all emails and prefers this type of communication. Any other communication should be logged/archived and available to IHDA.

19. After-Hours Support: Are there situations where after-hours or weekend support would be needed (e.g., Friday closing deadlines)? If so, what response time would be expected? No, after-hours and weekend support is not necessary.

20. Escalation Protocol: What is the escalation process if a developer is consistently non-compliant or unresponsive? At what point does IHDA want to be directly involved versus having the vendor continue follow-up? IHDA should be notified of any developer that is unresponsive and/or non-compliant within an 48 hour period.

21. Additional Certificate Types: The RFP mentions 5 certificates at initial closing (Owner, Property, GC, Architect, Property Manager). Are there projects that require additional or specialized insurance types beyond those listed? If so, how often does this occur? IHDA may required additional or specialized insurance for Flood, Earthquake, or Mine Subsidence to be included on the Commercial Builders Risk/Property Insurance.

22. Error Resolution: What is the expected process and timeline if the vendor makes an error in reviewing or approving a certificate? 48 hours IHDA would required any errors/omissions to be resolved within 48 hours.

23. Project Volume Trends: The RFP estimates 80 projects per year for the initial term. Does IHDA anticipate this volume to increase in subsequent years? If so, what is the projected growth? IHDA estimates 80 projects per year for the next 3 years.

24. Transition of In-Construction Projects: For the approximately 20 projects currently in construction and substantially complete, will the vendor need to upload historical certificate data into their system, or will tracking begin from the contract start date forward? The vendor will begin tracking from the contract start date.

25. Parallel Operations Period: Will there be a transition period where IHDA staff and the vendor operate in parallel, or will responsibility transfer completely at contract start? It is anticipated there will be a transition period to ensure a smooth transition.

26. Asset Management Transition: The RFP mentions transfer to Asset Management at final close. Will the vendor's tracking system also be used by Asset Management for ongoing compliance monitoring, or is a separate handoff required? No, the final closing certificates will be sent by Multifamily directly to Asset Management for compliance monitoring for the remainder of the loan.

27. Are you able to provide me with insight on why this RFP was not fulfilled during your last attempt to solicit proposals? Several vendors stated that they did not receive the initial email while others choose not to respond.

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