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HomeMy WebLinkAboutCC 05-19-2026 Item No. 21 Authorization to execute BMR Housing Administration Contract_Staff PresentationCC - 5-19-2026 #21 Authorization to execute BMR Housing Administration Contract Presentation Nicky Vu, Senior Housing Coordinator May 19, 2026 Below Market Rate (BMR) Administration Agreement Background ●The City requires that housing developments provide a percentage of units to be affordable (inclusionary housing program) ●These units are jointly administered by a single entity to ensure compliance and centralize the program to a single waitlist ●RISE Housing is the City’s current BMR Administrator. Their contract expires June 2026. Request for Proposals (RFP) November 3, 2025 – Open for responses December 3, 2025 – Closed ●3 proposals December 2025 – Staff Evaluations ●2 proposals January 2026 – Interviews ●1 proposal March 2026 – Housing Commission Update May 2026 – City Council authorize execution of agreement Evaluation Criteria ●Firm and Project Team Qualifications ●Work Plan Approach ●California/Bay Area Integration ●Pricing/Costs Program Priorities ●Expiration of 95 out of 119 rental units in the portfolio due to 30 year sunset ●Negotiation of final leases, support to tenants for reapplication process, landlord compliance, general support services ●RISE Housing showed the strongest understanding of and preparation of work expectations and had complete multiyear proposal Housing Commission Direction ●March 26 staff presentation ●Generally in agreement with staff decision, but asked that staff consider proposed innovative process improvements from best practices in other jurisdictions ●Staff to explore the possibility of enacting these improvements through final negotiations with RISE Housing . Final Negotiations ●Reduce costs by charging price of BMR homeowner resale as an admin fee to sellers in the program ●Requires separate Council action to approve a new fee ●Reduce wait times by utilizing the Bay Area Housing Finance Authority (BAHFA) Doorways portal for centralized listings ●Requires separate Council action to move to year-round waitlist, requires adding work item: purge list . RISE Housing Proposal ●3 year contract ●FY26-27, FY 27-28, FY 28-29 ●Approximately $160,000 per year ●3 person team ●General Admin, Purchase Program, Rental Program . General Fund Appropriation ●Aligned with City Council direction of April 15, 2025 Housing funding awards ●Prioritize BMR Affordable Housing Fund (BMR AHF) for available new construction of affordable housing projects ●Reprogram administration services through General Fund. Motion ●Authorize the City Manager to execute the agreement with RISE Housing, Inc for Below Market Rate Administration services for FY26-29 and appropriate $470,650 from the General Fund. .