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HomeMy WebLinkAboutRDA 06 HSNG SET-ASIDE 03-16-92RDA NO. 6 3-16-92 >i Ak tl LM MARCH 16, 1992 TO: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR s: -Rom: CHRISTINE A. SHINGLETON, ASSISTANT CITY MANAGER ij j�_^,7: HOUSING SET-ASIDE PROGRAM AND HOUSING STRATEGY RECOMMENDATION 1. Appropriate $100,000 from South Central Housing Set -Aside Funds (as part of 1991-92 Redevelopment Agency budget) for preparation of a Housing Set -Aside Program and Strategy and additional -services as needed. 2. Approve the attached Consultant Services Agreement with David Paul Rosen and Associates for preparation of a Housing Set- Asidv ?rogram and Strategy. BACKGROUND Section•33334.6 of the California Health and Safety Code requires that, with certain exceptions, each redevelopment project area set aside a minimum of 20% of its tax increment into a low and moderate income housing fund. The revenue from the low and moderate income housing fund must be used for the purpose of increasing, improving, and preserving the community's supply of low and moderate income housing available at affordable housing costs within the territorial jurisdiction of the Agency. In accomplishing these statutory requirements, the Agency may use its housing set-aside funds by exercising any or all of it's powers, including but not limited to the following: 1. Acquire land or building sites 2. Improve land or building sites with on-site or off-site improvements. 3. Donate land to private or public persons or entities 4. Construct buildings or structures 5. Acquire buildings or structures 6. Rehabilitate buildings or structures 7. Provide subsidies to, or for, the benefit of very low income households or persons and families of low or moderate income. 8. Contribute towards preparation of development plans, pay principle and interest or bonds, loans and other indebtedness, or pay financing charges. Redevelopment Agency Report Housing Set -Aside Program & Housing Strategy March 16, 1992 Page 2 Recent changes in redevelopment law also now require an Agency to expend or encumber Housing Set -Aside funds in excess of $500,000 within five ( 5 ) years of the fiscal year accrued. As the Agency is aware, the South Central Project Area is accruing between $400,000 and $500,000 a year in housing set-aside funds. The Agency has been deferring its annual contribution of housing set-aside funds in the Town Center Project Area due to other financial and program obligations as it is permitted to do under State law. However, all housing set-aside funds deferred are considered a future obligation which will need to be planned for over the life of the project area. It is estimated that by fiscal year 1996-97 this deferred obligation will be. approximately $5 million dollars. In addition, new valuation"expected to be added in Town Center could generate up to $850,000 in annual housing set- aside funds in the Town Center Project area by year 2016 (or a total of approximately 13.5 million dollars). With the $5 million dollar anticipated deferred housing set-aside obligation in the Town Center Project Area through fiscal year 1996-97, total set- aside funds available in the Town Center Project could approach $18.5 million dollars over the next 15 years. The amount of housing set-aside funds potentially available as well as complexities of state redevelopment law regulating their use, necessitates preparation of a comprehensive housing set-aside program and citywide housing strategy. Recent modification to federal law also require preparation of a Housing Strategy Plan as a condition of the future receipt of federal grant funds. Preparation of this plan was originally programmed for this fiscal year. In order to complete this effort as soon as possible and obtain the best possible program, outside consultant services are necessary. We have selected the firm of David Rosen and Associates for the program. Mr. Rosen's firm is a nationally recognized firm with offices in Oakland and Irvine who specializes in development of comprehensive strategies for the use of housing set-aside funds. A selected list of some of their public agency clients currently include the U.S. Department of Housing and Urban Development; the Counties of Sacramento, Los Angeles, and San Joaquin; the cities of San Diego, San Jose, Oakland, Sacramento, Long Beach, Orange, Irvine, Brea and Rancho Cucamonga. The proposed contract and scope of services is attached. The maximum not to exceed price for preparation of the plan is $90,000. In addition to preparation of the Housing Set -Aside Plan and Strategy, the contract provides for the authorization of additional services (estimated at approximately $10,000) which must first be agreed to in writing by the contract officer. We anticipate that Redevelopment Agency Report Housing Set -Aside Program & Housing Strategy March 16, 1992 Page 3 Mr. Rosen's services will be extremely helpful in developer negotiations within each project area. f V-4, Christine A. Shinglgfon Assistant City Manager CAS:rm\setaside.cas CONSULTANT SERVICES AGREEMENT This Agreement for Contract Services (herein "Agreement"), is made and entered into by and between the CITY OF TUSTIN COMMUNITY REDEVELOPMENT AGENCY ("Agency"), and David Paul Rosen and Associates, ("Consultant"). WHEREAS, Consultant is qualified to provide the necessary services and has agreed to provide such services; and WHEREAS, Consultant has submitted to Agency a proposal, dated February 28, 1992, a copy of which is attached hereto as Exhibit "A", and is by this reference incorporated herein as though set forth in full hereat (the "Proposal"). NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, Agency agrees to employ and does hereby employ Consultant and Consultant agrees to provide consulting services as follows: 1. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms _ and conditions of this Agreement, Consultant shall provide those services specified in the "Proposal and Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference, (the "services" or the "work"). Consultant warrants that all services shall be performed in a competent, professional and satisfactory manner in accordance with all standards prevalent in the industry. 1.2 Consultant's Proposal. The scope of services shall include all the terms contained in Exhibit "A". In the event of any inconsistency between the terms contained in Exhibit "A" and the terms set forth in the main body of this Agreement, the terms set forth in the main body of this Agreement shall govern. 1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all laws, ordinances, resolutions, statutes, rules, and regulations of the City of Tustin and of any federal, state or local governmental agency of competent jurisdiction. 1.4 Licenses and Permits. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law f or the performance of the services required by this Agreement. _ 1.5 Familiarity with Work. By executing this Contract, Consultant warrants that Consultant (a) has thoroughly -1- investigated and considered the work to be performed, (b) has investigated the site of the work and become fully acquainted with the conditions there existing, (c) has carefully considered how the work should be performed, and (d) fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should the Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the Agency, Consultant shall immediately inform Agency of such fact and shall not proceed with any work except at Consultant's risk until written instructions are received from the Contract officer. 1.6 Care of Work. Consultant shall adopt and follow reasonable procedures and methods during the term of the Agreement to prevent loss or damage to materials, papers or other components of the work, and shall be responsible for all such damage until acceptance of the work by Agency, except such loss or damages as may be caused by Agency's own negligence. 1.7 Additional Services. Consultant shall perform services in addition to those specified in the Proposal when directed to do so by the Contract Officer, provided that Consultant shall not be required to perform any additional services without compensation. Any additional compensation not exceeding ten percent (10%) of the Contract sum must be approved in writing by the Contract officer. Any greater increase must be approved in writing by the City Manager. 1.8 Special Requirements. Any additional terms and conditions of this Agreement, are set forth in Exhibit "B" hereto, "Special Requirements" and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit "B" and any other provision or provisions of this Agreement, the provisions of Exhibit "B" shall govern. 2. COMPENSATION 2.1 Compensation of Consultant. For the services rendered pursuant to this Agreement, the Consultant shall be compensated and reimbursed only such amounts as are prescribed in the Proposal and consistent with Exhibit C. schedule of compensation. 2.2 Method of Payment. In any month in which Consultant wishes to receive payment, Consultant shall no later than the first working day of such month, submit to Agency in the form approved by Agency's Director of Finance, an invoice for services rendered prior to the date of the invoice. Agency shall pay Consultant for all expenses stated thereon which are approved by Agency consistent with this Agreement, no later than the last _ working day of said month. -2- 2.3 Changes. In the event any change or changes in the work is requested by Agency, the parties hereto shall execute an addendum to this Agreement, setting forthwith particularity all terms of such addendum, including, but not limited to, any additional Consultant's fees. Addenda may be entered into: A. To provide for revisions or modifications to documents or other work product or work when documents or other work product or work is required by the enactment or revision of law. subsequent to the preparation of any documents, other work product or work; B. To provide for additional services not included in this Agreement or not customarily furnished. in accordance with generally accepted practice in Consultant's profession. 2.4 Payment for Changes. Approved change orders shall be compensated at the personnel hourly rates prescribed in Exhibit "C" hereto (where applicable, rates shall apply to travel time). 2.5 . Statement of Costs . Pursuant to the provisions of California Government Code Section 7550, the total amount expended by Agency relating to the preparation of any report or documents prescribed herein shall be set forth within the final edition thereof, in a separate section, in a statement substantially as follows: Pursuant to California Government Code Section 7550 the City of Tustin expended the total amount of $90,000.00 for the preparation of this report and/or documents. 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed within any time periods prescribed in any Schedule of Performance attached hereto marked Exhibit "D". Extension of any time period specified in the Exhibit "D" must be approved in writing by the Contract officer. 3.3 Force Majeure. Time for performance of se to be rendered pursuant to this Agreement may be a because of any delays due to unforeseeable cau nd the control and without the fault or negligence a Consultant, including, but not restricted to, acts od or of a public enemy, acts of the government, fi , earth'luakes, floods, epidemic, quarantine restric ' , riots, strikes, freight embargoes, and unusually -3- severe weather if the Consultant shall within ten (10) days of the commencement of such condition notify the Contract Officer who shall thereupon ascertain the facts and the extent of any necessary delay, and extend the time for performing the services for the period of the enforced delay when and if in the Contract Officer's judgment such delay is justified, and the Contract Officer's determination shall be final and -conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in accordance with Section 7.7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from date hereof. 4. COORDINATION OF WORK 4.1 Representative of Consultant. The following Principal of the Consultant is hereby designated as being the principal and representative of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: David Paul Rosen, It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principal is a substantial inducement for Agency to enter into this Agreement. Therefore, the foregoing Principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing Principal may not be changed by Consultant without the express written approval of Agency. 4.2 Contract -officer. The Contract Officer for the Agency shall be the Director of Community Development unless otherwise designated in writing by the City Manager. It shall be the Consultant's responsibility to keep the Contract Officer fully informed of the progress of the performance of the services and Consultant shall refer any decisions which must be made by Agency to the Contract Officer. Unless otherwise specified herein, any approval of Agency required hereunder shall mean the approval of the Contract officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the Agency to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the Agency. In addition, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of Agency. -4- 4.4 Independent Contractor. Neither the Agency nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor and shall remain at all times as to Agency a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of Agency. 5. INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance. Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's performance under this Agreement. Consultant shall also carry workers' compensation insurance in accordance with California worker's compensation laws. Such insurance shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty ( 3 0 ) days written notice to Agency of any proposed cancellation. A certificate evidencing the foregoing and designating Agency as an additional named insured shall be delivered to and approved by the Agency prior to commencement of the services hereunder. The procuring of such insurance and the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify the Agency, its consultants, officers, and employees. The amount of insurance required hereunder shall include comprehensive general liability, personal injury and automobile liability with limits of at least One Million Dollars ($1,000,000) combined single limit per occurrence and professional liability coverage with limits of at least Five Hundred Thousand Dollars ($500,000). 5.2 Indemnification. The Consultant shall defend, indemnify and hold harmless the Agency, its officers and employees, from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person or persons, for damage to property, including property owned by Agency, and for errors and omissions committed by Consultant, its officers, employees and agents, arising out of or related to Consultant's performance under this Agreement, except for such loss as may be caused by Agency's own negligence or that of its officers or employees. 6. RECORDS AND REPORTS 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the -5- performance of the services required by this Agreement as the Contract officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to properly perform the services required by this Agreement and enable the to evaluate the performance of such services. The Contract sofficer at l shall have full and free access tosuch bo ks and p audit and reasonable times, including the rig ht to inspect, copy, make records and transcripts from such records. 6.3 ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of this Agreement shall be the property of Agency and shall be delivered to Agency upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by Agency of its full rights or ownership of the documents and materials hereunder. Consultant may retain copies of such documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. 6.4 Release of. Documents. All drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. 7. ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefor. The injured party shall continue performing its obligations hereunder so long as the injuring party cures any default within thirty ( 30) days after service of the notice, or if the cure of the default is commenced within ten (10 ) days after service of said notice and is cured within a reasonable time after commencement; provided that if the default is an immediate danger to the health, safety and general welfare, the Agency may take immediate action under Section 7.5 of this Agreement. Compliance with the Q:� provisions of this Section shall be a condition precedent to any legal action, and. such complianceishall not be a waiver of any party's right to take legal action n the event that the dispute is not cured. 7.3 Waiver. No delay or omissidn in the exercise of any right or remedy of a non -defaulting party on any default shall impair such right or remedy or be construed deemed to waive Lor rrender consent or approval of Agency shall b unnecessary Agency's consent to or appartalofany of Consultant. Any waiver by either p y Y defaultmustbe in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.4 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.5 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, a declaratory judgment or any other remedy consistent with the purposes of this Agreement. 7.'6 Liquidated Damages. Since the determinatio actual damages for any delay in performance of this ent would be extremely difficult or impractical to deter ' e in the event of a breach of this Agreement, the Cons and its sureties shall be liable for and s pay to Agency the sum of Dollars ($ ) as liquidated dama or each working day of delay in the performance of any se a required hereunder. The Agency may withhold from any Les payable on account of services performed by the sultant any accrued liquidated damages. 7.7 Termination Prior to Expiration of Term. The Agency reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Consultant, except that where termination is due to the fault of the Consultant and constitutes an immediate danger to health, safety and general- welfare, the period of notice shall be such shorter time as may be appropriate. Upon receipt of the notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter. -7- 7.8 Termination for Default of Consultant. If termination is due to the failure of the Consultant to fulfill its er the work and obligations under this Agreement, Agency may take prosecute the same to completion by contract or the total ,cost for the Consultant shall be liable to the extent that completion of the services required hereunder exceeds the compensation herein stipulated, provided that the Agency shall use reasonable efforts to mitigate damages, and Agency set off or partial payments to the Consultant for the purpose o payment of the amounts owed to Agency. 7.9 Attorneys Fees. If either party commences an action against the other party arising out of or in connection with this Agreement or it subject matter, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8. CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION 8.1 Non -Liability of CitV O and Employees. No off icer or employee of City s e personally liable to the Consultant, or any suc or -in -interest, eventin the become default or breac he City or for any amount whichmay due to onsultant or its successor, or for breach of any o ion of the terms of this Agreement. 8.2 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there of shall orbe no discrimination or segregation in the performance in connection with this Agreement regarding any person or group of persons on account of race, color, creed, religion, sext shall marital status, national origin, or ancestry. Cons ultanttake affirmative action to insure that applicants and employees are treated without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry. -8- 9. MISCELLANEOUS PROVISIONS 9.1 NoNotice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by pre -paid,' first-class mail to the address set forth below. Either party may change its address by notifying the other party of the changeof address in writing. Notice shall be deemed communicated forty-eight ( 48 ) hours from the time of mailing if mailed as provided in this Section. To Agency: CITY OF TUSTIN COMMUNITY REDEVELOPMENT AGENCY 15222 Del Amo Avenue Tustin, CA 92680 Attention: Director (Contract To Consultant: 9.2 of the agreements except by written David Paul Rosen and 6048 Chelton Drive Oakland, California of Community Development officer) Associates 94611 Integrated Agreement. This Agreement contains all of the parties and cannot be amended or modified agreement. 9.3 Amendment. This Agreement mended at any time by the mutualc les by an instrument in writ' 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or ns contained in this Agreement shall be invalid or unenforceable by valid judgment or a of a court of competent jurisdiction, such invalidi unenforceability shall not affect any of the remainin ases, sentences, clauses, paragraphs, or sections of t greement I which shall be interpreted to carry out the i of the parties hereunder. 9.5 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. Dated: APPROVED AS TO FORM: James G. Rourke City Attorney "Agency" CITY OF TUSTIN COMMUNITY REDEVELOPMENT AGENCY By. • Christine Shingleton Director of Community Development "Consultant" David Paul Rosen and -Associates By. David Paul Rosen Principal -10- EXHIBIT "A" PROPOSAL and SCOPE OF SERVICES Attached hereto are: 1) Consultant's Proposal and Scope of Work and Budget. CONSULT\agmtrad.ros -11- David Paul Rosen & Associates CONINII'NITY I)IIVEII,OPNIENT CONSI'lAANTS Southern California Office 3941 Hcndrix Strcct Irvine, California 92714 (714) 559-5650 FAX: (714)559-5700 David Paul Rosen & Associates South-Central/Town Center RDA Set -Aside Program and Citywide Housing Strategy Scope of Work and Budget City of Tustin 1. Kick -Off Meeting The Consultants will attend an all -day meeting with staff to familiarize the Consultants with the City and to refine the scope of work and schedule. 2. Review Housing Need and Market Data Considerable work has been done to assess affordable housing needs and market conditions as part of the City of Tustin General Plan and Housing Element Revision currently underway. City staff will provide the Consultant data on current housing needs (overpayment, overcrowding, rehabilitation, and special housing needs populations) and projected future housing needs (SCAG RHNA, other). The Consultant will work with staff to identify potential locations for affordable housing development and preservation. The Consultant may identify an inventory of possible sites, and may identify additional need data useful to the housing strategy. 3. Housing Affordability Gap Analysis Upon compiling and reviewing housing cost data, the Consultant will conduct a housing affordability gap analysis. The Consultant will develop accurate estimates of housing affordability gaps at various income levels and family sizes based on a review of market and income data in Tustin, as well as our own considerable experience in Southern California Estimates of the affordability gap will document the difference between the cost of providing certain housing, both renter and owner, and the amount households at different income levels can afford to pay for housing. The affordability gap analysis provides an understanding of the need for new subsidy capital if a jurisdiction is to adopt an affordable housing strategy responsive to local needs and resources. The following steps would be followed: Define target income levels (we propose to analyze two income levels"); 11. Estimate affordable monthly housing costs; 3. Develop housing cost prototypes (rental and ownership units, two prototypes will be developed for each); 4. Calculate affordability gap between the amount households can afford to pay versus prototypical housing costs; and, 5. Calculate subsidy needs. Target income levels will be selected in consultation with staff. David Paul Rosen & Associates 4. Review Local Programs, Non -Local Resources and Legal Requirements The purpose of these activities is to assure that the Consultant will appropriately advise the Agency and City in developing its Affordable Housing Strategy within the context of its housing needs, current and past programs, current and prospective revenue resources available for affordable housing, and current and proposed land use policies. a. Local Programs and Resources City staff will provide information to the Consultants on existing programs and current and projected resources for the South -Central Redevelopment Agency Housing Set - Aside Program. The Consultants will review and comment on program guidelines for the private property housing improvement within the South -Central area, which have received a combined funding commitment of $550,000 for FY 1992/93. b. Leverage Opportunities Consultants will conduct a comprehensive review and description of currently available leverage opportunities for affordable housing subsidies from non -City sources. Leverage opportunities will be comprehensively surveyed among state, federal and private sector sources. This review will describe programs available to Tustin, associated program requirements, and remaining available funding levels. The following non -local sources will be among those analyzed: State Department of Housing and Community Development, California Housing Finance Agency, Federal and State Low Income Housing Tax Credits, U.S. Department of Housing and Urban Development, Orange County Housing Authority, community reinvestment loan commitments from private lenders, non-profit intermediaries and other private sector resources. The Consultant will also assist the Agency and the City in establishing an appropriate long term leverage goal for non -City affordable housing resources. C_ Legal Requirements The Consultant will identify how the City can best comply with the Federal and State regulations governing their housing efforts. The first is the City's compliance with the requirement of the Cranston -Gonzalez National Affordable Housing Act of 1990 to submit to HUD the Comprehensive Housing: Affordability Strategy (CHAS) by October 31, 1991. Second, the Consultant will address compliance under the recently stiffened requirements pursuant to the California Housing Element law, as administered by HCD. Third, the Consultant will address Redevelopment Agency funding, replacement housing and inclusionary housing obligations within redevelopment project areas. 2 David Paul Rosen be Associates 5. Housing Assistance Policies The strategy must be informed by policies which provide clear guidance for the targeting of limited City and leveraged resources. The consultants will clarify and recommend modifications to current RDA prioritization, goals and policies. Policy guidelines may include but will not be limited to such issues as income targeting, definition of affordable housing expense, mix of unit sizes, leverage goal for non -City affordable housing subsidy sources, compliance with state and federal legal requirements, tenure, affordability term, compliance with City standards and procedures, Article 34, location, housing type and tenure, energy efficiency, efficient and innovative program design, mixed use projects, public/private partnerships, and other factors. 6. Housing Assistance Goals and Capital Plan Requirements Once the housing assistance policies described above are established, specific housing assistance goals specifying the number of households to be assisted by tenure, family income, family size and special needs population. They will also describe achievable objectives over a ten-year period. DRA will detail the affordable housing capital requirements needed to achieve these assistance goals. These capital requirements will be categorized by: • Subsidy capital • Debt capital • Equity capital 7. Affordable Housing Program Elements and Implementation Plan The Consultant will prepare program descriptions and recommendations for a variety of program elements suggested as necessary to carry out the assistance goals of the Affordable Housing Strategy. Program elements to be considered may include the following, as well as others: • Emergency foreclosure and rent relief; • Housing rehabilitation grants or loans; • Mortgage "buy -down" and "second loan" programs to assist qualified home purchasers in obtaining financing for the acquisition of housing units; • New affordable housing construction; • Transitional and single -room occupancy housing (including potential use of Base "bachelor" units); • Mobile home park purchase assistance; 3 David Paul Rosen & Associates • Syndications using Federal and State Low Income Housing and Federal Historic Rehabilitation Tax Credits; • Negotiations with developers for inclusionary components to overall development plans; • Acquisition of existing housing; • Preservation of existing affordable housing at -risk of conversion to market rate; • Creation of a non-profit Housing Development Corporation. • Community lending partnerships with financial institutions under the Community Reinvestment Act (CRA) and the Financial Institutions Reform, Responsibility and Enforcement Act (FIRREA); and, • Development of a community involvement and public information component to create promotional materials marketing the various programs for distribution to the target audiences. Consultants will work to design program elements so that they are consistent with Agency housing assistance policies and the City's Housing Element and feasible within the City's current and potential financial resources. An implementation process, will be developed for each recommended program. Consultants will work with staff to determine staffing/consultant requirements as appropriate to implement the affordable housing strategy. 8. Additional Services On a time and expense reimbursement basis, Consultant will review and comment on specific developer proposed affordable housing projects and perform other tasks as agreed to in writing by the contract officer. Meetings and Presentations Members of the Consultant Team will be present at meetings as desired and requested by City staff. Meetings will be paid on a time and expense basis according to the attached fee and expense reimbursement schedule, allowing for on-site and preparation time, and the following reimbursable expenses, as needed: coach round-trip air travel, lodging, meals, ground transportation and parking expenses. The maximum meeting budget in the fee schedule will not be exceeded without prior authorization of the Agency and the City. Production Expenses Production expenses include secretarial, accounting, and data processing services, fax and Federal Express expenses, volume copying expenses, long distance telephone expenses, and production materials as required (e.g., notebooks and dividers. 0 David Paul Rosen & Associates The not -to -exceed maximum price for preparation of the above scope of services is $90,000. The Consultant will bill on a time and expense basis against the contract maximum, which in no event may be exceeded without the mutual written consent of the City and the Consultant. Billing rates for professional fees and expense reimbursement will be per the attached 1992 fee and expense reimbursement schedule. 1993 fees may vary with prior notice to the City. The following is an estimated breakdown of costs by task. Actual costs by task may vary based on staff direction and emphasis. 1. Kick -Off Meeting $3,500 2. Review Housing Need and Market Data $31000 3. Housing Affordability Gap Analysis $61500 4a Review Local Programs $53,000 4b. Review Leverage Opportunities $7,500 4c. Legal Requirements $53,000 5. Housing Assistance Policies $731500 6. Housing Assistance Goals and Capital Plan Requirements $71,500 7. Affordable Housing Program Elements $20,000 8. Additional Services To Be Determined Meetings $191500 (to be charged on a time and expense basis up to a maximum budget) Production $5,000 (to be charged on a time and expense basis up to a maximum budget) Total $90,000 SC'H ,DULE Consultants will work City staff to develop a mutually agreed upon study schedule for completing the above scope of services, with final completion of the Affordable Housing Strategy prior to July 1, 1992. 6 David Paul Rosen & Associates The Consultant team will consist of Mr. David Rosen, Associates; Nora Lake -Brown, Director, David Paul Rosen Office; and Mr. Roger Clay, Partner, Goldfarb & Lipman project manager. Contacts are: Mr. David Rosen David Paul Rosen & Associates 6048 Chelton Drive Oakland, California 94611 (510) 530-0892 FAX (510) 530--6965 Ms. Nora Lake -Brown David Paul Rosen & Associates Southern California Office 3941 Hendrix St. Irvine, California 92714 (714) 559-5650 FAX (714) 559-5706 Mr. Roger Clay Goldfarb & Lipman #1 Montgomery St. West Tower, 23rd Floor San Francisco, California 94104 (415) 788-6336 FAX (415) 788-0999 Principal, David Paul Rosen & & Associates Southern California . Ms. Lake -Brown will serve as David Paul Rosen & Associates 6(98 Chelron Dri%'e Oakland, California 94611 (4 l 5) 530-0892 FAA: (415) 530-6965 Calendar Year 1991. DAVID PAUL ROSEN & ASSOCIATES Professional Fee Schedule The following fee schedule represents fees and reimbursable expenses for 1990. Principal Consultant: $ 135.00 per hour Principal Legal Associate: $ 180.00 per hour Senior Legal Associate: $ 160.00 per hour Junior Legal Associate: $ 145.00 per hour Entry Legal Associate: $ 125.00 per hour Legal Clerk Associate: $ 75.00 per hour Senior Economist: $ 125.00 per hour Junior Economist: $ 100.00 per hour Research Associates: $ 50.00 - $ 90.00 per hour Data Entry, Word Processing, Administrative Assistance, Accounting: $ 45.00 per hour The following costs are reimbursable expenses with supporting receipts: round trip coach airfare as mutually agreed to by client and consultant; economy rental car as needed; hotel and meals as needed; long distance telephone, Federal Express and fax services; volume copying at cost. • A 1.75% per month surcharge will be added to invoices which are unpaid after thirty days of their mailing from DRA offices.