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To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	May 16, 2023

Contra

Costa

County

Subject:

CONTRACT WITH AFFORDABLE HOUSING NETWORK, LLC. FOR RENT REASONABLENESS DETERMINATION AND HOUSING CHOICE VOUCHER PROGRAM RENTAL LISTING SERVICES

Action of Board On: 05/16/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, Commissioner
Candace Andersen, Commissioner
Ken Carlson, Commissioner
Federal D. Glover, Commissioner
Cynthia Jordan, Commissioner
Joanne Segura, Commissioner

ABSENT:

Diane Burgis, Commissioner

Contact:

925-957-8028

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: May 16, 2023
,

BY:	, Deputy

RECOMMENDATIONS

APPROVE and AUTHORIZE the Executive Director to execute a contract with Affordable Housing Network, LLC. for rent reasonableness determination and Housing Choice Voucher program rental listing services for the period of March 1, 2023, through February 29, 2028.

BACKGROUND

All of the Assisted Housing Programs operated by HACCC require that families select and rent units that meet program housing quality standards as well as rent reasonableness. HACCC may not approve a tenancy unless the rent is reasonable. HUD requires housing authorities to complete rent reasonableness determinations for all units at initial occupancy, anytime there is a rent adjustment requested by the owner, whenever units are added to an existing Project-Based Voucher contract, anytime there is a 10% or greater reduction in the Fair Market Rents published by HUD each year or at the request of HUD.

BACKGROUND (CONT'D)

Assisted rents must be comparable to unassisted units in the private rental market or in the premises. To make this determination, HACCC must consider:

(1) The location, quality, size, unit type, and age of the contract unit; and

(2) Any amenities, housing services, maintenance, and utilities to be provided by the owner in accordance with the lease.

HACCC historically has been using the services of GoSection8 to collect, document and disperse comparability data and information to support its leasing activity under all assisted housing programs. In 2019, GoSection8 rebranded itself as AffordableHousing.com, a product of Affordable Housing Network, LLC. The contract with GoSection8/Affordable Housing Network, LLC has expired, yet HACCC continues to need their services for rent reasonableness determination.

Given the lack of qualified vendors to provide these services, HACCC secured approval from the HUD regional office of procurement to pursue a contract with Affordable Housing Network, LLC as a sole-source procurement action. HACCC negotiated renewal terms with Affordable Housing Network, LLC and is now seeking to get Board approval to execute the contract.

The annual costs indicated above reflects an average per year since an annual cost of living adjustment was built into the pricing for each contract year after the initial year for up to five(5) years.

FISCAL IMPACT

The total annual cost for this contract averages out to approximately $30,000 per year and up to $150,000 over a five-year period. Funding for this contract is included in the Housing Authority's (HACCC) budget.

CONSEQUENCE OF NEGATIVE ACTION

Should the Board of Commissioners not approve a contract renewal with Affordable Housing Network, LLC for rent reasonableness services for all its assisted housing programs, there would be corresponding delay in leasing all households into units and processing any rent increases as staff would have to take time away from their work to search for unit comparability data and build a database of resources that can be used on a daily basis. This would cause HACCC to fall out of compliance with HUD’s regulated timelines for the execution of new leases and initial Housing Assistance Payments and delay occupancy for families.