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Second Floor
Anaheim, CA 92805
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Fax: (714) 765-4331
www.anaheim.net
HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: JUNE 18, 2024
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVE PROFESSIONAL SERVICES AGREEMENT WITH
NAN MCKAY AND ASSOCIATES, INC. FOR CASE
MANAGEMENT SERVICES
ATTACHMENT (Y/N): YES ITEM # 01
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion, approve a Professional Services Agreement with Nan McKay and Associates, Inc. for case management services, in an amount not to exceed $1,100,000, for an initial three-year term ending June 30, 2027 with two one year optional renewals, and authorize the Executive Director to execute and administer the Agreement on behalf of the Anaheim Housing Authority.
DISCUSSION:
The Anaheim Housing Authority (Authority) is a Public Housing Agency (PHA) responsible for administering the Housing Choice Voucher (HCV) program in the City of Anaheim on behalf of the U.S. Department of Housing and Urban Development (HUD). As the federal government’s largest housing initiative, the HCV program helps very low-income individuals and families to afford decent, safe, and sanitary housing in the private rental market through the provision of rental subsidies. Currently, the Authority provides rental subsidies to approximately 6,700 households. Congress allocates funding for the HCV program annually, and HUD disburses it to local PHAs.
The Authority operates under an Annual Contributions Contract (ACC) with HUD, which mandates the administration of the HCV program in compliance with federal laws and regulations. Federal regulations for the HCV program require PHAs to recertify the income and circumstances of every assisted household, at least annually, to verify continued program eligibility. This task is performed by providing case management services in which the Authority works closely with HCV program participants to perform income recertifications, ensure ongoing program compliance, and assist in housing-related issues that fall under the purview of the program. HUD sets accuracy and timeliness standards for these processes, and adherence to these standards is a contractual obligation essential for the Authority.
Approve Professional Services Agreement with Nan McKay & Associates for Case Management Services June 18, 2024
At times, gaps in staffing due to the departure of staff and/or extended leaves due to illness or other circumstances beyond anyone’s control may impede the Authority’s ability to meet program standards. While in some circumstances, gaps in staffing can be handled by reassigning work or by bringing on temporary staffing, the recertification process requires specific knowledge of program regulations and eligibility standards, and access to temporary staffing with this skill level is very limited.
As a result, staff deemed it prudent to explore alternative temporary staffing options and initially released a Request for Proposals (RFP) on January 18, 2019, seeking assistance with performing income recertifications. Nan McKay and Associates, Inc. was selected as the consultant from this RFP, and the initial agreement is set to end on June 30, 2024, having utilized its last extension allowed. In order to further address potential case management requirements, staff initiated a new Request for Proposals (RFP) on March 12, 2024, to once again engage in a competitive process and choose a consultant to provide assistance with case management services.
The RFP for case management services closed on April 12, 2024, and the Authority received four responses (Nan McKay & Associates, Inc., Allecca Consulting, Section 8 Management, and Quadel Consulting and Training, LLC). The proposals were evaluated based on the following criteria: (i) Capacity, Experience, and Qualifications; (ii) Approach and Response to Scope of Services; and (iii) Cost Proposal. Upon review, Nan McKay and Associates, Inc. (Nan McKay) was selected as the winning proposal.
Accordingly, staff recommends the approval of a Professional Services Agreement (Agreement) with Nan McKay in an amount not to exceed $1,100,000 with an initial three-year term, commencing July 1, 2024, and ending June 30, 2027, with the option to extend the same terms and conditions for two additional one-year terms ending June 30, 2029. Nan McKay, a California corporation, specializes in offering professional services to housing authorities and municipalities nationwide. Its sister entity, NMAI, LLC, is a California limited liability corporation that provides inspection services to housing authorities across the country. While they work in tandem, each entity concentrates on different operations: Nan McKay on case management and NMAI on inspections. Nan McKay is a distinguished consulting firm specializing in offering technical support and training to PHAs. Since 1980, they have established themselves as industry leaders, offering expertise in all aspects of the HCV program and other HUD-related services.
Under the terms of the Agreement, Nan McKay will assist the Authority by providing case management services to program participants, when requested, in accordance with all HUD regulations and the Authority’s Administrative Plan. Nan McKay’s assigned duties include but are not limited to, collecting sufficient information from program participants to accurately recertify eligibility on an annual or interim basis and processing the recertifications, accurately calculating tenant income and rent portions, mailing required letters and notices, maintaining a complete file of all records used to process the recertification, providing excellent customer service to program participants, actively pursue individuals who are nonresponsive, and taking action when program noncompliance is identified. Assistance from Nan McKay is solely for the purposes of ensuring continued compliance with federal timeliness standards in the absence of permanent staff and is not intended to replace or alter the standards set for current staff.
Approve Professional Services Agreement with Nan McKay & Associates for Case Management Services June 18, 2024
The Housing & Community Development Commission recommended this Agreement for approval from the Governing Board on June 5, 2024.
In summary, the Authority seeks approval to enter into an Agreement with Nan McKay for case management services to help maintain a high standard of program administration and avoid any possible interruptions in operations in the event of absent staff under any circumstance.
IMPACT ON BUDGET:
The HCV program is entirely funded by federal funds provided by HUD. Services provided through the Agreement will be funded by administrative fees from HUD for the HCV program and are included in the Housing and Community Development Department’s proposed FY 2024/25 budget.
Respectfully submitted,
Grace Ruiz-Stepter
Executive Director of
Anaheim Housing Authority
Attachment:
1. Professional Services Agreement