201 S. Anaheim Blvd.
Second Floor
Anaheim, CA 92805
Tel: (714) 765-4320
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
NMAI LLC FOR INSPECTION SERVICES
ATTACHMENT (Y/N): YES ITEM # 02
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion, approve a Professional Services Agreement with NMAI LLC for inspection services, in an amount not to exceed $1,200,000, 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) administers the Section 8 Housing Choice Voucher (HCV) program in the City of Anaheim on behalf of the U.S. Department of Housing and Urban Development Department (HUD) for over 6,300 households. The HCV program is the federal government's largest program for providing rental subsidies to very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. As an administrator of the HCV program, the Authority operates under an Annual Contributions Contract (ACC) with HUD, which requires that the Authority comply with federal, state, and local policies and regulations.
Federal regulations require that all units occupied by families that receive HCV assistance be inspected and meet specific HUD inspection standards. For decades, the PHA’s were required to inspect following Housing Quality Standards (HQS). Effective October 1, 2024, all rental units assisted by HCV funds will be inspected using the new NSPIRE (National Standards for the Physical Inspection of Real Estate) Standards.
NSPIRE is the new health and safety inspection model for housing owned, insured, or subsidized by HUD. Inspections are required before any assistance is provided through the HCV program and at least biennially for as long as the unit remains on the program.
Additionally, there are instances when inspections must be performed more often to identify potentially harmful conditions or compliance issues to protect the health and safety of program participants.
Approve Professional Services Agreement with NMAI LLC for Inspection Services June 18, 2024
HUD has established accuracy and timeliness standards for inspections that impact the Authority’s annual performance rating. Adherence to these standards is a contractual obligation and essential because they ensure safe living conditions for all participants.
The agency's annual performance rating is directly correlated to the level of funding it receives.
On January 18, 2019, the Authority issued a Request for Proposals (RFP) for inspection services seeking a cost-effective way to keep up with the increased demand for required inspections. The RFP’s winning bid came from NMA Inspections LLC, a housing industry leader providing technical support in all aspects of the HCV program. It should also be noted that the Authority had a prior contract with NMA Inspections LLC for HQS inspection services from July 1, 2014, through June 30, 2019. The current Agreement for inspection services is set to end on June 30, 2024.
Staff issued a new Request for Proposals (RFP) on March 12, 2024, to once again initiate a competitive process and choose a consultant to provide cost-effective inspection services. Working with a consultant to provide inspection services allows the Authority to meet the escalating program administration demand more efficiently and helps achieve several significant benefits. The primary advantage is the ability to shift staff’s focus to other essential tasks related to the recently increased voucher allocations that have expanded the Authority’s HCV program.
The RFP for inspection services closed on April 12, 2024, and the Authority received three responses (NMAI LLC, Section 8 Management, and Tribal Once Architecture and Engineering, 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, NMAI LLC was selected as the winning proposal. Accordingly, staff recommends the approval of a Professional Services Agreement (Agreement) with NMAI LLC in an amount not to exceed $1,200,000 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. NMAI, LLC, is a California limited liability corporation that provides inspection services to housing authorities across the country. Its sister entity Nan McKay, a California corporation, is an industry-leading consulting firm that has specialized in offering professional support and training to PHAs since 1980. While they work in tandem, each entity concentrates on different operations: NMAI on inspections and Nan McKay on case management.
Under the terms of the Agreement, NMAI LLC will assist the Authority by providing inspection services to program participants, when requested, in accordance with all HUD regulations and the Authority’s Administrative Plan. NMAI LLC’s assigned duties include but are not limited to, scheduling and conducting initial/ biennial/24-hour/ special/ and quality control inspections and reinspections throughout Anaheim, adhering to internal electronic filing procedures (which include creating an electronic inspection file for each unit inspected), sending paper and maintaining electronic copies of all inspection notices, named in accordance with the Authority’s specified naming convention, mail notices to owners and tenants indicating the inspection results, provide Approve Professional Services Agreement with NMAI LLC for Inspection Services June 18, 2024
excellent customer service, and taking action when program noncompliance is identified.
The Housing & Community Development Commission recommended this Agreement for approval from the Governing Board on June 5, 2024.
The Authority will retain decision-making authority in all inspections-related work and continue to perform inspections when necessary. The Authority will also continue to conduct quality control reviews of any work NMAI LLC performs.
In summary, the Authority seeks approval to enter into an Agreement with NMAI LLC for inspection services to help the Authority uphold compliance with inspection standards and ensure the safety and habitability of housing units for program participants.
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