AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT
This Amendment (“Amendment No. 2”) is hereby entered into effective April 8, 2025 by and between the City of Lancaster, a Municipal Corporation, in the State of California, and Affordable Housing Solutions & Development of Southern California, LLC (CONTRACTOR) with respect to the amended Exhibit “B” of the Agreement for Services between the parties dated August 8, 2023 (“Agreement”).
The Parties agree as follows:
1. The term of the Agreement is extended to and including August 8, 2027.
2. Exhibit B to the Agreement is hereby deleted in its entirety and replaced with “Term, Payment and Time for Commencement and Completion Clause Update,” attached hereto as Exhibit “A”.
3. All other terms and provisions of the Agreement and subsequent amendments are hereby reaffirmed.
CITY OF LANCASTER CONTRACTOR
Affordable Housing Solutions
Trolis Niebla, City Manager Timothy Sales, Principal
ATTEST:
City Clerk
City Attorney
Department Head
EXHIBIT “A”
EXHIBIT A – TERM AND PAYMENT UPDATE
Term
This Agreement shall become effective and shall be in full force and effect upon the execution of the Agreement by the City and the CONTRACTOR. This Amendment shall continue in full force and effect for a period of one (1) additional years from the effective date of the Agreement (the “Term”), unless the Agreement is sooner terminated in accordance with the Terms and Conditions in the Original Agreement dated May 2, 2022; provided, however, that the City and the CONTRACTOR may mutually agree in writing to extend the Term of this Agreement for one (1) additional two-year period.
Payment
The City of Lancaster shall reimburse the CONTRACTOR for the performance of the work, in an amount not to exceed $165,000.00 per year starting with year three (Aug 2024-Aug 2025), with a total of $605,200.00 for the length of the agreement.
EXHIBIT A
SCOPE OF SERVICES
AND RATES SCHEDULE
Consultant will provide professional affordable housing finance and development advisory services on an as-needed basis in the potential areas of engagement listed below. Services will be billed on a time & materials (T&M) basis against this contract authorization. Scope of Servi ces is illustrative and is to be prioritized based on Client needs and authorization. Consultant will manage work plan approach to each item in coordination with Client.
1. Manage RFP (Request for Proposal) processes and assist in selection of qualified real estate development firms or development-related contractors.
o HNR-1: On-going; services to be specifically covered by this contract include monitoring on- going environmental clean-up of site, selection of new developer, negotiation of a DDA and post- DDA required developer implementation support.
O HNR-3: Work with selected development team to negotiate ENA and DDA(s); finalize planning concepts for site; create federal, state, and local funding subsidy program strategy and schedule; identify other partners and stakeholder groups for participation in infrastructure improvements and community-based programs for the site and the surrounding neighborhoods, and other post- DDA required developer implementation support as necessary.
O
HNR-6, 7 & 9: Release RFP, select qualified developer, negotiate ENA and DDA(s), finalize planning concepts for site, create state and local funding strategy and schedule, and other post- DDA required developer implementation support as necessary.
2. Develop and implement Strategic Plan for marketing and development of LHA & City-owned properties, including:
o Other HNR scattered sites comprised located primarily in central and northeastern Lancaster O Herald Tract sites
O Other sites owned by City / Successor Agency
3. Work with developers of the HNR-sites to prepare applications for the Affordable Housing & Strategic Communities (AHSC) Program, including coordinating major transit improvements with local and regional transit agencies, and securing no-cost Technical Assistance though the state Housing & Community Development (HCD) Department.
4. Provide affordable housing finance and development advisory services in support of LHA- proposed affordable housing developments or affordable housing developments submitted by third- parties seeking financial or other assistance from City.
5. Provide assistance with motel conversions and other permanent supportive housing projects, including working with selected developers on potential funding opportunities for both acquisition/rehab and supportive services.
6. In early 2026, coordinate with City staff on the preparation of a new 5- Year Plan for the PLHA Program that meets state requirements for affordable homeownership, and includes an Activity for a Bolt & Brace Program for low- income homeowners.
7. Keep City staff apprised of local, state and HUD regulatory changes, as well as new resource opportunities.
8. Prepare annual reports and drawdowns (Requests for Funds), as well as assist with monitoring and compliance with state programs and regulations (I.e., PLHA 5-Year Plan, CalHome, etc.).
9. Prepare County, state and private funding applications, strategic plans, etc. as necessary.
10. Work with staff to implement Zoning Ordinance changes listed in Appendix 2 of the City's Prohousing application.
11. Provide other owners representative services in support of the needs of LHA efforts and site development.
Team Member Hourly Rates
Timothy Sales $225
Sue Sturmer $225
Allan D. Kotin $225