Community Development Agency
www.santa-ana.org/community-development
Item # 4
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: Rent Reasonableness Software
AGENDA TITLE
Agreement with Nan McKay & Associates, Inc. for Rent Reasonableness Software for Housing Choice Voucher Program
RECOMMENDED ACTION
Authorize the Executive Director of the Housing Authority to execute an agreement with Nan McKay & Associates, Inc. to provide reasonable rent determination software for the Housing Choice Voucher Program in an amount not to exceed $75,000 for a three-year term beginning July 1, 2024, through June 30, 2027, with an option of two ,one-year extensions (Agreement No. A-2024-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Housing Authority of the City of Santa Ana (SAHA) is required to conduct a reasonable rent comparison whenever a voucher holder moves into a new unit (at initial occupancy) or whenever the owner requests a rent increase. Specifically, no Housing Assistance Payment Contract can be approved until SAHA has determined that the rent for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that a fair rent is paid for each unit rented under the Housing Choice Voucher (HCV) program. The regulations define a reasonable rent as one that does not exceed the rent charged for comparable, unassisted units in the same market area. HUD also requires that owners not charge more for HCV-assisted units than for comparable units on the premises. To comply with this requirement, SAHA contracts for online software to conduct reasonable rent comparisons. SAHA is unable to manage and maintain local data on current rents because of the constant changes in rent in the private market and SAHA does not have the staff capacity to monitor rental listings and pull information continuously to ensure rent comparisons can be completed accurately.
For this purpose, SAHA issued a Request for Proposals (RFP # 24-040A) for Rent Reasonableness Software for Federal Housing Programs. Responses to the RFP were accepted until April 11, 2024. The City received responsive bids from Nan McKay & Associates, Inc., and The Nelrod Company. The bids and cost for services from both vendors were reviewed by three employees from the Housing Authority. The bid from Nan McKay & Associates, for the AffordableHousing.com software is being recommended for approval based upon several factors, including, but not limited to, the
Rent Reasonableness Software
June 4, 2024
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following: 1) the amount of experience of the vendor; 2) AffordableHousing.com is the current software used by SAHA allowing for no downtime associated with new implementation, and no interruption to SAHA operations; 3) local landlords are familiar with listing their vacant units directly on AffordableHousing.com and can list them for free which saves SAHA staff valuable time; and 4) the AffordableHousing.com database is updated daily allowing for the most current data for reasonable rent determinations.
The lower-cost bid from The Nelrod Company for EZ-Reasonable Rent Determination software was not selected because it could not offer the same customer experience and familiarity as AffordableHousing.com for local landlords and staff.
For over 40 years, Nan McKay & Associates (NMA) has been the leader in providing professional services to public housing authorities. Their continued growth in the affordable housing industry is due to their strong client focus as well as their commitment to performance excellence. Their AffordableHousing.com reasonable rent determination software provides an automated rent comparability process that generates accurate HUD-compliant rent reasonableness reports. It is the fastest, easiest way for SAHA to complete rent reasonableness certifications as required by HUD.
The software has completed more than five million rent reasonableness certifications nationwide since 2004. NMA uses a proprietary methodology and comparability database to provide the most accurate and up-to-date market rent assessments. The software eliminates the need for internally maintained landlord inventory lists, saving SAHA time and money by using this software. AffordableHousing.com uses the latest technology and provides landlords and participants links to a private portal complete with photos, mapping, and also storing of all the necessary data for SAHA in the event of a HUD audit. The three-year term of the agreement would begin on July 1, 2024 (Exhibit 1).
FISCAL IMPACT
Funding is available in the proposed FY 2024-25 budget and funding for subsequent fiscal years will be included in the proposed budgets for City Council consideration.
Fiscal
Year
Accounting
Unit – Account
#
Fund Description
Accounting Unit,
Account
Description
Amount
FY 24-25 14018760-
62300
Housing Authority
– Voucher Admin
Contract Services –
Professional $25,000
FY 25-26 14018760-
62300
Housing Authority
– Voucher Admin
Contract Services –
Professional $25,000
FY 26-27 14018760-
62300
Housing Authority
– Voucher Admin
Contract Services –
Professional $25,000
Total Contract Amount $75,000
EXHIBIT(S)
1. Agreement with Nan McKay & Associates, Inc.
Rent Reasonableness Software
June 4, 2024
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Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, Acting City Manager