Agenda Item Wording:
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Award Visalia Housing Loan Portfolio Contract - Authorize the City Manager to sign a contract with AmeriNational Community Services for a 5-year agreement to manage the City of Visalia Housing Loan Portfolio from FY 2025/26 through FY 2029/30, for an amount not to exceed $149,190.
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Deadline for Action: 5/5/2025
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
Margie Perez, Housing Specialist, 713-4460, margie.perez@visalia.city;
Melody Murch, Assistant Finance Director, 713-4379, melody.murch@visalia.city; Renee Nagel, Finance Director, 713-4375, renee.nagel@visalia.city
Department Recommendation:
Staff recommends that Council:
1. Award RFP-24-25-20 to AmeriNational; and
2. Authorize the City Manager or their designee to sign a 5-year contract agreement, for an amount not to exceed $149,190, to manage the City of Visalia Housing Loan Portfolio for the period of July 1, 2025, through June 30, 2030.
Background Discussion:
The City released Request for Proposals (RFP) 24-25-20, requesting a detailed proposal from a company, firm, or corporation with experience in loan portfolio management, underwriting, monitoring, and other loan program services for the City of Visalia’s Affordable Housing Programs for a five-year contract period from FY 2025/26 through FY 2029/30. The RFP remained open from March 7, 2025, through April 9, 2025. A public notice to solicit the RFP was published in the Visalia Times Delta on March 7, 2025, and March 12, 2025. A public notice was also posted on the City’s website, the Central Valley Purchasing System “BidNet”, and on the Kings Tulare Homeless Alliance listserv on March 7, 2025, to over 450 recipients.
The City of Visalia Finance Department and Housing Division administers the City of Visalia Housing Loan Portfolio. The Housing Loan Portfolio consists of low-and moderate-income single family housing loans, including First Time Homebuyer or Owner-Occupied Rehabilitation loans funded by Federal and/or State grants such as Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP) funds through the U.S. Department of Housing and Urban Development (HUD), CalHome funds from California Department of Housing Community Development (HCD), and local Redevelopment Successor Agency Housing (SAH) funds. Additional information regarding the City’s Housing Loan Portfolio can be found in Attachment A - COV Housing Loan Policy. The City of Visalia Housing Loan Portfolio consists of 150 open loans, of which are currently managed by AmeriNat.
Estimated Available Funds
The estimated available funds for loan management services are $27,000 for the first year and then increased by 5% each year for a total of $149,190, during the five-year contract period from FY 2025/26 through FY 2029/30 as shown below in Table 1: Loan Servicing Estimated Available Funds. These funds are included in the adopted housing administration budget and will not require a separate appropriation.
Proposals Received
The City took several steps to solicit RFP 24-25-20 by publishing a public notice in the Visalia Times Delta on March 7, 2025, and March 12, 2025. A public notice was also posted on the City’s website, the Central Valley Purchasing System “BidNet”, and on the Kings Tulare Homeless Alliance listserv on March 7, 2025, to over 450 recipients. Potential organizations were also notified directly via email.
The City received two proposals from AmeriNational Community Services, LLC (AmeriNat), and Self-Help Enterprises (SHE). The evaluation committee reviewed and scored the proposals based upon Amerinat and Self-Help Enterprises’ qualifications and approach. Based upon the overall scores, the evaluation committee recommends to award RFP 24-25-20 to AmeriNat. In addition to their extensive experience, Amerinat provides an online Housing Loan Servicing System allowing access to the City’s loan portfolio information at all times. This system makes reports, monthly payment data, and pay-off quotes conveniently accessible to City staff. Self-Help Enterprises proposed the use of a customized Microsoft Access database which is not currently capable of providing online access to loan servicing data. The difference in the capabilities of each proposers respective software is the main reason for the selection of Amerinat by the evaluation committee. The full Amerinat proposal can be found as Attachment B: AmeriNat Proposal to this item.
Contract Agreement
The five-year contract period from FY 2025/26 through FY 2029/30 will include all 150 open housing loans currently managed by AmeriNat, as well as any new First Time Homebuyer and Owner-Occupied Rehabilitation housing loans provided by City housing programs in the future. Staff acknowledges that minor changes to the contract could occur during final negotiations with the concurrence of the City Manager and City Attorney.
AmeriNat
AmeriNat has been managing the City of Visalia Housing Loan Portfolio since 2001. AmeriNat currently oversees Visalia’s portfolio of 150 loans with a current value of approximately $4 Million Dollars. AmeriNational provides these same services to over 250 clients, such as, City of Bakersfield, Fresno County, Los Angeles HCD for LA, City of San Jose, City of Stockton, City of Sacramento, City of Richmond, and City of Santa Ana. AmeriNat specializes in services for local government agencies who utilize CDBG, HOME, NSP, CalHome, and SAH Federal and State funded programs.
AmeriNat offers experienced loan processing, underwriting services, monthly loan payment services, loan modifications, income re-certifications, and loan documentation preparation. In accordance with the loan document requests, AmeriNat shall prepare and forward the following documents, for the City’s execution: Deeds of Trust; Promissory Notes; Truth in Lending Disclosure Statements; Requests for Notice of Default and Sales; Notices of Right to Cancel; Control Instructions; Declarations of Covenant, Conditions, and Restrictions; and other documents as agreed to with the City.
AmeriNat will provide loan servicing for amortized and deferred loans. AmeriNat loan servicing will include collection and remittance of payments, payment of property taxes, insurance monitoring, property condition profiles, and annual residency verifications. AmeriNat will also provide loss mitigation services to minimize delinquencies. Upon the City’s request, AmeriNat may assist with requests for subordination, loan assumptions, and short sales. AmeriNat will also provide reports designed to meet the City’s objectives and funding source requirements.
Fiscal Impact:
Contract payments (not to exceed $149,190, over 5 years) will use administration funds from the City’s Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and Successor Agency Housing (SAH) fund. These funds are appropriated as part of the housing budget and no separate appropriation is necessary for the execution of this contract.
Prior Council Action: April 18, 2022 - Council awarded RFP-21-22-26 to AmeriNat for a 3-year contract agreement to manage the City’s Housing Loan Portfolio.
Other: None
Alternatives: None
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to:
1) Award RFP-24-25-20 to AmeriNat; and
2) Authorize the City Manager or their designee to negotiate and execute a 5-year contract agreement, not to exceed $149,190, to manage the City of Visalia Housing Loan Portfolio for the period of July 1, 2025, through June 30, 2030.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
Attachment A - COV Housing Loan Policy
Attachment B - AmeriNat’s Proposal
Attachment C - Draft Contract Agreement
Attachment D - AmeriNat Ownership Disclosure Statement