Neighborhood Stabilization Program

Request for Qualifications

(RFQ) Property Management Companies

November 4, 2009

Program Goals

• Stabilize neighborhoods - by acquiring foreclosed and abandoned residential properties and returning them to full use

• Heighten impact – by concentrating efforts in small priority areas with high number of foreclosures

• Reduce blight – by focusing on the most difficult properties needing moderate to extensive rehab that the private market will not absorb

• Offer affordable homeownership and rental opportunities

• Promote green construction technology

Funding Relationships

U. S. Department of Housing and Urban Development (HUD, Grantor of NSP dollars)

Los Angeles Housing Department (LAHD)

(Recipient)

Restore Neighborhoods LA (RNLA) (Subrecipient)

Contractual Obligations

• Completion/commitment deadlines (Aug 2010)• 75% of funding must benefit families earning 120% of

area median income (AMI)• 25% of funding must benefit families earning 50% of AMI • Accounting and Operating Systems• Reporting• Wage rates – Projects will be subject to State Wage Rates if the

property is larger than a single family home. Davis Bacon will not apply for single family homes, but will apply on multi unit properties if the contract is for work on 8 or more buildings.

Acquisition Process

NSP FundsLAHD OversightHomeowners

Property Property ManagerManager

LendersLenders

National National CommunityCommunityStabilization Stabilization

TrustTrust

RNLA Contractual Relationships

Construction Managers

EnvironmentalInsp./Termites

AppraisersReal Estate

Brokers

Property Managers

Developers

Contractors/Subs

RNLA

RNLA Acquisition Activities

• Identifies properties in “priority areas” from lender bulk lists received through NCST;

• Coordinates access and inspections with LAHD;

• Works with LAHD to finalize scope and costs;

• Selects properties of interest and negotiates acquisition terms;

• Acquires properties.

Request for QualificationsRNLA is looking for a small number of Property Management firms to secure, maintain and manage: • (50) Vacant single family homes; • (60) 2 - 4 unit properties which may be vacant, partially occupied, or occupied;• (5) 5+ unit properties, vacant or partially occupied.

Actual number of properties may vary

Request for Qualifications

PM Duties and Responsibilities

Upon RNLA’s acquisition of properties:• Secure/install 6’ perimeter fence with gate and

locks;• Secure buildings, repair doors/windows; • Install exterior security lighting;• Remove emergency conditions;• Clear site debris, perform landscape

maintenance as necessary;• Remove toilets;• Maintain security and clean site.

Single Family Homes

• Properties will be vacant;

• PM firm will maintain homes from RNLA purchase until a general contractor takes control of site for rehab;

• Contractor will maintain site during rehab;

• Upon construction completion, PM will resume maintenance until property is sold.

Multi Unit Properties

• Mostly 2 – 4 units, some 5+ unit properties;• Some vacant at acquisition, some occupied;• PM to maintain vacant properties from

acquisition until a developer or general contractor takes control of site for rehab;

• RNLA to sell multi unit properties to developers who will operate as affordable rentals;

Multi Unit Properties (continued)

• PM to manage and maintain occupied or partially occupied properties from RNLA acquisition through rehab process;

• In some cases, developers may operate buildings through rehab process.

Management Duties with Partially Occupied Properties

• Determine lease status with tenants, put missing leases in place;

• Collect rents;

• Maintain property;

• Remove emergency conditions;

• Respond to repair requests;

• Pursue legal actions as necessary.

Monthly Financial Reports

• Maintain a cash management system which reflects monthly operating expenses and income;

• Reports must satisfy RNLA, LAHD and HUD requirements. RNLA to provide minimum requirements.

Relocation

• RNLA will comply with the City of Los Angeles’ Rent Stabilization Ordinance (foreclosure isn’t a lawful reason to evict tenants)

• RNLA will not seek to displace tenants who are in good standing;

• Temporary relocation may be necessary to facilitate rehab;

• RNLA to work with PM firms for smooth relocation process;

• When necessary RNLA may hire relocation consultants.

Criteria for Selection

• General experience;• Experience managing single family homes, 2 – 4

unit properties, 5+ unit properties;• Experience working in target neighborhoods and

priority areas;• Experience working with community

organizations;• Financial capacity• Proposed pricing

Submission Deadline

• Access RFQ and Application on RNLA’s website: www.restoreneighborhoodsla.org

• Complete application form, attach financial information.

• Submit 4 hard copies of package to RNLA by 5:00 PM on November 12, 2009

• Submit questions to: info@restoreneighborhoodsla.org