05 Attachment 1 - Draft Agreement with Hello Housing including Exhibit A1
ATTACHMENT 1
AGREEMENT FOR CONSULTANT SERVICES FOR ADMINISTRATOR OF THE
TOWN’S BELOW MARKET PRICE AFFORDABLE HOUSING PROGRAM
THIS AGREEMENT is dated for identification December 1, 2020, and is made by and
between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and Hello Housing,
(“Consultant”), whose address is 1242 Market Street, 3rd Floor, San Francisco, CA 94102. This
Agreement is made with reference to the following facts. This contract will remain in effect from
December 1, 2020 to November 30, 2025.
I. RECITALS
1.1 The Town desires to engage Consultant to administer the Town’s Below Market Price
Affordable Housing Program.
1.2 Consultant represents and affirms that it is qualified and willing to perform the desired work
pursuant to this Agreement.
1.3 Consultant represents and affirms that it is qualified and willing to perform the desired work
pursuant to this Agreement.
1.4 Consultant warrants it possesses the distinct professional skills, qualifications, experience,
and resources necessary to timely perform the services described in this Agreement.
Consultant acknowledges that the Town has relied upon these warranties to retain
Consultant.
II. AGREEMENTS
2.1 Scope of Services. Consultant shall provide services as described in that certain Proposal for
Services sent to the Town on August 21, 2020, which is hereby incorporated by reference and
attached as Exhibit A.
2.2 Term and Time of Performance. The services of Consultant are fixed for a five-year period
that will commence upon the execution of the contract. At the end of this period, should the
Town not renew the contract, the contract shall automatically expire. The individual time of
performance schedule for each project referred to the Consultant is required to be performed
as outlined in the scope of services section of this Agreement.
2.3 Compliance with Laws. Consultant shall comply with all applicable laws, codes, ordinances,
and regulations of governing federal, state, and local laws. Consultant represents and
warrants to Town that it has all licenses, permits, qualifications, and approvals of whatsoever
nature which are legally required for Consultant to practice its profession. Consultant shall
maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of the
Town of Los Gatos.
2.4 Sole Responsibility. Consultant shall be responsible for employing or engaging all persons
necessary to perform the services under this Agreement.
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2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all
reports and supportive data prepared by Consultant under this Agreement are the Town’s
property and shall be delivered to the Town upon the completion of Consultant's services or
at the Town's written request. All reports, information, data, and exhibits prepared or
assembled by Consultant in connection with the performance of its services pursuant to this
Agreement are confidential until released by the Town to the public, and Consultant shall not
make any of the these documents or information available to any individual or organization
not employed by Consultant or the Town without the written consent of the Town before such
release. The Town acknowledges that the reports to be prepared by Consultant pursuant to
this Agreement are for the purpose of evaluating a defined project, and the Town's use of the
information contained in the reports prepared by Consultant in connection with other projects
shall be solely at the Town's risk, unless Consultant expressly consents to such use in writing.
The Town further agrees that it will not appropriate any methodology or technique of
Consultant which is and has been confirmed in writing by Consultant to be a trade secret of
Consultant.
2.6 Compensation. Compensation for Consultant's professional services shall be an estimated
initial fixed annual base cost of approximately $96,000 and increasing annually up to
approximately $125,000, with possible optional increases for transactional costs such as sales
and re-sales of homes. Payment shall be based upon Town approval of each task.
2.7 Billing. Billing shall be monthly by invoice within thirty (30) days of the rendering of the
service and shall be accompanied by a detailed explanation of the work performed, the
relevant property address (if applicable) and at what rate.
Payment shall be net thirty (30) days. All invoices and statements to the Town shall be
addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
2.8 Availability of Records. Consultant shall maintain the records supporting this billing for not
less than three years following completion of the work under this Agreement. Consultant
shall make these records available to authorized personnel of the Town at Consultant's offices
during business hours upon written request of the Town.
2.9 Assignability and Subcontracting. The services to be performed under this Agreement are
unique and personal to Consultant. No portion of these services shall be assigned or
subcontracted without the written consent of the Town.
2.10 Independent Contractor. It is understood that Consultant, in the performance of the work and
services agreed to be performed, shall act as and be an independent contractor and not an
agent or employee of the Town. As an independent contractor he/she shall not obtain any
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rights to retirement benefits or other benefits which accrue to Town employee(s). With prior
written consent, Consultant may perform some obligations under this Agreement by
subcontracting, but may not delegate ultimate responsibility for performance or assign or
transfer interests under this Agreement. Consultant agrees to testify in any litigation brought
regarding the subject of the work to be performed under this Agreement. Consultant shall be
compensated for its costs and expenses in preparing for, traveling to, and testifying in such
matters at its then current hourly rates of compensation, unless such litigation is brought by
Consultant or is based on allegations of Consultant's negligent performance or wrongdoing.
2.11 Conflict of Interest. Consultant understands that its professional responsibilities are solely to
the Town. Consultant has no and shall not obtain any holding or interest within the Town of
Los Gatos. Consultant has no business holdings or agreements with any individual member
of the staff or management of the Town or its representatives nor shall it enter into any such
holdings or agreements. In addition, Consultant warrants that it does not presently and shall
not acquire any direct or indirect interest adverse to those of the Town in the subject of this
Agreement, and it shall immediately disassociate itself from such an interest, should it
discover it has done so and shall, at the Town's sole discretion, divest itself of such interest.
Consultant shall not knowingly and shall take reasonable steps to ensure that it does not
employ a person having such an interest in this performance of this Agreement. If after
employment of a person, Consultant discovers it has employed a person with a direct or
indirect interest that would conflict with its performance of this Agreement, Consultant shall
promptly notify Town of this employment relationship, and shall, at the Town's sole
discretion, sever any such employment relationship.
2.12 Equal Employment Opportunity. Consultant warrants that it is an equal opportunity employer
and shall comply with applicable regulations governing equal employment opportunity.
Neither Consultant nor its subcontractors do and neither shall discriminate against persons
employed or seeking employment with them on the basis of age, sex, color, race, marital
status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or
medical condition, unless based upon a bona fide occupational qualification pursuant to the
California Fair Employment and Housing Act.
III. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insurance:
i. Consultant agrees to have and maintain, for the duration of the contract,
General Liability insurance policies insuring him/her and his/her firm to an
amount not less than: one million dollars ($1,000,000) combined single limit
per occurrence for bodily injury, personal injury, and property damage.
ii. Consultant agrees to have and maintain for the duration of the contract, an
Automobile Liability insurance policy ensuring him/her and his/her staff to an
amount not less than: one million dollars ($1,000,000) combined single limit
per accident for bodily injury, personal injury, and property damage.
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iii. Consultant shall provide to the Town all certificates of insurance, with original
endorsements effecting coverage. Consultant agrees that all certificates and
endorsements are to be received and approved by the Town before work
commences.
iv. Consultant agrees to have and maintain, for the duration of the contract,
professional liability insurance in amounts not less than: one million dollars
($1,000,000) which is sufficient to insure Consultant for professional errors or
omissions in the performance of the particular scope of work under this
agreement.
General Liability:
i. The Town, its officers, officials, employees, and volunteers are to be covered
as insured as respects: liability arising out of activities performed by or on
behalf of Consultant; products and completed operations of Consultant;
premises owned or used by Consultant. This requirement does not apply to
the professional liability insurance required for professional errors and
omissions.
ii. Consultant's insurance coverage shall be primary insurance as respects the
Town, its officers, officials, employees, and volunteers. Any insurance or self-
insurances maintained by the Town, its officers, officials, employees, or
volunteers shall be excess of Consultant's insurance and shall not contribute
with it.
iii. Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to the Town, its officers, officials, employees, or
volunteers.
iv. The Consultant's insurance shall apply separately to each insured against
whom a claim is made, or suit is brought, except with respect to the limits of
the insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that
coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except
after thirty (30) days prior written notice by certified mail, return receipt requested, has been
given to the Town. Current certification of such insurance shall be kept on file at all times
during the term of this agreement with the Town Clerk.
3.3 Workers’ Compensation. In addition to these policies, Consultant shall have and maintain
Workers' Compensation insurance as required by California law and shall provide evidence
of such policy to the Town before beginning services under this Agreement. Further,
Consultant shall ensure that all subcontractors employed by Consultant provide the required
Workers' Compensation insurance for their respective employees.
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3.4 Indemnification. The Consultant shall save, keep, hold harmless, and indemnify and defend
the Town its officers, officials, employees, and volunteers from all damages, liabilities,
penalties, costs, or expenses in law or equity that may at any time arise or be set up because
of damages to property or personal injury received by reason of, or in the course of performing
work which may be occasioned by a willful or negligent act or omissions of Consultant, or
any of Consultant's officers, employees, or agents or any subconsultant.
IV. GENERAL TERMS
4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall
operate as a waiver of any other right or remedy that either party may have hereunder, nor
does waiver of a breach or default under this Agreement constitute a continuing waiver of a
subsequent breach of the same or any other provision of this Agreement.
4.2 Governing Law. This Agreement, regardless of where executed, shall be governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior Court of the County of Santa Clara.
4.3 Termination of Agreement. The Town and the Consultant shall have the right to terminate
this agreement with or without cause by giving not less than fifteen days (15) written notice
of termination. In the event of termination, Consultant shall deliver to the Town all plans,
files, documents, and reports, performed to date by Consultant. In the event of such
termination, Town shall pay Consultant an amount that bears the same ratio to the maximum
contract price as the work delivered to the Town bears to completed services contemplated
under this Agreement, unless such termination is made for cause, in which event,
compensation, if any, shall be adjusted in light of the particular facts and circumstances
involved in such termination.
4.4 Amendment. No modification, waiver, mutual termination, or amendment of this Agreement
is effective unless made in writing and signed by the Town and Consultant.
4.5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be
entitled to reasonable attorney's fees, including costs of appeal.
4.6 Notices. Any notice required to be given shall be deemed to be duly and properly given if
mailed postage prepaid, and addressed to:
Town of Los Gatos Hello Housing
Attn: Town Clerk Attn: Matt Warner
110 E. Main Street 1242 Market Street, 3rd Floor
Los Gatos, CA 95030 San Francisco, CA 94102
or personally delivered to Consultant to such address or such other address as Consultant
designates in writing to the Town.
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4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the
terms and conditions of this Agreement in respect of the Products or Services and any
attachments to this Agreement, then the terms and conditions of this Agreement shall prevail
over attachments or other writings.
4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and
exclusive statement of the Agreement between the Town and Consultant. No terms,
conditions, understandings, or agreements purporting to modify or vary this Agreement,
unless hereafter made in writing and signed by the party to be bound, shall be binding on
either party.
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement.
Town of Los Gatos by:
Laurel Prevetti, Town Manager
Recommended by:
Joel Paulson, Community Development
Director
Approved as to Form:
Robert Schultz, Town Attorney
Consultant by:
Matt Warner, Program Director
Hello Housing
Town of Los Gatos
Request for Proposals – Below Market Price Program Services
August 21, 2020
Table of Contents
A. Entity
1. Consultant Identification
2. Intended Role of Staff
B. Experience and History
1. Programs Administered and Firm’s Role
2. Program Successes and Challenges
3. Program Costs
4. References for Program
C. Proposal
1. Application (Exhibit A)
2. Narrative of Proposal
3. Implementation Plan
4. Schedule of Fees
August 21, 2020
Joel Paulson, Community Development Director
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
RE: RFP for Below Market Price Program Services
Dear Joel:
On behalf of Hello Housing, I am pleased to submit the enclosed response to the Town of Los Gatos’ Request
for Proposals. Our staff has significant relevant experience, established best practices, and a wealth of
knowledge regarding the unique questions and challenges that arise each and every day when managing
BMP/BMR programs. We would be thrilled to have the opportunity to continue to support the Town of Los
Gatos in achieving its affordable housing goals and objectives.
As is further described in the enclosed response, Hello Housing has significant experience with administering
Los Gatos’ BMP programs as well as the following:
• Management of BMP homeownership and rental programs;
• Program design, program evaluation and policy recommendations;
• Compliance monitoring of deed-restricted BMR portfolios;
• Management of the marketing and sale of BMR homes;
• Financial underwriting of affordable housing program applicants;
• BMR document preparation and escrow coordination;
• Refinances, payoffs and reconveyance;
• Foreclosure prevention and BMR preservation;
• Down Payment Assistance administration;
• Lender and realtor education and engagement; and
• Clear, timely and dependable communications with our cities and our BMR participants.
All information provided in this proposal are true and accurate. Mardie Oakes, President of Hello Housing is
authorized to submit proposals on behalf of Hello Housing.
Many thanks for your consideration. Please feel free to contact me at (415) 828-4388 with any questions.
Sincerely,
Mardie Oakes
President
A. Entity
1. Consultant Identification
Hello Housing is a 501(c)3 corporation with a traditional organizational structure and fourteen (14)
employees. The organization is led by a small Board of Directors with a variety of skills and
perspectives to offer the organization. The President reports to the Board and the staff report to the
President.
Established in 2005, we hit the ground running as the master developer of the Bay Area Housing
Project (BAHP), an innovative $100 million public-private partnership that created community-
integrated, permanent, scattered-site housing for people with developmental disabilities leaving
Agnews Developmental Center, a large state-run institution slated for closure. Based on our unique
experience developing a scattered-site acquisition/rehab program for single-family homes, we were
perfectly positioned to address the foreclosure crisis in Alameda County. In 2009 and 2010, we were
competitively awarded nearly $10 million in HUD’s Neighborhood Stabilization Program (NSP) funds.
By leveraging these funds with a $2.7 million revolving line of credit from Clearinghouse CDFI, a
mission-driven private lender, we are made a tangible difference in stabilizing some of the most
affected neighborhoods throughout the East Bay. In 2012, Hello Housing launched Hello
Stewardship, starting with a small homeownership portfolio assumed from HomeBricks, a
homeownership affiliate of BRIDGE Housing. Hello Stewardship has steadily grown since 2012 and
is the department within Hello Housing that will deliver Affordable Housing Program Assistance
services to Los Gatos, if selected.
Since the launch of Hello Stewardship in 2012, Hello Housing has grown the number of BMR for-sale
homes under its management from 158 to 1,240, and the number of BMR rental units under
management from four to 1,384. Hello Housing is currently averaging over 45 sales/resales each year
and in 2020 is projecting to underwrite and originate 70+ first time homebuyer loans through the
administration of Alameda County’s AC Boost program. The menu of services that Hello Stewardship
offers has grown as well, offering services to developers with inclusionary housing requirements and
providing affordable housing program design services to both private and public entities. The
estimated total market value of the BMR ownership and loan portfolio that the organization is
responsible for stewarding now exceeds $600 million.
In April 2016, Hello Housing became an affiliate of MidPen Housing, a nationally-respected nonprofit
housing organization serving the 9-county Bay Area, providing Hello Housing with access to best-in-
class operational support that far exceeds what organizations of Hello Housing’s size can afford on
their own. An additional benefit of the affiliation is MidPen has committed to investing in growth of the
organization, by providing resources for Hello Housing to hire staff ahead of being awarded new
contracts. The affiliation is formed by way of directors from the MidPen Housing board having majority
representation on the Hello Housing board.
Hello Housing has an active Board of Directors, consisting of affordable housing experts who regularly
provide direction, support and expertise to the team. Board President Matt Franklin is CEO of MidPen
Housing. Matt joined MidPen Housing in 2008 from an appointed post as Executive Director of the
San Francisco’s Mayor’s Office of Housing where he coordinated all City housing policy and oversaw
the financing for 3,500 new affordable rental units as well as the compliance monitoring for 24,000
existing BMR units. Matt brings valuable insight to the Hello Housing staff regarding a city’s particular
interests and concerns when managing BMR programs. Other board members are: Rick Jacobus,
a national expert in inclusionary housing and affordable homeownership; Tom Casey, a residential
developer and former VP of BRIDGE Housing; Elisa Jagerson, CEO Emeritus of FutureBrand Speck;
and Dan Seubert, a veteran real estate attorney.
Hello Housing is comprised of a unique team of experts with backgrounds in affordable housing
program management, program design, finance, development, construction and services. It is critical
for our organization to possess a deep understanding of these different industries, each with their
own language, cultures and norms, in order to bring them together successfully into a single program
or project.
The key staff committed to the day-to-day management of the Town of Los Gatos’ BMP Program
will be:
• Program Director, Matt Warner - matt@hellohousing.org, (415) 689-7746
• Associate Director of Operations, Sarah Duval – sduval@hellohousing.org, (415) 967-7581
• Program Manager, Janina Navarro – janina@hellohousing.org, (415) 564-1129
• Compliance Manager, Nadia Stanizai – nadia@hellohousing.org, (415) 989-1472
• Program Associate, Mollie Rayer-Haselkorn – mollie@hellohousing.org, (415) 481-3528
2. Intended Role of Staff
The staff dedicated to Los Gatos program are Matt Warner, Sarah Duval, Janina Navarro, Nadia
Stanizai and Mollie Rayner-Haselkorn. Their intended roles are as follows:
• Program Director, Matt Warner, will provide program oversight and make programmatic
improvement recommendations.
• Associate Director of Operations, Sarah Duval, will provide programmatic oversight, training
of staff, track any BMP defaults, assist the town in establishing new sales price of units and
provide support to the Program and Compliance Manager as needed.
• Program Manager, Janina Navarro, will be the primary point of contact and manager of the
contract. Janina will be responsible for managing all aspects of the ownership program,
including regularly updating marketing materials and the website, management of sales,
processing of subordination requests, management of ownership compliance monitoring,
eligibility screening, processing of capital improvement requests and training.
• Compliance Manager, Nadia Stanizai, will serve as the responsible party for all BMP rental
activities, including monitoring, program compliance, communicating with property
management and tenants and verification of tenant income. backup to the primary Program
Manager during times of high transaction volume or when the primary Program Manager is
out of the office.
• Program Associate, Mollie Rayner-Haselkorn, will be the initial point of contact for program
inquiries from prospective applicants, assist in compliance monitoring, program eligibility
review and all large data and mailing projects.
Please see below for individual resumes.
Mardie Oakes, President
In her role as founding President for Hello Housing, Mardie:
• Is responsible for all facets of the organization’s performance;
• Oversees the Hello Stewardship, Hello R&D and Hello Development teams;
• Oversees all financing relationships ensuring funding requirements and needs are being
met;
• Leads new business development for the organization;
• Represents the organization in public forums and in the media;
• Led the successful affiliation with MidPen Housing, including the transition of accounting,
HR, legal and insurance functions to MidPen’s administrative team and the board
transition;
• Negotiated and closed $10 million in financing for HUD Neighborhood Stabilization
Program (NSP) foreclosure recovery activities to support $30 million in for-sale
redevelopment;
• Led the creation of a shared regional marketing platform for affordable homes
(www.homehub.org);
• Negotiated and closed a $2.7 million line of credit from Clearinghouse CDFI to leverage
NSP funding, more than doubling the number of homes made possible by NSP;
• Negotiated and closed $1.5 million in permanent debt for supportive housing at peak of
the financial crisis;
• Negotiated and closed $120 million in acquisition and construction financing with Bank
of America;
• Negotiated and closed $105 million in permanent financing from CalHFA;
• Secured $20 million in acquisition/bridge financing with The Mechanics Bank;
• Managed a $100 million tri-party Housing Development Agreement; and
• Purchased 60 infill properties in 19 Bay Area jurisdictions for renovation or new
construction to serve 240 individuals with developmental disabilities leaving Agnews
Developmental Center.
Mardie, a 2006 Echoing Green Fellow, combines experience in architecture, development and
finance with a passion for making the places people live places to thrive. After earning her architecture
degree from Rice University, she spent five years developing affordable housing and commercial
buildings to revitalize the Fifth Ward, Houston’s lowest income neighborhood (85% African American,
10% Latino). She was the project manager for the Maxwell award-winning Lyon’s Village, a 24-unit,
10,000 SF retail mixed-use tax credit project focused on low- and extremely low-income families. Her
responsibilities included project management from community visioning through stabilized
occupancy. She assembled LIHTC, FHLB, LISC, and lender financing, performed all related due
diligence and compliance, worked with city officials to obtain political support and project approvals,
oversaw design, and served as General Contractor overseeing 30+ subcontractors, many of whom
were local to the Fifth Ward community. She also managed the land acquisition department for single-
family home development which involved: identifying target lots for development, contacting owners
through title search or neighbor inquiry, working with sellers and title companies to obtain clear title,
and managing the loan closing process. Mardie also managed corporate partnerships, including the
Houston Rockets who had players volunteer 2-3 times per year at new construction sites alongside
the family purchasing the home.
During that time, she co-created 16 Houses: Owning a House in the City in partnership with Rice
School of Architecture and DiverseWorks Artspace, a leading interdisciplinary arts organization. The
project invited local and national architects to design innovative and affordable single-family homes
for residents of the Fifth Ward, which resulted in an exhibition, book and construction of several
demonstration homes. Through this project, Mardie recognized the need for creative financing
solutions – and for building bridges across disciplines - to make cutting-edge projects a reality. This
led her to Harvard Business School where she was awarded a Harvard Service Fellowship at Boston
Community Capital, one of the nation’s leading community development financial institutions where
she analyzed new business opportunities for BCC; analyzed the social impact of BCC’s loan and
venture funds; designed and implemented loan fund systems to support organizational growth;
provided technical assistance to Boston Community Loan Fund borrowers; researched exit strategies
for community development venture capital investments and analyzed secondary markets as a
solution to CDFI liquidity constraints.
Mardie moved to the Bay Area in 2003 to be Director of Real Estate Lending for Opportunity Fund
where she invested $20 million of debt into affordable housing and community facilities throughout
Silicon Valley. In 2005, after providing the predevelopment financing for a pilot to the Agnews Closure
in Cupertino, she co-founded Hello Housing with previous Board President Chuck Gardner to serve
as the master developer for the Agnews closure.
Mardie has a Bachelors of Architecture from Rice University and an MBA from Harvard Business
School.
Jennifer Duffy, Vice President
In her role as Vice President, Jennifer:
• Works in collaboration with the President, the Director of Business Development and
Program Manager for Hello R&D to design, finance and implement new housing programs;
• Leads all property acquisition and disposition efforts on behalf of the organization;
• Oversees the development and construction management teams;
• Administers the City of Oakland's Abandoned and Vacant Lot Initiative through the City's
Community Buying Program;
• Represents the organization and city partners in public forums;
• Oversees the partnerships with jurisdictions, municipalities, lenders, project brokers,
homebuyer counseling agencies and peer developer partners, enabling multiple parties to
work efficiently and collaboratively to achieve critical project milestones;
• Holds Hello Housing’s Broker License and MLO endorsement ensuring compliance with
all applicable Federal, State and Local laws pertaining to Hello’s Real Estate activities;
• Manages all loan servicing activities;
• Led the acquisition and development of over 140+ homes for working families across the
Bay Area;
• Managed all development communications among three Bay Area Regional Centers, the
State Department of Developmental Services, the State Department of Social Services and
the administrative team at Agnews Developmental Center, during the mandated closure of
a state-run institution; and
• Facilitated communication and training with the State Fire Marshal and 19 local jurisdictions
regarding legislation which created a new Community Care Licensing category (Senate Bill
962) for Community Care Facilities.
Jennifer is responsible for transforming great ideas into sustainable programs that serve the mission
of Hello Housing. Designing and implementing new programs is a strength and a passion that Jennifer
brings to her work. She has helped Bay Area cities and counties craft new approaches to maintain
and protect existing affordable housing stock during the economic downturn while also designing
anti-blight and anti-displacement strategies through innovated public-private partnerships with
mission-oriented companies. Jennifer brings 20+ years of experience pioneering new models of
housing and service delivery for individuals and working families across the socioeconomic
spectrum.
Prior to her work at Hello Housing, Jennifer worked as a leader in the field of service delivery at
Community Living Opportunities, Inc. (CLO), a nationally recognized private service corporation,
based in Eastern Kansas and affiliated with the University of Kansas. During Jennifer’s tenure with
CLO, she supervised all property expansion projects for the residential program that supported over
200 adults. Through her work with community contractors, she expanded housing opportunities for
this population two-fold throughout the State of Kansas. Jennifer has helped to advocate and design
cutting edge service technologies to aid in the support and independence of adults and children with
significant supervision needs including the implementation of a new Camera Monitoring Surveillance
system currently being utilized by service providers in Kansas, Tennessee and New York to help
individuals live more independently in less restrictive community environments.
Jennifer is currently serving as an Advisor of the Board of Directors for California Community
Opportunities, a well-recognized non-profit residential service corporation, which deploys innovative
service models for children and adults with developmental disabilities so that they can achieve
personally satisfying and fulfilling lifestyles in their communities. Jennifer earned a Bachelor of
Science degree in Education and a Masters of Social Welfare from the University of Kansas and is a
licensed Real Estate Broker in the State of California.
Matt Warner, Program Director
In his role as Program Director of Hello Stewardship, Matt:
• Provides leadership and education regarding the importance of professional stewardship
of BMR and DPA programs;
• Provides training, oversight and direction of the Hello Stewardship team, which
administers eight municipalities’ BMR and DPA programs, which include 1,010 BMR
homes and 784 affordable rental units;
• Consults with local jurisdictions to provide technical assistance on affordable housing
program design;
• Oversees the marketing and sale of inclusionary BMR units for market-rate developers,
including marketing plan creation, launching online campaigns, hosting program
workshops, and lottery drawings;
• Serves as the relationship manager for all contracts served;
• Provides oversight of the pricing, marketing and sale of BMR re-sales for multiple
municipalities;
• Performs BMR buy-back feasibility assessments for jurisdictions facing potential loss of
units due to foreclosure; and
• Works directly with the President to ensure the program is sufficiently resourced as
additional contracts are secured.
Matt has ten years of experience administering various affordable housing and loan programs. Matt
proved himself as a Program Manager with Hello Housing for three years before being promoted to
Program Director in 2015. As Program Manager, he effectively managed all aspects of BMR and DPA
administration of a portfolio of 600 homes and loans, managed a BMR buy-back program that
successfully generated significant recurring program revenue for a City client, as well as preserved
BMR units. Matt also worked closely with the President to design and launch an on-line BMR
application process for new for-sale inclusionary BMR homes in high-demand jurisdictions.
Prior to joining Hello Housing, Matt served as a Certification Specialist for HomeBricks, where he
gained three years of experience in BMR housing administration, originating DPA loans, performing
marketing and buyer eligibility for NSP programs and management of municipalities’ portfolios of
affordable homes. His responsibilities included determining applicant eligibility, underwriting DPA
loans, coordinating escrow and creating sales projections for two BMR developments in San
Francisco, totaling over 250 units. In addition, he was responsible for the annual compliance and
reporting for two East Bay municipalities’ portfolios of BMR and DPA loans. Matt also managed the
marketing and sale process for several large developers’ inclusionary BMR units, in the Cities of San
Francisco and Dublin, and NSP developers in Alameda and Contra Costa Counties.
Matt earned a Bachelors Degree in Economics from San Diego State University.
Sarah Duval, Associate Director of Operations
In her current role as Associate Director of Operations, Sarah:
• Provides proactive management of the City of Pleasanton’s portfolio of Below Market Rate
(BMR) homes and Down Payment Assistance (DPA) loans which includes relationship
management with City staff, marketing affordable homes for sale, calculating affordable
prices; assessing applicants for eligibility; coordinating with lenders and title companies;
performing annual compliance monitoring; and helping aspiring homebuyers and existing
homeowners navigate the program;
• Pinch hits for Program Managers to host workshops and represent Hello Housing at housing-
related events and trainings;
• Regularly assesses and improves training materials for new and existing Stewardship staff to
ensure consistent understanding of affordable homeownership, Stewardship best practices
and the Hello Housing “way of working”; and
• Analyzes existing workflows and processes to identify areas for alignment and greater
efficiency;
Prior to serving as Associate Director of Operations, Sarah worked for two years as Program Manager
at Hello Housing, managing the Town of Los Gatos’ and Livermore’s BMR programs.
Prior to joining Hello Housing, Sarah served as Compliance Manager at Eden Housing for several
years. At Eden, Sarah co-managed the organization’s rental compliance team where she developed
policies, procedures, and training materials to ensure staff followed all governmental and
programmatic regulations. In addition, Sarah oversaw and coordinated lease-ups, implemented fair
housing policies and responded to Yardi software and compliance questions from staff.
Prior to her work at Eden Housing, Sarah served as a Compliance Administrator at BRIDGE Housing
for several years where she supported the Senior Leadership Team in maintaining financial and
program compliance. Sarah started her career in non-profit housing in 2007 at a residential SRO
hotel in San Francisco’s Tenderloin neighborhood.
In addition to working in non-profit affordable housing, her passion for social justice has led her to
several outside projects along the way, which have included collaborating on the American Civil
Liberties Union of Northern California’s miACLU campaign, where she worked toward appealing anti-
immigrant laws at the state level, as well as serving on the board of a local bay area women’s
networking organization, Good Ol’ Girls.
Sarah earned a Bachelor of Arts degree in Sociology from University of California at Santa Cruz.
Janina Navarro, Program Manager
In her role as Program Manager for Hello Housing, Janina:
• Manages the resales of BMR homes on behalf of local jurisdictions, including preparing
marketing material, applicant selection and underwriting;
• Holds educational workshops in English and Spanish for current and prospective buyers
to educate new and existing program guidelines and processes;
• Manages BMR ownership compliance monitoring efforts;
• Implements new processes and procedures to meet jurisdictions goals;
• Processes refinance and subordination requests for BMR ownership units in accordance
with program guidelines;
• Serves as the primary contact for all Realtors, lenders and homeowners to educate them
about the sales and lending process, as well the deed restrictions on the BMR homes in
the program managed;
• Assists in the marketing and sale of inclusionary BMR homes on behalf of market-rate
developers.
Janina brings over five years of diverse social services and housing management
experience to Hello Housing. Prior to joining Hello Housing, Janina served as a Project Manager for
Glide Community Housing and as a Resident Services Coordinator for Mission Housing Development
Corporation.
Nadia Stanizai, Compliance Manager
In her role as Compliance Manager, Nadia:
• Provides written and verbal correspondence with Below Market Rate rental program
participants and potential BMR tenants;
• Provides training to property managers on BMR process and requirements;
• Audits lease terms of BMR tenants to ensure program compliance;
• Performs rental lease up certifications and annual re-certifications;
• Assists with compliance monitoring; and
• Provides support to the Program Manager with application underwriting.
Prior to working for Hello Housing, Nadia worked directly for the Director of Real Estate for Hamilton
Families, a Bay Area affordable housing non-profit, where she gained knowledge on tenant and
landlord rights, property law and database management.
Nadia earned a Bachelor of Arts degree in English Literature from CSU East Bay.
Mollie Rayner-Haselkorn, Program Associate
In her role as Program Associate of Hello Stewardship, Mollie:
• Provides written and verbal correspondence with Below Market Rate program participants
and potential BMR applicants;
• Assists homeowners by referring them to resources to assist in refinancing and reselling their
BMR homes;
• Assists with Hello Housing’s large database projects;
• Provides support to the Program Manager and Compliance Manager with application
underwriting; and
• Provides office management.
Prior to joining Hello Housing, Mollie worked as a Community Outreach Assistant at the Cancer
Research Institute. While pursuing her Master’s degree Mollie worked closely with the non-profit
African Community Education to help provide social and educational services to refugee and
immigrant youth. She also served as an AmeriCorps member for City Year Louisiana before attending
college.
Mollie earned her Bachelor of Arts degree in Geography, as well as Master’s degree in Community
Development and Planning from Clark University.
B. Experience and History
1. Programs Administered and Firm’s Role
Since Hello Stewardship was founded in 2012, it has steadily increased contracts under management
with scope of services to include BMR/BMP program management. A general description of each of
these programs are detailed below:
City of Alameda
Administration of Below Market Rate and Down Payment Assistance Program
Scope: Managing the City’s BMR portfolio (121 homes) and monitoring the City’s Down Payment
Assistance loans (20 loans). Hello Housing facilitates comprehensive marketing to underserved
populations for the sale of all BMR homes. Hello Housing establishes unit pricing, provides listing
agent coordination, and performs application underwriting to the program guidelines. Hello Housing
reviews all first lenders’ financing terms to ensure the loan meets program requirements and prepares
BMR agreements for City execution.
City of Concord
Administration of the City’s First Time Homebuyer Loan and Below Market Rate Programs
Scope: Managing the City’s BMR portfolio (19 homes) and First Time Homebuyer Program (42 loans).
Hello Housing processes and underwrites applications, creates closing documents, coordinates
escrow and performs ongoing monitoring of the City’s portfolio of FTHB loans and BMR homes. In
addition, Hello Housing facilitates the resale of all BMR homes.
City of Cupertino
Administration of City’s Below Market Rate Homeownership and Rental Programs
Scope: Managing the City’s BMR portfolio of ownership and rental housing (121 ownership and 138
rental homes). Hello Housing processes and underwrites the BMR applications, creates closing
documents, coordinates escrow, and performs ongoing compliance monitoring activities. In
addition, Hello Housing manages the waiting lists and facilitates the marketing, sale and rental of all
BMR homes, including establishing pricing and underwriting buyer qualification.
City of Emeryville
Administration of City’s Below Market Rate Homeownership, Rental and Down Payment Assistance
Programs
Scope: Managing the City’s BMR portfolio of ownership, rental housing and down payment
assistance programs (230 ownership, 600 rental and 173 down payment assistance loans). Hello
Housing markets BMR homes, processes and underwrites the BMR applications, creates closing
documents, coordinates escrow, and performs ongoing compliance monitoring activities. In
addition, Hello Housing underwrites all new tenants in BMR rental units, performed rental compliance
monitoring and manages the down payment assistance portfolio.
City of Livermore
Administration of the City’s Affordable Homeownership and Mortgage Assistance Programs
Scope: Managing the City BMR portfolio (130 homes) and down payment assistance loan portfolio
(81 loans). Hello Housing issues new down payment assistance loans, monitors the loan and
ownership portfolio for compliance with program guidelines, facilitates the sales of all new inclusionary
homes, resale of existing BMR homes and processes refinance requests.
City of Menlo Park
Below Market Rate Homeownership and Down Payment Assistance Loan Administration
Scope: Managing the City’s BMR portfolio (68 homes) and acts as the Loan Servicing Administrator
for the City’s BMR loan portfolio. This loan portfolio includes down payment assistance loans,
emergency repair loans, CDBG loans and rehabilitation loans. Under this program, Hello Housing is
responsible for the monthly collection of amortizing payments from each borrower, responding to
refinance requests, preparing subordination documents where required, preparing payoff demands
and creating Deeds of Reconveyance as loans are paid off. The loan portfolio value totals $3.5M in
principal. Over the past two years, Hello Housing has assisted borrowers in the payoff of 33 loans
totaling $1.5M in value and supported 25 delinquent borrowers to modify their loans and therefore
return back into compliance with the city program.
City of Novato
Below Market Rate Homeownership Program Administration
Scope: Managing the City’s BMR ownership portfolio (409 homes) and rental portfolio (524). Hello
Housing conducts site inspections, holds workshops, reviews refinances for compliance, processes
subordination requests, creates closing docs, performs buy-backs of all homes at risk of foreclosure,
facilitates all resales, reviews BMR rental project rolls, performs tenant eligibility screening, determines
annual rent amount and provides ongoing recommendations to City staff regarding policy
improvements, including direct briefings with City Council members on complex issues.
City of Pleasanton
Below Market Rate Homeownership and Down Payment Assistance Program Administration
Scope: Managing the City BMR portfolio (88 homes) and monitoring the Down Payment Assistance
Loan Portfolio (53 loans). Hello Housing facilitates the sales of all new units, resale of existing BMR
homes, performs compliance monitoring and processes refinance requests.
County of Alameda HCD
Design and Management of Down Payment Assistance Program
Scope: Designing and administering Measure A-1 funded $50M down payment assistance program,
serving moderate income buyers to purchase market rate housing thorough Alameda County. The
Program launched in May 2019. The program has originated 33 loans to-date and is on track to
originate 70 loans a year over the next two years.
Town of Los Gatos
Administration of Town’s Below Market Price (BMP) Homeownership and Rental Program
Scope: Managing the Town’s BMP portfolio of ownership and rental housing (55 ownership and 119
rental homes). Hello Housing processes and underwrites the BMP applications, creates closing
documents, coordinates escrow, and performs ongoing compliance monitoring activities. In
addition, Hello Housing facilitates the marketing, sale and rental of all BMP homes, including
establishing pricing, listing agent coordination, and buyer qualification.
Hello Stewardship contracts with for-profit developers to market and sell their inclusionary BMR
housing:
• Signature Homes: Managed the sale of Signature Homes’ 15 inclusionary BMR homes in
Candlestick Cove. Hello Housing created and implemented the marketing plan, held informational
workshops, performed buyer qualification, conducted lotteries and facilitated close of escrow.
• Tri Pointe Homes: Managed the sale of Tri Pointe Homes’ 16 inclusionary BMR homes in Alameda
Landing. Hello Housing created and implemented the marketing plan, held informational
workshops, performed buyer qualification, conducted lotteries, created closing documents and
facilitated close of escrow.
• Lennar: Managed the sale of Lennar’s 12 inclusionary BMR homes in Daly City and 16 inclusionary
units in Alameda. Hello Housing created and implemented the marketing plan, held informational
workshops, performed buyer qualification, conducted lotteries, created closing documents and
facilitated close of escrow.
• KB Home: Managed the sale of KB Home’s seven inclusionary BMR homes in Lafayette and 11
homes in Daly City. Hello Housing created and implemented the marketing plan, held informational
workshops, performed buyer qualification, conducted lotteries, created closing documents and
facilitated close of escrow.
2. Program Successes and Challenges
Hello Housing has enjoyed numerous successes and developed unique strengths in managing
BMR/BMP programs throughout the years that have provided benefits for our City partners, as well
as competitive advantages for Hello Housing over our peers in the affordable housing program
management industry. A few of our highlighted strengths and accomplishments are outlined below.
Preserving BMRs at Risk of Loss to Foreclosure
Taxpayers invested millions into two affordable homeownership developments in the City of Novato.
Like many BMR projects that were developed in the early 2000s, property values dropped below the
original BMR sales price after the crash, leaving many BMR owners underwater. Combined with the
financial hardships of the recession, these developments were not immune to the foreclosure crisis.
To make it even more challenging, after the dissolution of redevelopment agencies, Notices of Default
and Notices of Trustee’s Sales were being mailed to defunct addresses, preventing the City from
having sufficient time to act. In collaboration with the City, Hello Housing developed a “buy-back
feasibility tool” which guides the Hello Housing team in preserving a BMR unit that would otherwise
be lost to foreclosure.
For example, Hello Housing recently learned on a Friday afternoon about a BMR unit scheduled for
trustee’s sale the following Wednesday. Hello Housing was able gather the necessary data to present
a financial analysis and recommended maximum bid price for City approval. Hello Housing’s Program
Director attended the auction, educating other bidders that if they were to buy the home, they would
be subject to the City’s affordability restrictions. This allowed the City to buy the home at the opening
bid price, which was below the restricted price, leaving room for some rehab and resale costs. Hello
Housing relocated the former owner, performed minor rehab work and sold the home to an eligible
buyer at an affordable price at the AMI level of the original buyer with the resale restriction intact.
Due to the discounted auction price, the City is preserving the affordability of the home while collecting
sales proceeds to help fund its ongoing BMR program administration. To-date, Hello Housing has
preserved eight BMR homes by purchasing through auction purchased, resulting in enough program
revenue to pay for Hello Housing’s services for the two previous years.
Database Management and National Best Practices
Hello Housing is committed to collecting data on program participants to inform marketing and track
programmatic outcomes.
In January 2013, Hello Housing was one of ten organizations nationwide awarded multi-year funding
from the White House Social Innovation Fund and the Ford Foundation to build its capacity to
professionally manage affordable housing programs using national best practices. This financial
support and technical assistance allowed the organization to invest in adopting HomeKeeper, a
Salesforce database designed for BMR and down payment assistance programs, to efficiently
manage their growing portfolio. This platform radically increases the level of complexity that can be
managed by a small staff, making each file’s unique details easily accessible. All relevant application
status, income, property, loan, demographic and impact data is tracked and is easily customized and
exported into reports that will be provided to the Town of Los Gatos.
An added benefit of using HomeKeeper is the ability to participate in a National Data Hub, an
ambitious effort to improve program management and collect impact data for BMR programs so that
programs can be designed based on outcomes rather than anecdotes. The Hub seamlessly
aggregates and crunches a subset of anonymous data from all HomeKeeper users to calculate a set
of social impact metrics. Hello Housing will be able to view reports that compare the impact of its
programs to those of its peers. These comparisons are not public, but they do provide a critical
feedback loop Hello Housing.
Here are some sample screenshots from HomeKeeper:
Hello Housing is a member of Grounded Solutions Network (GSN), a national member-based
organization deeply invested in affordable housing program design and management. GSN provides
us with access to national experts in the field. We send all of our Stewardship staff to their annual
training conference for continuing education and to stay abreast of all affordable housing
management best practices. We aim to meet or exceed GSN’s Stewardship Standards for
Homeownership programs. Hello Housing’s President, Mardie Oakes sits on Grounded Solutions
Board of Directors.
Language Access
Janina Navarro, the Program Manager assigned to work on the Los Gatos contract is fluent in
Spanish. Hello Housing also has staff in the office that are fluent in Mandarin and Cantonese. Should
translation to an additional language be required, Hello Housing has an account with Language Line
that can be utilized (if reimbursed by the Town)
3. Program Costs
Please refer to section C-4: Schedule of Fees.
4. References
City of Cupertino
Kerri Huesler, Housing Manager
408-777-3251
KerriH@cupertino.org
City of Novato
Vickie Parker, Community Development Director
415-899-8938
vparker@novato.org
County of Alameda
Michelle Starratt, Housing Director
510-670-5207
michelle.starratt@acgov.org
C. Proposal
1. Application
2. Proposal Narrative
Bay Area nonprofit Hello Housing is uniquely positioned to offer comprehensive BMP portfolio
administration to the Town of Los Gatos. Hello Stewardship, a program of Hello Housing, currently
manages an array of homeownership, rental and downpayment assistance programs for 10
jurisdictions, providing active management of 1,240 deed-restricted ownership homes and 1,384
BMR/BMP rental units. Hello Housing has a proven track record in all requested services, except
homebuyer counseling which is referred to local, HUD-certified partner agencies. As the Town’s
current administrator of five years, Hello Housing is well-versed in the BMP program and has
established relationships with program participants and property managers.
3. Implementation Plan
Hello Housing’s approach to managing Below Market Rate (BMR) Programs is to Simplify, Serve and
Sustain.
SIMPLIFY We invest heavily in setting up programs for success. We create custom
webpages for each program we manage, clarifying program guidelines and providing
downloadable access to key forms for program participants. We scan files into an archival PDF
for efficient reference by staff. We enter key data into Homekeeper, our web-based Salesforce
database, providing staff and our partners with homebuyer details and transparent program-
wide reporting at the touch of a button.
SERVE BMR programs are nuanced and there can be a great deal of confusion among
BMR program participants, especially when oversight has been inconsistent. This lack of clarity
creates stress for the owner and presents real challenges for cities charged with serving their
citizens. We provide relief to jurisdictions by educating BMR program participants about
ongoing program requirements, helping renters qualify for units, guiding owners through the
refinance and resale process and providing active management when something goes wrong.
SUSTAIN Hundreds of millions of taxpayer dollars have been invested into affordable
homeownership and rental programs in California. Like any investment, active management is
necessary to reduce the risk of loss or abuse. Without the dedicated support of people who
truly understand the program, owners of Below Market Rate homes may lose their home to
foreclosure, ending up worse off than when they started, or they may over encumber their
home, putting the asset at risk. Renters whose incomes have risen and no longer qualify for
lower rents diminish the impact of the program by being allowed to stay in a BMR units. At a
time when the demand for affordable housing and the volume of households being displaced
is so high, the protection and preservation of BMR portfolios is paramount. Hello Stewardship
follows national best practices to ensure this housing stock is available for future generations.
By providing active, professional and affordable administration of Below Market Rate ownership and
rental programs, Hello Stewardship helps jurisdictions achieve their program goals within a context
of limited resources. When managed well, BMR programs create real opportunities for low- and
moderate-income families to improve their lives. In the case of homeownership, this means
homebuyers not only purchase a home, but are able to stay in their home, send their children to
better schools, and save money to enter into the conventional homebuyer market.
The following represents Hello Housing’s implementation plan, which would commence immediately
upon the execution of a contract. Hello typically fully onboards a program within 3 months of contract
execution, which means staff will be trained and well-versed in the program, inventory all program
documents and send out introductions letters, but Hello Housing and the town have the benefit of
that scope of work already completed in the previous contract period.
I. Field Calls from the town and public, maintain website, reporting
Hello Housing will field all program inquiries, maintain current webpages, advertise the BMR
program, provide applications upon request, maintain an interest list of buyers and refer renters
to property managers. Hello Housing will maintain a preferred BMR lender list which have all
program document approved by their bank. Hello Housing will offer translation services in
Spanish, as needed. At the request of the City, Hello Housing will calculate BMR prices for new
BMR for-sale projects, suggest modifications to the program and assist City staff on program-
related matters. Hello Housing will maintain relationships with at least two local homebuyer
counseling agencies and direct prospective homebuyer to these organizations for pre-purchase
and post-purchase counseling. Hello Housing will develop and provide semi-annual activity
reports to the town.
II. BMP Owner Occupancy Monitoring
Hello Housing will annually send up to three letters to BMR homeowners and borrowers
requesting verification of occupancy and any other compliance requirements of the program,
such as insurance. Hello Housing will perform a review of the liens recorded on title to identify any
new liens or title transfers that are unpermitted. Upon completion of annual monitoring and
compliance, Hello Housing will provide the city with a monitoring report summarizing the findings
and listing detailed information regarding non-responders or non-compliant responders. All
monitoring results will also be tracked in our Salesforce database. Should owners be non-
responsive or out of compliance and the City is prepared to take action, Hello Housing can
provide enforcement services.
III. BMP Workshops
Hello Housing will conduct workshops as needed to inform the general public about BMP
ownership opportunities as well as provide information to current tenants and property managers
for the BMP rental program. Ownership workshops will include a customized presentation to the
specific development or opportunity, providing detailed instructions on the application process
as well as the resale restrictions and available financing. Rental workshops will provide an
overview of the program as well as create an opportunity for tenants and property managers to
ask questions.
IV. BMP Resale Management
Hello Housing will prepare marketing materials and advertise homes to the maintained interest
list for the City, referenced populations such as school districts, as well as Hello Housing’s Stay
Connected E-Newsletter, which has over 17,000 aspiring first time homebuyers in the throughout
the Bay Area. Hello Housing will review all pest and inspection reports to determine any repairs
needed before listing the home for sale. If it is determined that an additional visual inspection is
needed, Hello Housing will perform a site inspection. Hello Housing will calculate the restricted
resale price in accordance with the Town’s agreements and create a resale application. The listing
agent will be responsible for holding at least one open house. Education about program
requirements, a responsibility matrix and a sales timeline will be provided to listing and buyer’s
agents. Hello Housing will perform a lottery to ensure fairness and equal access to the
opportunity. Hello Housing will review applications in lottery ranking order for completeness,
verification of preference points and program eligibility. A complete file will then be sent to the
Town along with an income calculator, detailed checklist and our recommendation for approval.
Once the Town approves the file, we will begin collecting the required information from escrow
and the lender that is needed to complete the City documents including restrictions, notes, DOTs
and escrow instructions. Hello Housing will create the BMP documents and route to the Town
with instructions for signature and notarization. Hello Housing will track escrow ensuring
conforming loan is secured, a timely close is met and the City receives copies of recorded
documents. Once complete, these files become part of our ongoing monitoring portfolio. Finally,
Hello Housing will send an exit survey to the BMP owner leaving the program to track the impact
of the program including equity gained, and type of housing they are moving into (e.g. rental,
affordable or market-rate ownership).
V. BMP Refinances and Subordination
Hello Housing will answer questions from the public and provide information on acceptable first
loan products for a refinance, required documentation needed to process a request, and timeline
expectations for lenders and owners. Hello Housing will coordinate with the Title Company and
first lender for access to a preliminary title report and the lender’s 1003, 1008 and loan estimate
in order to review and confirm that the refinance meets program guidelines. Once our review is
complete and the request is approved, Hello Housing will prepare the subordination agreement,
escrow instructions and a request for notice of default and route for signature. Lastly, we will
follow up with the title company on close of escrow, and status of the Town’s receipt of copies
of recorded documents.
VI. BMP Rental Compliance Monitoring
Hello Housing will coordinate with BMP rental property managers to obtain annual compliance
reports for rent-restricted tenants which will include names of all adults on the lease, addresses,
lease dates, incomes and rent amounts. Hello Housing will reach out directly to each tenant in
the program annually and request a completed re-certification to be completed, which will include
an application and supporting documentation substantiating income and program eligibility. Hello
Housing will follow-up with property managers and tenants for missing information up to three
times. Hello Housing will work with property managers directly for any required rent adjustments
or to terminate a tenant’s program participation if they no longer qualify or are non-responsive.
Hello Housing will prepare detailed monitoring reports summarizing the compliance monitoring
efforts and results.
VII. BMP Rental Eligibility Verification Upon Vacancy
Hello Housing will coordinate with property managers on projects that have a vacancy in a BMP
rental unit. Hello Housing will review all program applications and supporting documents
presented from the Property Managers for initial lease up to confirm eligibility. If a file is incomplete
a list of conditions will be sent to the property managers. Upon satisfactory evidence of eligibility,
Hello Housing will provide tenant and property manager with an approval or denial notification,
and coordinate with the property manager to obtain the signed lease and BMP addendum.
VIII. Demographic Survey of Existing Owners/Tenants
In order to determine if the Town’s BMP programs are serving diverse populations equitably,
Hello Housing will conduct a demographic survey of the portfolio of owners and tenants that are
participating in the program. Hello Housing will collect demographic, language, and educational
information whenever there is a touchpoint with the owner or tenant (e.g.
monitoring/recertification, refinance, etc.) to increase response rates to a level where we can
draw more confident conclusions about who the program is serving. In order to benchmark the
results of this survey as best we can, the format and choices of questions closely mirror how
questions are asked by the U.S. Census Bureau. This information will be stored in Hello
Housing’s CRM Salesforce software, HomeKeeper. Annually, Hello Housing will provide an
update of the BMP program demographic composition along with the monitoring results.
IX. Hourly Services
Hello Housing will provide services at an hourly rate for all programmatic needs not included in
the scope listed above, such as foreclosure prevention, program guidelines consultation, BMP
buy-back or any other requested scope of work not listed in the above sections.
4. Schedule of Fees
Proposed Pricing for the Town of Los Gatos
21-Aug-20
Ownership - Key Assumptions 2020-2021 2021-2022 2022-2023BMP Ownership Homes in Portfolio 55 55 55
Estimated Number of Resales 2 2 2
BMP Homes Subject to Annual Monitoring 55 55 55Estimated Number of Refinances 3 3 3Annual Escalator (a)7%7%
Ownership Activities Notes 2015-2020 Rates 2020-2021 Rates 2021-2022 Rates Year 1 Year 2 Year 3ANNUAL FIXED FEES
Field calls from Town & public, maintain website, staff, reporting (b)$625 per month $650 per month $696 per month 7,800$ 8,346$ 8,892$
BMP Ownership Annual Compliance Monitoring $150 per household $165 per household $177 per month 9,075$ 9,710$ 10,346$
Annual Fixed Cost Subtotal Annual Fixed Cost Subtotal 16,875$ 18,056$ 19,238$
ANNUAL VARIABLE FEES (VOLUME DEPENDENT)BMP Workshops $750 per workshop $1,000 per workshop $1,070 per workshop -$ -$ -$
Management of Resales $7,500 per home $10,380 per home $11,107 per home 20,760$ 22,213$ 23,666$
Management of Refinances $650 per transaction $875 per transaction $936 per transaction 2,625$ 2,809$ 2,993$
Demographics Summary Report for Existing Homeowners n/a $15 per household 825$
Allowance for Hourly (assumes Program Manager rates for pricing)$85 per hour $110 per hour $118 per hour 1,100$ 1,177$ 1,254$
Variable Cost Subtotal 25,310$ 26,199$ 27,913$
OWNERSHIP
Annual Fixed Costs 16,875$ 18,056$ 19,238$ Projected Transactional Costs 25,310$ 26,199$ 27,913$ 42,185$ 44,255$ 47,150$
Rental - Key Assumptions 2020-2021 2021-2022 2022-2023
BMP Rental Homes in Portfolio 119 119 119
Estimated Number of BMP Rental Unit Turnover 6 6 6Estimated Number of Eligibility Reviews to Fill a Vacant Unit 2 2 2Rental Workshops 1 1 1Annual Escalator 7%7%
Rental Activities Notes 2015-2020 Rates 2020-2021 Rates 2021-2022 Rates Year 1 Year 2 Year 3ANNUAL FIXED FEES
Field calls from City & public, maintain website, staff, reporting (b)$625 per month $650 per month $696 per month 7,800$ 8,346$ 8,892$
BMP Rental Compliance Monitoring (d)$300 per unit $600 per unit $642 per unit 71,400$ 76,398$ 81,396$
Annual Fixed Cost Subtotal 79,200$ 84,744$ 90,288$
ANNUAL VARIABLE FEES (VOLUME DEPENDENT)BMP Meeting/Workshops $750 per workshop $1000 per workshop $1070 per workshop 1,000$ 1,070$ 1,140$
BMP Rental Eligibility Verification Upon Vacancy (d)$300 per applicant $600 per applicant $642 per applicant 7,200$ 7,704$ 8,208$
Demographics Survey of Existing Tenants n/a $15 per household 1,785$
Allowance for Hourly (assumes Program Manager rates for pricing)$85 per hour $110 per hour $118 per hour 1,100$ 1,177$ 1,254$
Annual Variable Cost Subtotal 11,085$ 9,951$ 10,602$
RENTALAnnual Fixed Costs 79,200$ 84,744$ 90,288$ Projected Transactional Costs 11,085$ 9,951$ 10,602$ 90,285$ 94,695$ 100,890$
TOTAL OWNERSHIP & RENTALAnnual Fixed Costs 96,075$ 102,800$ 109,526$ Projected Transactional Costs 36,395$ 36,150$ 38,515$
Total 132,470$ 138,950$ 148,040$
5% contingency 6,624$ 6,947.51$ 7,402.02$
Contact Maximum (c)139,094$ 145,898$ 155,442$
Additional Services Available Upon Request Rates
BMR Homeowner Custom Annual Newsletter $4000 per issue
Hourly Consulting Fees (for services outside base scope)President 145$ 225$ Vice President -$ 175$
Program Director 105$ 145$ Program Manager 85$ 125$ Program Associate 55$ 75$
Notes
Administration of Los Gatos's BMR Program
(a) For muti-year contracts, Hello Housing incorporates an annual cost escalator of 7%.(b) The fee covers staff time fielding questions from applicants, program participants, and the City, submitting reports, regularly updating website and marketing materials andcross-training of multiple staff to be versed in the program
details. This fee will be charged on monthly pro-rata basis.
(c) Hello Housing held fees flat for 5 years despite tremendous increase in cost of living for staff during that time. Current pricing is commensurate with cost of staffing, training and office expenses.