MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY RENTAL ASSISTANCE & HOMELESS SOLUTIONS DIVISION HOUSING CHOICE VOUCHER PROGRAM

HOUSING CHOICE VOUCHER PROGRAM OVERVIEW • Statewide Program – one of the largest in the country • Administers close to 25,000 vouchers • Contracts out for Housing Agent Services • Designated a High Performing Public Housing Agency (PHA) by HUD

2012 REQUEST FOR PROPOSAL • Incorporates recommendations from HUD and Consultants relating to: • Regionalization/Caseload Size • Accessible Offices • Quality Control • Anticipated Outcomes: • Selection of qualified Housing Agents • Improved Program Efficiencies • Improved Customer Service • Improved Communication and Quality Control

FORMAT OF WEBINAR • Phones are muted – MSHDA presenters will not be able to hear any of the callers • MSHDA will only respond to written questions relating to the RFP • MSHDA will respond to all questions it receives: • MSHDA will provide a written response • MSHDA will post its responses on MSHDA’s website (www.michigan.gov/MSHDA) as they are formulated • All written questions must be received by the close of business on August 20, 2012.

WEBINAR AGENDA Request for Proposal – Sally Harrison Scope of Work (Ex. A) – Lisa Dove Instructions & Selection Criteria (Ex. B) – Sally Harrison Organizational Background (Ex. C) – Jon Stuckey Sample Contract (Ex. D) – Jon Stuckey Payment to Contractor (Ex. D-1) – Lisa Dove Performance Measures & Incentive Pay (Ex. D-2) – Shelly Kritzman Regional Map (Ex. D-3) – Sally Harrison Certificate Verifying Key Persons (Ex. E) – Jon Stuckey Certificate Regarding Debarments (Ex. F) – Jon Stuckey W9 Request for Taxpayer Identification Number (Ex. G) – Jon Stuckey

1. REQUEST FOR PROPOSAL (RFP) • RFP Format • MSHDA utilizes a standard format for Personal Services Contracts • State of Michigan requires a competitive bid process • MSHDA Board adopted this requirement in 2011 • Services sought by MSHDA • Provide Housing Choice Voucher (“HCV”) services according to MSHDA’s Standard Operating Procedures, Administrative Plan, and PHA Plan • Perform all services outlined in the RFP Scope of Work (Ex. A)

1. REQUEST FOR PROPOSAL (RFP) • Required Contractor Qualifications: • Must have experience providing HCV Services • Must have qualified personnel to perform all services outlined in the RFP Scope of Work • Must be a Michigan entity authorized to do business in the State of Michigan • Must have a publicly accessible office in each sub-region awarded • Must have communication systems sufficient to meet the needs of the HCV Program • Must agree to satisfy all requirements identified in Section II (F) of the RFP prior to execution of a contract with MSHDA

1. REQUEST FOR PROPOSAL (RFP) • Insurance Requirements • Must meet all insurance requirements noted in Section II(F)(2)(a-c) • Proof of insurance must be submitted in a format acceptable to the MSHDA Director of Legal Affairs prior to execution of the contract, but no later than December 1, 2012.

1. REQUEST FOR PROPOSAL (RFP) • Key deadlines • All questions regarding the RFP must be submitted in writing to MSHDA no later than the close of business on August 20, 2012 • All proposals must be submitted to MSHDA no later than the close of business on September 6, 2012

1. REQUEST FOR PROPOSAL (RFP) • Freedom of Information Act • All materials submitted to MSHDA will be subject to the Michigan Freedom of Information Act • Applicants may choose to limit personal identification information by utilizing business addresses, phone numbers, etc. • Key Persons • Applicants must utilize definitions included in Section VIII of the RFP and ensure all individuals are listed on the Certificate Verifying Key Persons of the Contractor/Subgrantee (Ex. E) • Applicants must follow the procedures outlined in Section IV of the RFP if a Key Person is a retiree of the State Employees Retirement System

2. SCOPE OF WORK (EX. A) • Objectives • Provide quality and necessary services to the HCV Applicants and Participants and other Community Partners including, but not limited to, MSHDA staff, Landlords, Continuums of Care (“COCs”), and Service Providers. • Provide those above mentioned Services at a high performing level based on Performance Measures and Incentives as identified in Ex. D - 2

2. SCOPE OF WORK (EX. A) • Tasks and activities to be provided to HCV Applicants, participants, and other partners: • Maintain Project Based Waiting Lists • Verify eligibility of Waiting List Applicants. • Brief Applicants and issue Vouchers • Execute a Housing Assistance Payment Contract (“HAP Contract”) between the Applicant/Participant and Landlord • Perform a yearly Annual Re-Examination for each active, assigned Participant • Perform a yearly HQS inspection for each active, assigned Participant • Process any HCV Participant moves, transfers, income or family composition changes, ownership or contract rent changes, portability, and cancellations • Encourage participation in FSS and KTO Programs • Maintain knowledge of all MSHDA programs and Services available in the Contractor’s regions/sub-regions/counties • Maintain knowledge of MSHDA’s SOP • Return all Equipment and Documents upon the request of MSHDA or upon termination

2. SCOPE OF WORK (EX. A) • File Maintenance and Security • MSHDA is not responsible for the Contractor’s equipment • Files must be protected from fire, be secured from the general public, and be labeled CONFIDENTIAL • The selected Contractor shall use and maintain hardware and software that is compatible with the software used by MSHDA • The selected Contractor shall follow the protocol for the removal/disposal of personal data in electronic format as detailed in Section II(E)(4) of the Scope of Work • The prospective Contractor and Key Persons of the selected Contractor must attend security awareness sessions and complete required forms before performing services for MSHDA • The prospective Contractor must complete and file a Security Plan with MSHDA prior to execution of the contract, but no later than December 1, 2012

2. SCOPE OF WORK (EX. A) • File Maintenance and Security (Continued) • Maintain Participant file in accordance with HUD and MSHDA standards • Retain all records • Provide MSHDA with reports upon request • Notify MSHDA of any legal action to which the selected Contractor is subject • Not use the State’s data for any purpose other than providing the services set forth in the Scope of Work • Notify MSHDA of any security breach • Secure Personal Identifying Information • Adhere to state and federal privacy and FOIA laws

2. SCOPE OF WORK (EX. A) • The selected Contractor must: • Adhere to the Covenant Not to Discriminate • Comply with Equal Opportunity rules, regulations, and requirements • Comply with Workplace Safety and Discrimination Harassment rules • Not provide or accept gifts from identified parties • Adhere to Unfair Labor Practice standards

3. PROPOSAL INSTRUCTIONS & SELECTION CRITERIA (EX. B) • Proposal Format • Business Organization • Applicants may limit Key Persons cell phone number to a business cell phone number • Office Locations • Applicants must identify or describe their plan for obtaining one primary publicly-accessible office in the Sub-Region • Satellite office hours must be maintained as required • Arrangements with local service organizations, public agencies, etc. to utilize facility for private meeting room is acceptable

3. PROPOSAL INSTRUCTIONS & SELECTION CRITERIA (EX. B) • Proposal Format (Continued) • Management and Personnel • Resumes are required for all officers and managers • Resumes are preferred, but not mandatory for key service personnel • Experience • Resumes are required for all personnel who: • Manage the Organization • Provide direct services to program participants • Complete Housing Quality Standards (HQS) inspections

3. PROPOSAL INSTRUCTIONS & SELECTION CRITERIA (EX. B) • Proposal Format (Continued) • Performance • All submitted performance documentation will be reviewed to evaluate the Applicant’s performance • Applicants are encouraged to provide any information they feel is relevant • Existing contractual housing agents must submit a copy of the past two years of performance ratings • Non-existing contractual housing agents must submit all relevant documentation listed in Section II(B)(4)(b-d) of the Proposal Instructions and Selection Criteria

3. PROPOSAL INSTRUCTIONS & SELECTION CRITERIA (EX. B) • Proposal Format (Continued) • Capacity to Deliver Services • Must identify Sub-Region(s )applying for • Describe the prospective Contractor’s plan to deliver services • Describe what competitive advantages the prospective Contractor has in the delivery of services • Community knowledge, connection, & involvement • Describe any existing relationships with service organizations in Sub-Region(s) applied for • If no existing relationships in Sub-Region(s) applied for, applicant must describe how it will create relationships

3. PROPOSAL INSTRUCTIONS & SELECTION CRITERIA (EX. B) • Proposal Format (Continued) • Proposed Services • How will services be rendered • Will any of work be subcontracted • How will quality of service be monitored and ensured • Price Proposal and Budget • The rate of payment will be $24 per month per HCV Participant under an executed HAP Contract and that is approved for payment by MSHDA • Applicants must submit a line item budget identifying all expenses related to the work to be performed

3. PROPOSAL INSTRUCTIONS & SELECTION CRITERIA (EX. B) • Selection of Proposal • Selection Process will consist of two phases • Phase I • Maximum of 100 points • Must score 75 points or greater to move to Phase II • Phase I factors include completeness of applicant’s submission (i.e. quality of written proposal, all questions answered etc.), and the applicant’s experience, past performance, capacity, and community connections

3. PROPOSAL INSTRUCTIONS & SELECTION CRITERIA (EX. B) • Selection of Proposal • Selection Process (Continued) • Phase II • MSHDA will interview the prospective Contractor’s management team • Interview graded Excellent, Good, Average, or Below Average • Notification of Selection • MSHDA expects to notify selected Contractors on or about November 1, 2012 • Selection is contingent on Michigan Civil Service Commission and MSHDA Board approval

4. ORGANIZATIONAL BACKGROUND CHECKLIST (EX. C) • Lists all business organization items that must be submitted • W9 request is Ex. G, not Ex. I • CHDO Tax ID number only applicable if you are a CHDO • Certificate of Status/Certificate of Good Standing are same document, entity type (LLC, S-Corp, etc.) dictate which one you will get

5. SAMPLE CONTRACT (EX. D) • This is a sample of the contract template MSHDA will use for all personal service contracts going forward. • Final Housing Agent Contract will be substantially the same, but may have a few minor additions

6. PAYMENT TO CONTRACTOR (EX. D-1) • Base Pay • Monthly fee for each voucher that the Contractor administers that is (1) under an executed HAP Contract and (2) in effect on the first day of each month • Base pay is $24 for each voucher • Incentive Pay • Must meet criteria described in Section 5.1.1 of Ex. D-2 in order to be eligible for incentive pay • If Contractor meets incentive pay criteria, they will receive 12 months of incentive pay at a rate of $1 for each voucher that is under an executed HAP Contract and is approved for payment by MSHDA

6. PAYMENT TO CONTRACTOR (EX. D-1) • Penalties • HUD Audit Findings • Serious errors as determined by MSHDA • Failure to provide information and reports to MSHDA

6. PAYMENT TO CONTRACTOR (EX. D-1) • Retroactive Pay • No Retroactive pay for late submissions of new contract documents • New HAP Contracts cannot be approved more than 60 days after the HAP Contract’s effective date • Incoming portability HAP Contracts cannot be approved more than 150 days after the voucher issuance date • No retroactive pay for late submissions of contract documents for re-examinations • Annual re-examinations cannot be approved more than 60 days after the annual re-examination anniversary date

6. PAYMENT TO CONTRACTOR (EX. D-1) • Billing Procedures • MSHDA will generate payments monthly for deposit into the Contractor’s account • Contractors can view their payments in the Admin Fee Payments Report located in Elite • The Contractor must submit corrections to the HA Payroll coordinator by the 15th day of the current month in order for the corrections to appear in the next months billing

6. PAYMENT TO CONTRACTOR (EX. D-1) • Homeownership Incentive Fee • MSHDA shall pay the Contractor a bonus of $100 if: • A participant has left the HCV Program and the participant no longer receives rental assistance because the participant became a homeowner • The participant did not leave the HCV Program due to a violation • MSHDA has verified proof of purchase

7. PERFORMANCE MEASURES & INCENTIVE PAY (EX. D-2) • Overview • MSHDA will measure the Contractor’s performance of the activities described in the Scope of Work (Ex. A) and Housing Agent Agreement using the following standards: • Monthly Performance Standards • Quarterly Field Audits • Yearly Performance Standards

7. PERFORMANCE MEASURES & INCENTIVE PAY (EX. D-2) • Rating • MSHDA will rate the Contractor’s performance for each standard as: • High Performer; • Standard Performer; or • Troubled Performer

7. PERFORMANCE MEASURES & INCENTIVE PAY (EX. D-2) • Performance Standards • Monthly Performance Standards • MSHDA will measure the following factors when computing the Contractor’s Monthly Performance Standards rating: • Lease up Rate • Annual Re-Examination Rate • Late New Admissions • Multifamily Tenant Characteristic System Errors • Pre-Contract Housing Quality Standards • Annual Housing Quality Standards

7. PERFORMANCE MEASURES & INCENTIVE PAY (EX. D-2) • Performance Standards (Continued) • Quarterly Field Audit • MSHDA will measure the following factors when computing the Contractor’s Quarterly Field Audit rating: • Waiting List Eligibility • Reasonable Rent • Adjusted Income • Housing Quality Standards (HQS) • Professionalism and Client Services Relationships • Clerical Errors • Promote Family Self-Sufficiency (FSS) and Key To Own (KTO) Programs

7. PERFORMANCE MEASURES & INCENTIVE PAY (EX. D-2) • Performance Standards (Continued) • Yearly Performance Standards • MSHDA will measure the following factors when computing the Contractor’s Yearly Performance Standards rating: • File Security Plan • Division Updates, Overviews, and Presentations • Expanding Housing Opportunities (including Landlord List and de-concentration of Poverty Indicators

7. PERFORMANCE MEASURES & INCENTIVE PAY (EX. D-2) • Troubled Performance Ratings • Troubled Performance Ratings can occur during Monthly, Quarterly, or Yearly Reviews • If a Contractor receives three or more overall Troubled Performance Ratings within a 12 month period, the Contractor will be required to submit a Corrective Action Plan to the Director of Rental Assistance and Homeless Solutions for approval within five business days of being notified by MSHDA

7. PERFORMANCE MEASURES & INCENTIVE PAY (EX. D-2) • Troubled Performance Ratings (Continued) • Once the Corrective Action Plan is approved, the selected Contractor will have 90 days to implement the Corrective Action Plan, correct all deficiencies, and maintain a Standard Performer Rating in the Monthly Performance Standards and Quarterly Field Audit • Failure to meet the this requirement within the 90 day period will result in a material breach of the Housing Agent Agreement • No more than one Corrective Action Plan will be executed within a 12 month period

8. REGIONAL MAP (EX. D-3) • Chart lists the eight Regions and 19 Sub-Regions • The total voucher allocation by Region and Sub-Region is listed • VASH vouchers have their own line item • Sub-Regions which may have more than one Contractor are identified

9. CERTIFICATE VERIFYING KEY PERSONS (EX. E) • Any individual identified as a Key Person under Section VIII of the RFP must be listed on the Certificate • Applicant must state whether or not each individual identified as a Key Person is a retiree receiving a pension from the Michigan State Employees Retirement System • If certificates are not provided for all Key Persons, MSHDA may declare the selected Contractor to be in material breach of the Housing Agent Agreement

10. CERTIFICATE REGARDING DEBARMENTS (EX. F) • The selected Contractor must answer each question and certify that they are in compliance and not currently debarred • If it is shown that the selected Contractor purposely or willfully submitted false information, MSHDA may terminate any existing contract with the selected Contractor and may pursue debarment • The selected Contractor has a duty to immediately notify the Director of Rental Assistance and Homeless Solutions if any of the certifications, representations, or disclosures in the document change during consideration of the selected Contractor’s responses or after the awarding of a contract.

11. W9 REQUEST FOR TAXPAYER IDENTIFICATION NUMBER (EX. G) • Each applicant must provide a W9 for their operating entity as noted on the Organization Background Checklist

REMINDER All questions regarding the RFP must be submitted in writing by the close of business on August 20, 2012 All proposals must be submitted by the close of business on September 6, 2012

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY