Explanation
BACKGROUND: This legislation will authorize funding for the first year of a two-year contract with AmeriNational Community Services, Inc. This contract will begin March 1, 2014 and expire on February 28, 2016. This contract provides servicing of housing and commercial loans for primarily the Community Development Block Grant (CDBG), Community Development Block Grant Recovery (CDBG-R) Programs, Home Investment Partnership Program (HOME), and the Neighborhood Stabilization Program (NSP) grants.
This ordinance is contingent upon the passing of Ordinance 0051-2014, 2014 CDBG Appropriation.
Competitive bids were solicited for this service through VendorServices (commodity codes 94660 and 94649) in 2011. The 2011 Mortgage Loan Servicing RFP provides for four two-year contract periods.
One firm responded and was selected (AmeriNational Community Services, Inc).
Contract Compliance Number is 41-1951655 and expires November 22, 2015.
This legislation is submitted as an emergency measure to ensure uninterrupted servicing of the loan portfolios.
FISCAL IMPACT: AmeriNational Community Services, Inc. receives a service fee based upon the loans serviced each month. The total amount to be authorized for the first year of this two year contract is $120,000.00 This ordinance is contingent upon the passage of the CDBG appropriation scheduled to appear before council on January 27, 2014 (Ordinance #0051-2014). The amount of CDBG funds spent on the contract for the past two completed terms was $92,150.94 in 2011 and $106,523.43 in 2012.
Title
To authorize the director of the Department of Finance and Management to expend $120,000.00 or so much thereof as may be necessary from the Community Development Block Grant (CDBG); to fund the first year of a two-year contract with AmeriNational Community Services, Inc. which provides servicing of housing and commercial loans; and to declare an emergency. ($120,000.00) (AMENDED BY ORD. 0804-2014 PASSED 4/21/2014)
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