Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to modify (Modification 2) and extend a not-for-profit service contract with the Tony R. Wells Foundation, in an amount up to $249,845.00 for the purpose of acting as fiscal manager of the American Dream Downpayment Initiative (ADDI) program. Funding will be advanced on a predetermined schedule.
Original contract amount $267,500.00 Ord. 2768-2022 PO363646
Modification 1 amount $133,750.00 Ord. 3069-2023 PO423050
Modification 2 amount $249,845.00 Ord. 2172-2024
Total contract amount $651,095.00
The Housing Division adapted the ADDI program to use non-federal funds for the purpose of down payment assistance for homebuyers not in the Homeownership Development program. This expansion increased accessibility of the program to applicants up to 120% AMI and reduced the time to compile and review a file as specific HUD related required documents will not be required for this source of funds.
The Wells Foundation, a non-profit organization, will act as a fiscal manager for the program. The additional funding provided by this modification will allocate $233,500.00 for down payment assistance for low, moderate and middle income homebuyers and $16,345.00 (at 7% of the funds distributed) for administrative costs for the Wells Foundation. The contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts. The funds will all be provided to the Wells Foundation up front with ongoing reporting on disbursements.
The services included in this not-for-profit service contract cannot be provided by existing city employees because these services are beyond the City’s current staffing capacity to provide.
This legislation will extend the existing contract through March 31, 2025, and increase the amount by $249,845.00.
Emergency action is requested to modify and extend the agreement to prevent disrupti...
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