Explanation
BACKGROUND
This legislation authorizes the repeal of ordinance 0201-2020, authorizes the appropriation and expenditure of $95,000.00 from the Neighborhood Economic Development fund, and authorizes the Director of Development to modify a contract with AmeriNational Community Services, LLC for loan servicing. The modification will include adding $95,000.00, authorizing payments for services retroactive to March 1, 2020, extending the contract end date to June 31, 2021, and allowing the addition/removal of program guidelines/loan servicing options as necessary throughout the contract period, as loans are added/removed from the loan portfolio over time. These would be non-substantive changes to the terms of the contract.
AmeriNational services loans provided to small business, home owners, home builders, and multi-family unit builders funded by the city’s Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and the Neighborhood Stabilization Program (NSP) grants.
Competitive bids were solicited for this service through Vendor Services in 2011. The 2011 Mortgage Loan Servicing RFP provided for four, two-year contract periods. One firm responded and was selected (AmeriNational Community Services, LLC).
The original procurement effort and contract, including most renewals, were managed by the Department of Finance and Management. In 2019, the Department of Development took ownership of the contract as the loans in the portfolio are held by the Department of Development. Since taking over the contract, Development has begun the process of reviewing the loan portfolio. Before the COVID-19 pandemic, the department intended to work diligently to review the portfolio, make it portable to a potential new vendor, and advertise for new loan servicing in mid-2020. Due to the disruption in work caused by the pandemic, and given that most of the files are paper files, the portfolio review will take longer than anticipated so...
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