Amendment to Contract No. 2019-03: Amend Contract 2019-03 between the City of Flagstaff and Housing Solutions of Northern Arizona for the City of Flagstaff Employer Assisted Housing (COF-EAH) program to clarify employee eligibility criteria.

The City of Flagstaff Housing Section is requesting an amendment to Contract No. 2019-03 between the City of Flagstaff and Housing Solutions of Northern Arizona, Inc. (HSNA). The amendment will clarify a recently-identified ambiguity related to employee eligibility requirements.  This amendment will clarify that the months of employment in a contract employee capacity count towards the required 12 months of service enabling that employee to receive housing assistance upon transfer to a position funded with ongoing dollars.  The Housing Section believes this amendment upholds the intent of the program to recruit and retain the City of Flagstaff employees.

If the amendment is adopted, the Scope of Work outlining COF-EAH eligibility criteria will be amended as follows:

Current contract eligibility criteria
2.1.2 Eligible buyers must meet employment guidelines, have worked for the City of Flagstaff in a non-temporary position for a minimum of twelve (12) consecutive months, have the most recent performance evaluation demonstrate work performance meeting or exceeding expectations, and not be on a performance work plan.

Requested contract amendment for eligibility criteria
2.1.2 Eligible buyers must:  (1) meet employment guidelines as established by the City of Flagstaff Housing Section; (2) currently be employed by the City of Flagstaff in an ongoing funded position classified by Human Resources as Employment Status Exempt (E), FT Tenure Eligible (TE), FT Tenure Granted (TG), PT Tenure Eligible (PE), or PT Tenure Granted (PG); (3) have worked for the City of Flagstaff in a non-temporary position classified by Human Resources as Contract (CN), E, TE, TG, PE, or PG for a minimum of the previous twelve (12) consecutive months, (4) have the most recent performance evaluation demonstrate work performance meeting or exceeding expectations, and (5) not be on a performance work plan.

***A PowerPoint presentation is attached***

This amendment will not have any financial impact.

Affordable Housing Goal
Pursue financing strategies for affordable housing to create additional rental and ownership housing opportunities.

Regional Plan: Goal NH.3. Make available a variety of housing types at different price points, to provide housing opportunity for all economic sectors. Policy NH.3.3. Increase the availability of affordable housing for very low-income persons, through innovative and effective funding mechanisms.

Personnel Goal
Expand the Housing Assistance Program for all City Staff.

On July 14, 2015, HSNA was selected as a qualified respondent through a Request for Statement of Qualifications process and Council approved the Flagstaff Police Department Employer Assisted Housing FPD-EAH program.

On July 14, 2015, HSNA was selected as a qualified respondent through a Request for Statement of Qualifications process and Council approved the FPD-EAH program.

On November 7, 2017, Council amended the FPD-EAH pilot program by broadening the assistance to be available to all eligible City of Flagstaff employees, known as the City of Flagstaff Employer Assisted Housing Program (COF-EAH).

On November 6, 2018, Council approved Contract 2019-03 allowing HSNA to continue the administration of the City of Flagstaff Employer Assisted Housing (COF-EAH) program available to all eligible City of Flagstaff employees and to administer the new Community Homebuyer Assistance Program (CHAP) available to Flagstaff citizens. This procurement process was conducted through a Request for Proposal (RFP). HSNA was the single respondent to the RFP and was deemed the successful bidder.

1. Approve the contract amendment as recommended, and authorize the City Manager to execute the contract amendment.
2. Approve the contract amendment with modifications, and authorize the City Manager to execute the contract amendment.
3. Do not approve the contract amendment.

The COF-EAH was designed to provide all eligible households with the opportunity for homeownership by providing funds toward the down payment on a home. The goals of the COF-EAH Program were not only to add a housing-based benefit but to also promote recruitment and retention of City of Flagstaff employees.

The COF-EAH program is effectively being administered by HSNA. To date, the program has opened the doors to homeownership for thirteen (13) first-time Flagstaff homebuyers who are employees of the City of Flagstaff. Currently, HSNA is working with an additional three (3) City of Flagstaff employee households who are under contract to purchase.

The program has proven successful to recruit and retain members of Team Flagstaff.

Current parameters of the COF-EAH program include:
 

• Must be an employee of the City of Flagstaff for at least a year at the time of assistance.
• There are no income restrictions.
• The program is a 1:1 match up to $10,000.
• Eligible Buyers must occupy the home as their principal residence.
• The interest-free loan is forgiven over 10 years if the employee occupies their home.
• Funding is restricted to homes purchased within a prescribed area for Flagstaff emergency employees.
• Eligible buyers must be first-time Flagstaff homebuyers.
• Eligible buyers must complete an online homebuyer education course and one-on-one housing counseling through HSNA prior to closing on their home.
• Loan assistance is recorded in the second position behind the primary mortgage.
• Administrative fees to HSNA are $1,250 per loan, paid at the point of closing.

If approved by City Council, the amendment will clarify that months of service in a contract employee position count toward the 12-month employment requirement once the employee transitions to a permanent position funded with ongoing funds. 
 

 None.

COF-EAH focuses on a stable local workforce and a healthy economy. Employee assisted housing enhances employee recruitment, employee retention, neighborhood revitalization, and community relations.

Mortgage lenders, realtors, employers, social service agencies and the community at large greatly contribute to, and benefit from, the success of housing assistance programs; again, providing stability for our community.

Initial notification of the original RFP was provided through PlanetBids. The RFP in the Arizona Daily Sun on July 8 and July 15, 2018.  The RFP was issued on July 5, 2018, and due on July 26, 2018.  HSNA was the only respondent and was deemed the successful bidder.  No additional public outreach has occurred following the contract award.

To date, thirteen (13) City of Flagstaff employees who were first time Flagstaff homebuyers benefited from the COF-EAH. Currently, there are three (3) City of Flagstaff employee households under contract to purchase planning to utilize COF-EAH.