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AGENDA REPORT
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| | | | | | | | DATE:
| October 19, 2021
| TO:
| Fairfield Housing Authority Chair and Commissioners
| FROM:
| Stefan T. Chatwin, Executive Director
| | SUBJECT: | Resolution HA2021-12 of the Fairfield Housing Authority Approving the Consultant Services Agreement Between the Fairfield Housing Authority and CSG Advisors for Real Estate Financial Consulting Services, and Authorizing Certain Related Actions |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | The Housing Services Department (“HSD”) will review and analyze the development potential of several sites throughout the city of Fairfield. Some of the sites will be City of Fairfield or Fairfield Housing Authority (“FHA”) owned. CSG Advisors (“CSG”) will assist staff in assessing these sites' development potential and creating feasibility analyses. CSG will also help staff complete funding applications and other financial consulting services as needed. |
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| | | | | | | | | DISCUSSION | The HSD is in the process of forming guidelines for several housing initiatives, including but not limited to creating development guidelines for proposed affordable housing developments, establishing a housing trust fund, preparing to issue notices of funding availability, establishing bond issuance guidelines, and creating an infill housing development plan. CSG will be instrumental in assisting in all areas of these plans and documents.
Since the HSD considers various development scenarios for development sites, a financial feasibility analysis and multiple funding sources for each specific development project are critical. The initial site under evaluation is the Sem Yeto site at 421 Madison Street, Fairfield. This site is located within the Heart of Fairfield Specific Plan Area and has been identified as one of nine catalytic sites within the planning area. HSD staff will be working with CSG to develop a preliminary development plan that will focus on the feasibility of market-rate homeownership units with a small percentage of the housing to be affordable to first-time low to moderate-income homebuyers.
CSG is a national, full-service, independent financial adviser that assists public finance clients in designing, financing, and implementing affordable housing, urban redevelopment, and economic development initiatives. CSG offers wide-ranging national expertise in finance solutions for housing, real estate, development, and infrastructure. CSG has extensive national knowledge in financing solutions with more than 2,500 transactions and $80 billion in public financing. They have represented 29 state housing finance agencies and more than half of America’s 50 largest cities. CSG and its predecessors have provided financial advisory services to housing finance agencies throughout the United States for over 50 years.
CSG has been providing the HSD some of the services listed above over the past year. The current Consultant Services Agreement they are working under expires on October 26, 2021. The HSD is embarking on several new initiatives, as described earlier, and will require a higher level of services from CSG. The proposed agreement will allow the HSD to continue working on these housing initiatives and seamlessly continue using the advisory services of CSG.
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| | | | | | | | | FINANCIAL IMPACT | | The proposed agreement is for $100,000 for one year with the option to renew on an annual basis, up to three years. The agreement will be charged to the Low Mod Income Housing Assets Fund (Fund 022, Division and Responsibility Code-36-001). |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
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| | | | | | | | | ALTERNATIVE ACTION | | The FHA could decide not to approve the proposed agreement. However, this would delay implementing development plans for the catalytic site at 421 Madison Street in the Heart of Fairfield and hinder HSD in developing housing guidelines and strategies for various programs planned for the department. |
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| | | | | | | | | STAFF CONTACT | Jesus M. Morales, Senior Housing Project Manager
(707) 428-7426
jmorales@fairfiled.ca.gov
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| | | | | | | | | COORDINATED WITH | City Attorney's Office, Finance Department
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| REVIEWERS: | | Reviewer | Action | Date | | Jones, LaTanna | Approved | 10/4/2021 - 8:35 PM | | Alexander, Amber | Approved | 10/5/2021 - 12:02 PM | | Alexander, Amber | Approved | 10/5/2021 - 12:05 PM |
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