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File #: 25-4286    Version: 1 Name:
Type: Consent Item Status: Agenda Ready
File created: 10/9/2025 In control: BOARD OF SUPERVISORS
On agenda: 10/21/2025 Final action:
Title: Acting as the governing board of the Contra Costa Housing Authority, ACCEPT the evaluation panel recommendation and AUTHORIZE the Housing Authority Executive Director to execute a contract with Zen Development Corporation and Structure Development Advisors, LLC, in an amount not to exceed $158,000 to provide financial consulting services for the Housing Authority’s Portfolio Refinance and Repositioning, Capital Improvement, and New Construction Plan for the period October 22, 2025 to October 22, 2027, with an option to extend one year. (Budgeted)
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To:                                          Contra Costa County Housing Authority Board of Commissioners

From:                                          Joseph Villarreal, Executive Director

Report Title:                     ACCEPT THE RECOMMENDATION OF THE SELECTION PANEL FOR REQUEST FOR PROPOSALS NO. RFP-25127-328, PUBLIC HOUSING REPOSITIONING FINANCIAL CONSULTANT SERVICES, AND AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT  WITH ZEN DEVELOPMENT CORPORATION AND STRUCTURE DEVELOPMENT ADVISORS LLC. IN AN AMOUNT NOT TO EXCEED $158,000 TO PROVIDE FINANCIAL CONSULTING SERVICES FOR THE HOUSING AUTHORITY’S PORTFOLIO REFINANCE AND REPOSITIONING, CAPITAL IMPROVEMENT, AND NEW CONSTRUCTION PLAN

Recommendation of the County Administrator Recommendation of Board Committee

 

RECOMMENDATIONS:

Accept the recommendation of the evaluation panel for RFP No. RFP-25127-328, Public Housing Repositioning Financial Consultant Services, and authorize the Executive Director to enter into a contract with Zen Development Corporation (“ZDC”) and Structure Development Advisors LLC (“Structure”) in an amount not to exceed $158,000 to provide financial consulting services for the Housing Authority’s Portfolio Refinance and Repositioning, Capital Improvement, and New Construction Plan.

 

BACKGROUND:

For decades, federal funding for the public housing program has been inconsistent and insufficient to meet the capital and operating needs of agencies nationwide. HACCC, like many housing authorities, faces a significant backlog of capital improvements and a lack of stable resources to ensure the long-term sustainability of its public housing portfolio. The repositioning of the Las Deltas Public Housing development demonstrated the value of leveraging federal repositioning tools to preserve affordable housing opportunities while unlocking new resources for redevelopment. Following that success, HACCC now seeks to apply similar strategies across its broader public housing portfolio to ensure that units remain viable, safe, and affordable for the families we serve.

To support this work, HACCC issued RFP No. RFP-25127-328 seeking a qualified financial and development consultant to assist in developing and implementing a Portfolio Refinance and Repositioning, Capital Improvement, and New Construction Plan. The selected consultant will evaluate HACCC’s portfolio, analyze feasible repositioning options (including RAD, Section 18 disposition, voluntary conversion, and Faircloth-to-RAD), and recommend strategies that best meet the agency’s long-term sustainability needs. The consultant will also provide financial modeling, guide HACCC through HUD-required milestones, and support communications with HUD, funders, and stakeholders.

HACCC received eight proposals in response to the RFP. After review and scoring, the two highest-ranked firms were invited to interviews. Following interviews and final scoring, the evaluation panel recommended ZDC and Structure as the most qualified team.

ZDC and Structure have a strong track record of helping clients reposition affordable housing assets. Structure is an expert in HUD programs and public housing repositioning, having helped dozens of clients reposition their assets and portfolios, and ZDC is an expert in California affordable housing, including complicated rehabilitation projects using low-income housing tax credits and tax-exempt bonds. Additionally, Forward City Labs, a certified DBE, SBE and MWBE enterprise, will be a subcontractor to perform a land use study to determine if there is development potential on any of the 11 sites, or whether existing zoning allows for additional units to be added through the repositioning.

ZDC and Structure will collaborate on this engagement with their respective expertise and working relationship from past engagements as the foundation for delivering the Repositioning Plan to HACCC. Their plan includes an analysis of the properties and potential repositioning pathways to determine financially feasible outcomes for each property or groupings of properties, and a presentation of their findings along with the considerations, which may include advantages or disadvantages related to timing, process, and economics for HACCC. The Repositioning Plan will include recommendations to HACCC for the best strategy for each property, or grouping of properties, that result in the optimal financial outcome for HACCC as well as for the tenants. It will also include a budget, timeline, and resource requirements from HACCC to implement the Repositioning Plan.

 

FISCAL IMPACT:

Phase 1 deliverables (research repositioning options, draft a final plan, and presentations) will be funded through HACCC’s existing operating and/or planning funds. The consultant team provided a total deliverables cost of $158,000 for Phase 1. Depending on the Implementation Plan and/or ZDC and Structure’s performance on Phase 1, HACCC may expand the consultant team or procure affordable housing developers to develop projects that are in the Implementation Plan (Phase 2) which will require added procurements. Phase 2 (the implementation phase), if pursued, will be negotiated based on the hourly rates provided in ZDC and Structure’s proposal and will be subject to available funds from federal, state, and local sources.

 

CONSEQUENCE OF NEGATIVE ACTION:

If the Board does not accept the recommendation of the evaluation panel for RFP No. RFP-25127-328, Public Housing Repositioning Financial Consultant Services, and authorize the Executive Director to enter into a contract with Zen Development Corporation (“ZDC”) and Structure Development Advisors LLC (“Structure”) in an amount not to exceed $158,000 to provide financial consulting services for the Housing Authority’s Portfolio Refinance and Repositioning, Capital Improvement, and New Construction Plan authorize contracting with ZDC and Structure, HACCC would need to revisit other proposers or reissue the solicitation, resulting in delays to the development of the Repositioning Plan and slowing HACCC’s ability to strategically reposition its public housing portfolio.