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Community Development Agency <br />www.santa-ana.org/community-development <br />Item # 4 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />June 4, 2024 <br />TOPIC: Rent Reasonableness Software <br />AGENDA TITLE <br />Agreement with Nan McKay & Associates, Inc. for Rent Reasonableness Software for <br />Housing Choice Voucher Program <br />RECOMMENDED ACTION <br />Authorize the Executive Director of the Housing Authority to execute an agreement with <br />Nan McKay & Associates, Inc. to provide reasonable rent determination software for the <br />Housing Choice Voucher Program in an amount not to exceed $75,000 for a three-year <br />term beginning July 1, 2024, through June 30, 2027, with an option of two ,one-year <br />extensions (Agreement No. A-2024-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />The Housing Authority of the City of Santa Ana (SAHA) is required to conduct a <br />reasonable rent comparison whenever a voucher holder moves into a new unit (at initial <br />occupancy) or whenever the owner requests a rent increase. Specifically, no Housing <br />Assistance Payment Contract can be approved until SAHA has determined that the rent <br />for the unit is reasonable. The purpose of the rent reasonableness test is to ensure that <br />a fair rent is paid for each unit rented under the Housing Choice Voucher (HCV) <br />program. The regulations define a reasonable rent as one that does not exceed the rent <br />charged for comparable, unassisted units in the same market area. HUD also requires <br />that owners not charge more for HCV-assisted units than for comparable units on the <br />premises. To comply with this requirement, SAHA contracts for online software to <br />conduct reasonable rent comparisons. SAHA is unable to manage and maintain local <br />data on current rents because of the constant changes in rent in the private market and <br />SAHA does not have the staff capacity to monitor rental listings and pull information <br />continuously to ensure rent comparisons can be completed accurately. <br />For this purpose, SAHA issued a Request for Proposals (RFP # 24-040A) for Rent <br />Reasonableness Software for Federal Housing Programs. Responses to the RFP were <br />accepted until April 11, 2024. The City received responsive bids from Nan McKay & <br />Associates, Inc., and The Nelrod Company. The bids and cost for services from both <br />vendors were reviewed by three employees from the Housing Authority. The bid from <br />Nan McKay & Associates, for the AffordableHousing.com software is being <br />recommended for approval based upon several factors, including, but not limited to, the <br />