It is recommended that the Mayor and City Commission approve the Resolution authorizing the Administration to establish a pool of pre-qualified contractors eligible to participate in the City’s HOME Investment Partnerships Program (commonly referred to as the “HOME Program”), a federally funded program for improving affordable housing. The Resolution recommends approval of the initial pool of prequalified contractors, Fikon, Corp and The Bannerman Group, Inc., and authorizes the Administration to keep the ITB open to prequalify additional contractors. The Resolution also delegates to the City Manager the authority to add contractors to the pool, provided such contractors meet the requirements of the ITB, or remove contractors for non-performance. 

This solicitation is currently under the cone of silence.

The City of Miami Beach is designated by the U.S. Department of Housing and Urban Development (HUD) to receive an annual allocation of HUD funding through the HOME  Program. The HOME Program supports the creation and retention of affordable housing to benefit low-income persons. During FY 20 and FY 21, the City committed its annual allocations to homeowner programs, including homeowner rehabilitation to existing homeowners within City limits. The program can award up to $40,000 per homeowner rehabilitation. Pursuant to the City’s Annual Action Plan, $557,579.70 has been allocated for HOME program expenditures for the fiscal year 2021.

The Office of Housing and Community Services (HCS) administers the HOME Program funds, participant eligibility, contractor eligibility, and program compliance. HCS determines the eligibility for all applicants by assessing income and property standards. All awards are disbursed via a deferred payment loan, secured by a mortgage agreement with a restrictive covenant and promissory note for fifteen (15) years.

The City also participates in the State Housing Initiatives Partnership Program (SHIP) Program.  On January 17, 2018, the Mayor and City Commission adopted a policy governing the selection of contractors for construction projects awarded by the City pursuant to the (SHIP) Program. Approving and authorizing the Administration to establish and maintain a pool of qualified contractors; and authorizing the City Manager to approve bids and execute agreements with the pre-qualified contractors for project award limit authorized by the City’s Local Housing Assistance Plan. 

The HOME Program varies from the SHIP program in the following ways:  1) The eligible homeowner income limits and rehabilitation award amounts are less with the HOME Program than with the SHIP Program; 2) the rehabilitation services that are eligible are also more limited as part of the HOME Program; 3) the rehabilitation project awards are limited to $40K with the HOME Program versus $70K with the SHIP Program; 4) the HOME Program has specific requirements for the project’s rehabilitation standards.

Contractors seeking to participate in the City’s Housing Rehabilitation Program must be prequalified through the City’s contractor prequalification process. The City will prequalify an initial pool of contractors and keep the solicitation open to prequalify additional contractors interested in submitting their application for the City’s consideration. Contractors must maintain the City’s licensing, insurance, and qualifications to be prequalified for future projects awarded through this procedure.

The City of Miami Beach seeks applications from qualified contractors to establish a prequalified pool of contractors for the future competition of rehabilitation projects in accordance with the HOME Program, which shall ensure homeowners have access to qualified contractors for all owner-occupied repairs; ensure that projects are awarded in a competitive manner that maximizes available funds; ensure homeowners have a platform for performance evaluation of contractors; ensure contractors have a clear guideline to complete the work and receive timely payments; ensure contractors comply with the Building Department, Code Compliance and insurance requirements.

On December 8, 2021, the Administration issued ITB 2022-053-WG for Contractor Prequalification for Home Investment Partnership Program (HOME) Rehabilitation Projects. ITB responses were due and received on December 28, 2021. The City received applications from the following three firms: Fikon, Corp, The Bannerman Group, Inc., and Kitchen Gallery and Design, Inc.

The ITB stated that following the review of applications, the responsive and responsible bidder(s) meeting all terms and conditions of the ITB will be recommended for award. In its due diligence, the Administration has determined that two (2) bidders met the requirements of the ITB. Accordingly, Fikon, Corp and The Bannerman Group, Inc., have been deemed responsive, responsible bidders meeting all terms and conditions of the ITB and are recommended for award. 

The firm Kitchen Gallery and Design, Inc. failed to produce evidence of meeting the minimum experience requirements. Therefore, its application cannot be considered for the award with the initial pool of vendors.  However, the firm was advised that it may resubmit its applications at a later date to be considered in a subsequent addition of contractors to the pool.

The pool of prequalified contractors for the future competition of rehabilitation projects in accordance with the HOME Investment Partnership Program (HOME) will ensure homeowners have access to qualified contractors for all owner-occupied repairs and that projects are awarded in a competitive manner that maximizes available funds. The program can award up to $40,000 per homeowner rehabilitation project. Pursuant to the City’s Annual Action Plan, $557,579.70 has been allocated for HOME program expenditures for the fiscal year 2021.

I concur with staff that it is in the best interest of the City to have a pool of prequalified contractors for the future competition of rehabilitation projects in accordance with the HOME Program. The HOME Program shall ensure eligible homeowners have access to qualified contractors for all owner-occupied repairs; ensure that projects are awarded in a competitive manner that maximizes available funds; ensure homeowners have a platform for performance evaluation of contractors; and ensures contractors comply with the Building Department, Code Compliance and insurance requirements. In order to continue to maximize competition by continuing to add contractors,

I recommend that the period for submitting applications be extended to be consistent with the term of the contract. New applicants that meet the ITB requirements will be added to the pool. Contractors that do not perform well will be removed from the pool.

Therefore, I recommend that the Mayor and City Commission of the City of Miami Beach, Florida, approve the Resolution, accepting the recommendation of the City Manager, pursuant to Invitation to Bid (ITB) No. 2022-053-WG, to establish a pool of contractors seeking to participate in the City’s managed HOME Program and approving the initial pool of qualified contractors: Fikon, Corp and The Bannerman Group, Inc. and further, authorizing the City Manager to keep the ITB open for the purpose of prequalifying contractors and delegating to the City Manager the authority to add contractors to the pool, provided such contractors meet the requirements of the ITB.