Indianapolis Housing Agency
Request for Proposal
Bad Debt Collection
And Related Legal Services
November, 2016
11
Introduction
Indianapolis Housing Agency (IHA), located at 1919 N. Meridian Street, Indianapolis, Indiana, owns and/or has certain jurisdiction over 22 Marion County affordable housing communities, 14 of which are managed by IHA directly. Six of these communities are in Center Township, with the rest scattered throughout the rest of the county. These sites comprise 2,624 total dwelling units, including public housing units, Low Income Housing Tax Credit units, Project Based Section 8 units and market-rate units. Many of IHA’s communities operate under multiple state or federally-regulated programs. IHA also administers 7,263 Section 8 units leased under HUD’s Housing Choice Voucher Program.
IHA is governed by a nine-member Board of Commissioners. Five of the nine Board members are appointed by the Mayor of the City of Indianapolis, two Board members are appointed by the City/County Council and two members are elected as representatives for the Family and Senior community sites. The Agency’s day-to-day operations are directed by the Agency’s Executive Director. The Agency is primarily funded through the United States Department of Housing and Urban Development.
With approximately 140 employees, the Agency administers its programs with an operating budget of approximately $64 million per year and a total budget of approximately $68 million per year.
The IHA mission is to “provide safe, decent, sanitary and affordable housing for eligible low-income families and individuals.” As a special agency of the City of Indianapolis, the Agency conducts its own procurement, financial and other operations. The Agency reports its financial activities on a calendar year basis.
Objective
The objective of issuing this Request for Proposal (RFP) is to select one provider of Debt Collection and Related Legal Services in an attempt to collect outstanding monies for IHA owned and/or managed properties and programs.
In accordance with applicable provisions of state and federal regulations, IHA is accepting proposals for Debt Collection and Related Legal Services for a one year period to be established upon contract award and subject to renewal. All debt collection and related legal services must be provided in accordance with applicable rules, orders, directed, and regulations promulgated by the United States Department of Housing and Urban Development (HUD), Fair Debt Collection Practices Act (“FDCPA”), and all other legal statutes and requirements. The proposer must be either a law firm licensed to practice law in the State of Indiana or a collection agency which employs an Indiana licensed attorney or attorneys.
IHA currently has in excess of $3.5 million in approximately 1500 accounts noted as “bad debt.”
Scope of Services
Program Areas Wherein the IHA Typically Experiences "Bad Debt":
Market Rate and Affordable Housing Programs:
The IHA collects monthly rent payments from residents residing in its units owned and/or managed by IHA. Most residents are participants in a low income subsidized or affordable housing program. At times, these persons may vacate the unit without paying all the monies owed (i.e. rental; repairs; etc.). The IHA attempts to collect any outstanding monies which may be due and owing. Approximately every three months the IHA obtains permission from its Board of Commissioners to "write-off" such uncollected monies. The monies owed for these "write-off" accounts are what the successful proposer is to attempt to collect.
Further, IHA may receive a judgment against a former resident as part of a judicial eviction action. The successful proposer will attempt to collect on those judgments through appropriate remedies of the Court. Further, the successful proposer will be responsible for notifying the Court of payments, satisfaction and/or settlement of the judgment.
Housing Choice Voucher Program (HCVP) Landlords:
HUD provides funding through the IHA to provide rental assistance to low-income families through the Housing Choice Voucher Program (HCVP), also known as the Section 8 program. The IHA enters into Housing Assistance Payment contracts (HAP) with owners of private properties to provide housing assistance. At times, circumstances, such as a family leaving a unit without notification, may result in the owner receiving overpayments from the IHA. In such cases, the IHA may be unable to recapture those funds or the owner does not respond to the notices, then the IHA may assign such cases to the successful proposer to collect those overpaid funds.
HCVP Rents:
Periodically, some participants (residents) under the HCVP programs may have their lease terminated due to their failure to report accurate income. If the IHA is unable to collect any delinquent rental funds due and owing, then these may be assigned to the successful proposer.
Contractor Obligations
The successful proposer shall be responsible to:
1. Address only those accounts that the IHA assigns to the successful proposer. When directed, cease work on and return all documentation pertaining to any account that may have been previously assigned.
2. Deposit in a timely manner in a separate trust account any collections completed on behalf of the IHA; distribution shall be completed in a timely manner, at least once per month, in the format established by IHA.
3. Deliver at least once per month a report detailing the current status of the account, including a brief recap of the successful proposer's efforts to collect the funds, in a format agreed upon by the IHA. Further, the successful proposer shall include an itemized statement of collections and receivables report showing the accounts, amount billed, and current balances due, at a minimum. At bid submission, the proposer should provide a sample of the monthly reports and itemized statement to be generated.
4. Maintain appropriated accounting records, including auditable financial records for a minimum of three (3) years form the end of the contract period.
5. Perform necessary notification to the credit reporting agencies to update or change information for assigned account if deemed appropriate by the IHA. Provide the IHA will confirmation of the update/change. Upon termination of contract, the Proposer will cancel all files at any and all credit reporting agencies.
6. Not initiate any legal action pertaining to any account without the prior written permission of the IHA.
7. Ensure that all records pertaining to any current or past accounts assigned is immediately, upon request, available for audit by the IHA or its authorized representative.
8. Guarantee the confidentiality, security and safety of all files, documentation, electronic submissions, etc.
9. Proposer shall provide IHA timely copies of any pleadings in matters referred to an attorney which result in filing of any judicial process.
All collection referrals to the proposer from IHA are subject to the provisions of the initial contract without the need for a new contract or agreement for each assignment. At all times when addressing the assigned accounts, the collection efforts shall be conducted in accordance with applicable rules, orders, directed, and regulations promulgated by the United States Department of Housing and Urban Development (HUD), Fair Debt Collection Practices Act (“FDCPA”), and all other legal statutes and requirements. IHA reserves the right to audits assigned accounts upon 24 hour notices to the proposer.
Fee Structure
All fees for postage, telephone calls, use of third party entities to perform research, re-assignment of accounts, reporting or correspondence with credit agencies, or similar activities shall be included in the successful proposer’s fee structure and shall not be billed as a separate fee.
Most cases for collection will be assigned to the successful proposer after the IHA has attempted to collect the outstanding debt through demands for payment. For such cases, the IHA will then cease its efforts to collect the delinquent payments and will assign the case to the successful proposer for an initial minimum period of 90-days. Once such a case has been assigned to the successful proposer, if the delinquent party pays directly to the IHA in response to the IHA's previous attempts to collect, the delinquent monies, the IHA shall not be responsible to pay to the successful proposer a commission on such cases, but will pay to the successful proposer an administrative fee for the successful proposer to return the case (this administrative fee is one of the proposed fees that must be submitted by the proposer). If the delinquent party pays directly to the successful proposer rather than to the IHA, the contracted fee structure will be in effect.
Qualifications
The successful proposer must meet the following criteria at a minimum or the proposal will be deemed non-responsive and rejected on that premise:
1. The proposer must be properly licensed and insured.
2. The proposer must comply with all aspects of the scope of work.
3. The proposer must demonstrate the ability to practice law in the required jurisdictions or demonstrate through partnership agreement the ability to comply with related legal services scope of work.
4. The proposer must not be debarred by any federal, state, or local agency.
5. The proposer must be either a law firm licensed to practice law in the State of Indiana or a collection agency which employs an Indiana licensed attorney or attorneys.
6. The proposer must submit documentation confirming its ability to comply with applicable rules, orders, directed, and regulations promulgated by the United States Department of Housing and Urban Development (HUD), Fair Debt Collection Practices Act (“FDCPA”), and all other legal statutes and requirements.
Conditions
IHA has set the following conditions:
1. A fully executed contract will be required. Sample available on the “Doing Business With IHA” page of the Agency’s website (www.indyhousing.org).
2. The contract is effective for one (1) year, with an option to renew for four (4) subsequent year, for a potential total of up to five (5) years.
3. The IHA reserves the right to reject any and all proposals, and to waive any minor informalities and/or irregularities in the RFP process. The IHA shall be the sole judge of these minor informalities and/or irregularities. Late submissions do not constitute a minor informality or irregularity. .
4. A proposal will be deemed as non-responsive if a significant portion of the requested information is omitted.
5. No minimum or maximum contract hours is stated or implied.
6. The IHA reserves the right to negotiate with one or more vendors, and may, as a result of the RFP evaluation process, enter into a “best and final” negotiation with one or more vendors.
7. The IHA reserves the right to request an interview with any and/or all of the responders in order to finalize any decisions.
8. Successful applicant must be able to initiate contract on or about December 1, 2016.
9. The IHA will consider non-responsive any submittal that lacks critical information or deviates substantially from the RFP requirements.
10. The IHA reserves the right to request additional information from any responder after the submittal deadline.
11. Any solicitation or lobbying directed at any IHA staff, commissioner, or agent is prohibited and may be grounds for the disqualification of the proposal.
12. The responder shall state earliest possible start date from “Notice to Proceed.”
13. The responder shall provide a rate schedule to include fees, reimbursable costs, profit, and overhead. HUD Handbook 7460.8, Rev.2. requires this information and it will be deemed confidential and for use by the IHA staff only.
14. The signer of the proposal must have the requisite authorization to commit the applicant and to conduct negotiations or discussions if deemed necessary by the IHA.
15. The IHA assumes no liability for any costs incurred by responders in the preparation and delivery of a proposal in response to this RFP, or attendance of any subsequent meetings relative to responding to this RFP.
16. The responder shall provide proof of current insurance to include, but not limited to, general liability, errors and omissions, vehicular liability and workers’ compensation.
Content of Response
Most forms are available on the “Doing Business With IHA” page of the Agency’s website (www.indyhousing.org) or through the HUD’s website at www.hudclips.gov.
All proposal copies shall include the following items in the order presented and tabbed as such:
1. A letter of interest
2. Methodology in support of the RFP following grading points as presented.
3. MBE/WBE/DBE certification, where applicable
4. Copies of current insurance showing errors and omissions, general and vehicular liability and workers’ compensation
5. Descriptions of the following:
· Your firm and its areas of expertise.
· The decision making authority of the local office and its relationship to national, regional, or other headquarter offices of your firm.
· Your relevant work with government organizations.
6. Contact name, title, company name, business type, address, phone number, e-mail address and a description of the products and/or service(s) provided for up to five references for Davis Bacon tracking softwareworkost similar to the IHA.
7. Completed Certificate of Non-Organizational Conflict of Interest (On IHA website)
8. Completed Non-Collusive/Non-Identity of Interest Affidavit (On IHA website)
9. Completed Certificate of Non Segregated Facilities (On IHA website)
10. Completed HUD-5369 B (On IHA website)
11. Completed Section 3 Plan (On IHA website)
12. Completed E-Verify Affidavit (On IHA website)
13. MBE/WBE/VBE/DOBE Contractors Initial Response Form (on IHA website)
14. Analysis of fees by type of service included (Fee Tab Sheet: part of RFP)
Omission of any of the aforementioned documents, certifications or requested information will render the proposal non-responsive.
Please Note: If a firm is unable to provide a requested item or is professionally limited by professional rules or codes of conduct, please indicate the conflictand detail a thoroughexplanation for thescoring committee's consideration.
Proposal Contents and Form
Proposals must be limited to 8.5 x 11” pages with one inch margins, excluding cover letter (limited to 2 pages). Proposals shall be indexed and tabbed as to content. Proposals must be signed in ink by an authorized member of the firm submitting the proposal, including a statement that the information provided is true, correct, and reliable for purposes of evaluation for potential contract award. Proposals should be submitted in a sealed package, clearly marked on the outside of the package “Proposal for Payroll Services”, along with the respondent firm’s name.