Financial Partner Services

The Vendor is required to provide to serve as the financial services partner for the city’s affordable housing fund.
- Financial Services Partner will assist the City in refining and launching the Program and will provide ongoing financial administration services including application management, underwriting and risk analysis, portfolio servicing, reporting and financial compliance.
- The City currently envisions contracting with multiple entities under a split-roll administrative model in which the Financial Services Partner is responsible for the financial and transactional dimensions of the fund (revenue provided by Short-Term Rental Tax, approximately $15 million annually), while Program compliance functions, including deed restriction administration, income qualification, occupancy verification and ongoing compliance monitoring, are anticipated to be assigned to a separate entity.
- The City seeks to allocate the Affordable Housing Fund strategically, with a goal of maximizing the affordability benefits achieved for the community. Fund investments will be subject to a minimum Fund balance, intended to maintain an operational buffer
- The Affordable Housing Fund generated approximately $15 million in revenue in 2025, with a current Fund balance of approximately $22 million. Revenue levels will fluctuate over time based annual variability in Short-Term Rental Tax collections.
- City investments in individual deals are expected to range from several hundred thousand dollars to over ten million dollars.
- To date, the City has had a primary role cultivating funding applications, including direct assistance to applicants as they develop full applications, to ensure comprehensiveness and improve application quality. The City Council Housing Sub-Committee serves as a preliminary review body and sounding board to provide early input on an application’s funding prospects and key areas of concern and will continue in this role into the future.
- The City will retain all investment decision authority through at least the first year of the engagement. The City may progressively delegate approval authorities for standard transactions to the Financial Services Partner under a hybrid model in subsequent years. Larger, more complex, or non-standard transactions are expected to require City approval throughout the engagement.
- This task is expected to be most intensive at the outset and continue as the Program matures. Services include advising on Program structure and investment product design across all eligible instrument types, recommending underwriting standards and procedures that balance rigor with the efficiency needed to meet development timeframes; advising on portfolio strategy including funding targets, risk tolerances, and balancing early-stage vs late-stage investments; reviewing and refining standardized application materials and evaluation criteria; and supporting program-related presentations to the board or commission, city council, or other stakeholders as needed.