To be considered for this assignment, candidates must meet the following criteria:

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1 July 5, 2011 Dear Interested Party: Re: REQUEST FOR QUALIFICATIONS (RFQ) HOUSING COUNSELING SERVICES The Connecticut Housing Finance Authority ( CHFA ) requests written qualifications for housing counseling services from HUD-approved housing counseling agencies with an office in the State of Connecticut. CHFA will not reimburse for any expenses incurred in connection with this RFQ including, but not limited to, the cost of preparing the initial response and any additional information requested or travel expenses relating to an oral presentation. Please be advised that responses will be considered property of CHFA and are matters of public record. OVERVIEW CHFA, a body politic and corporate constituting a public instrumentality and political subdivision of the State of Connecticut, was created in 1969 and operates pursuant to Chapter 134 of the Connecticut General Statues, as amended. Our purpose is to help alleviate the shortage of affordable housing for low- and moderate-income families and persons in Connecticut by providing both single family mortgages and financing for rental housing, and mortgages for the purchase, development and construction of housing. For additional financial information, please reference CHFA s website at SCOPE OF SERVICES CHFA is seeking the services of qualified U.S. Department of Housing and Urban Development (HUD) Approved Housing Counseling Agencies to provide several types of counseling to first-time homebuyers and homeowners throughout the state. Specifically, qualifications are sought for: 1. Eight hour homebuyer education classes and individual financial and credit counseling for individuals or families who have not entered the home buying process 2. Three hour pre-purchase homebuyer education classes for individuals and families who are in the process of obtaining a Down Payment Assistance (DAP), Homeownership Program or Home of Your Own Program loans through CHFA 3. Foreclosure prevention counseling for CHFA s borrowers who are 60 days delinquent on their mortgage loans 4. Foreclosure prevention counseling including individual counseling and foreclosure prevention clinics 5. Financial Fitness counseling for CHFA s CT FAMLIES Program and clients participating in the Mortgage Crisis Job Training Program (MCJTP). 6. Counseling under CHFA s Urban Rehabilitation Loan (UR Home), 203K and 203K Streamline Programs. To be considered for this assignment, candidates must meet the following criteria: 1. The organization must be a HUD Approved Housing Counseling Agency. 2. The organization must be authorized to do business in and have an office in the State of Connecticut. 3. The organization must have experience in conducting homebuyer education, individual financial and credit counseling, foreclosure prevention counseling and/or financial fitness training. 4. The organization must have knowledge of CHFA s single family loan products and requirements. 5. The organization must have documentation evidencing adoption of the National Industry Standards for Homeownership Education and Counseling. 1

2 Request for Qualifications: Housing Counseling Services: SCOPE OF SERVICES Eight Hour Homebuyer Education Classes and Individual Finance and Credit Counseling Services: CHFA will select qualified agencies to conduct a series of classes geographically distributed throughout the state. Program information on the CHFA Singe Family Loan Program may be found at aspx. Qualifications are sought for a series of classes and individual counseling statewide. Each selected agency will be responsible for: 1. Providing homeowner education classes to prepare potential borrowers for homeownership. The class curriculum should be eight hours in length. 2. Delivering curriculum that covers many areas of becoming a successful homeowner; ensuring that the objectives on page 3 are met. 3. Scheduling classes in advance and providing notice to CHFA, within the required guidelines, of date, time, contact person, location, including directions to classes. 4. Conducting classes at a conveniently located, handicapped-accessible facility, which can accommodate a maximum of 25 people at tables or desks. If possible, the site should be accessible by mass transportation. 5. Providing course materials to all attendees at no cost. Materials must be easily understood and available in different languages and sensitive to cultural diversity. Classroom presentation should incorporate visual materials, including a PowerPoint presentation. 6. Providing certificates of course completion or other evidence of counseling through paperless tracking system for all clients who have successfully completed the training. 7. Providing individual financial and credit counseling and assistance to potential homeowners in preparation to purchase a home. Ensure homeowners are aware of CHFA s loan products. Counseling agencies should have the ability to run credit reports at no charge to the client. 8. Assisting in the advertising and recruitment of class participants in your geographic area. 9. Maintaining appropriate documentation, files, and reporting as outlined by CHFA and HUD. 10. Using Home Counselor On-Line, or other system designated by CHFA, as a means to track the clients who attend classes and receive counseling to determine if homeownership is achieved or an estimate of the amount of time needed to obtain homeownership. Report to CHFA, either electronically or manually, as required. 11. Participating in quarterly meetings at CHFA to discuss the program and other meetings, as required. 12. Provide one follow-up session, as requested by homeowner, within 6 months of attending class. Results will be reported on Home Counselor On-Line, or other system designated by CHFA. 2

3 OBJECTIVES FOR POTENTIAL HOMEBUYER EDUCATION CLASSES Determining if homeownership is right for you o Understanding the pros and cons of homeownership o Preparing for homeownership Developing a budget and understanding credit o What do you spend money on and what do you save? o What is credit, FICO scores? o How to obtain a credit report o Budgeting to meet your needs What is a mortgage and how does a potential homeowner secure one? o Understanding different mortgage loans, including CHFA s Home Mortgage Program o How to choose a mortgage loan o Understanding the loan process, including mortgage documents o Understanding how to avoid predatory lending practices Selecting a homebuyer team and understanding their responsibilities o The process of purchasing a home, including who and what they need to know Protecting your investment o Understanding how to maintain and repair your home, including green technology information o Understanding how to maintain your finances o Understanding loss mitigation and foreclosure prevention o Understanding refinancing, avoiding Mortgage Scams Other objectives you feel are appropriate 3

4 SCOPE OF SERVICES - Three Hour Pre-Purchase Education Classes: CHFA will select qualified agencies to conduct three hour classes for borrowers who are in the process of obtaining Down Payment Assistance (DAP), Homeownership (HO) and Home of Your Own (HOYO) Program loans, geographically distributed throughout the state. CHFA Program information may be found at aspx. Qualifications are sought for a series of classes statewide. Each selected agency will be responsible for: 1. Providing homeowner education classes to prepare CHFA DAP, HO and HOYO borrowers for homeownership. The class curriculum should be three hours in length. 2. Delivering curriculum that covers many areas of becoming a successful homeowner; ensuring that the objectives on page 5 are met. 3. Scheduling classes in advance and providing notice to CHFA, within the required guidelines, of date, time, contact person, location, including directions to classes. 4. Conducting classes at a conveniently located, handicapped-accessible facility, which can accommodate a maximum of 25 people at tables or desks. If possible, the site should be accessible by mass transportation. 5. Providing course materials to all attendees at no cost. Materials must be easily understood and available in different languages and sensitive to cultural diversity. Classroom presentation should incorporate visual materials, including a PowerPoint presentation. 6. Providing certificates of course completion or other evidence of counseling through paperless tracking system for all clients who have successfully completed the training. 7. Maintaining appropriate documentation, files, and reporting requirements outlined by CHFA and HUD. 8. Using Home Counselor On-Line, or other system designated by CHFA, as a means to track the client who attend classes and receive counseling. Report to CHFA, either electronically or manually, as required. 9. Participating in quarterly meetings at CHFA to discuss the program and other meetings, as required. 4

5 OBJECTIVES FOR THREE-HOUR HOMEBUYER EDUCATION CLASSES Advantages and Disadvantages of Homeownership Who is the Connecticut Housing Finance Authority? o DAP Program, Homeownership and Home of Your Own Program(s) Contract Contingencies & Home Inspection o How to Handle Deficiencies in the Home Inspection Understanding Mortgage Terms o Rate Lock, APR, Good Faith Estimate, Truth in Lending, Points, MIP Loan Processing Application to Commitment o Appraisal, Credit Report, Verifications o What to do if Your Loan is rejected Commitment Letter and Approval Conditions o Approval Conditions o Title Search and Insurance o Homeowner s Insurance o Final Inspection Closing o HUD-1 Settlement Statement o Note and Mortgage Deed for First Mortgage and DAP Mortgage o Closing Costs o Prepaids Escrow Accounts Responsibilities of Homeownership Financial Planning o Loan Repayment Terms o Recapture Tax o Avoiding Foreclosure Handling Financial Difficulties o Budgeting o Other Housing Costs Emergency Fund o Tax Planning o Refinancing Equity Loans Predatory Lending o Advantages of Principal Prepayment o Protecting Your Investment - Home Maintenance and Safety o Fire Safety o Theft Prevention o Meet the Neighbors o Seasonal Maintenance Checklist o Repairs and Improvements, including green technology o Foreclosure Prevention and Loss Mitigation o Refinancing & Avoiding Mortgage Scams Other objectives you feel are appropriate 5

6 SCOPE OF SERVICES - Foreclosure Prevention Counseling for CHFA s 60-Day Delinquent Accounts: CHFA will select qualified agencies to conduct individual and group foreclosure prevention counseling sessions statewide. Counseling agencies should have knowledge of loss mitigation procedures and timelines for CHFA, the Department of Housing and Urban Development (HUD), the Veteran s Administration (VA), Rural Development (USDA) and Private Mortgage Insurance (MI). Each selected agency will be responsible for: 1. Contacting CHFA s 60-day delinquent borrowers to establish foreclosure prevention counseling appointments. 2. Providing foreclosure prevention counseling sessions, on an individual basis, for existing CHFA mortgages that become delinquent on their mortgage accounts. Face-to-face or telephone counseling are acceptable. 3. Providing services that include a review of the clients budget and basic financial management, formulation of an action plan and loss mitigation option that will be submitted to CHFA s loan servicer for review and resolution. 4. Maintaining appropriate documentation, files, and reporting requirements outlined by CHFA and HUD. 5. Using Home Counselor On-Line, or other system designated by CHFA, as a means to track the clients who attend session(s) and receive counseling. Report to CHFA, either electronically or manually, as required. 6. Participating in quarterly meetings at CHFA to discuss the program, and other meetings as required. 6

7 SCOPE OF SERVICES - Foreclosure Prevention Counseling: CHFA will select qualified agencies to conduct individual and group foreclosure prevention counseling workshops statewide. Counseling agencies should have knowledge of loss mitigation and foreclosure prevention programs and foreclosure and bankruptcies procedures and timelines. Each selected agency will be responsible for: 1. Working with Judicial Department mediators, Lenders, Servicers and others to formulate a loss mitigation action plan and proposal to resolve the delinquency or foreclosure, as appropriate. 2. Conducting workshops at a conveniently located, handicapped-accessible facility, which can accommodate a maximum of 25 people at tables or desks. If possible, the site should be accessible by mass transportation. Curriculum to include: a. Requirements of individual counseling b. Foreclosure process and what to expect next c. Judicial Mediation Program d. Workout options, including CHFA s Special Programs - Emergency Mortgage Assistance Program (EMAP) and CT FAMLIES. e. Define timeline for resolution to establish client expectations. 3. Providing course materials to all attendees at no cost. Materials must be easily understood and available in different languages and sensitive to cultural diversity. 4. Providing notice to CHFA, within the required guidelines, of date, time, contact person, location, including directions of workshops. 5. Assisting in the advertising and recruitment of workshop participants in your geographic area. 6. Providing certificates of course completion or other evidence of counseling through paperless tracking system for all clients who have successfully completed the training. 7. Providing foreclosure prevention counseling sessions, on an individual basis, for referrals from CHFA s Call Center, the Foreclosure Mediation Program and the Mortgage Crisis Job Training Program (MCJTP). Individual face-to-face and telephone counseling will be acceptable. 8. Individual foreclosure prevention counseling services to include, but are not limited to the following: a. Client intake, authorization form(s), budget, action plan b. Budget verification and review of documentation, and written action plan including hardship letter and documentation of attempts to contact the Servicer or Lender. 9. Maintaining appropriate documentation, files, and reporting requirements outlined by CHFA and HUD. 10. Using Home Counselor On-Line, or other system designated by CHFA, as a means to track the clients who attend session(s) and receive counseling. Report to CHFA, either electronically or manually, as required. 11. Participating in quarterly meetings at CHFA to discuss the program, and other meetings as required. 7

8 SCOPE OF SERVICES - Financial Fitness Counseling: CHFA will select qualified agencies to conduct financial fitness and credit counseling for CT FAMLIES borrowers and clients referred from Work Place, Inc. from the Mortgage Crisis Job Training Program (MCJTP). Each agency will be responsible for: 1. Providing three-hour financial fitness and credit counseling classes and individual financial fitness and credit counseling sessions, in either in a face-to-face or telephone setting, as necessary. 2. Delivery curriculum that covers many areas of financial fitness; ensuring that the objectives on page 9 are met. 3. Scheduling classes in advance and providing notice to CHFA, within the required guidelines, of date, time, contact person, location, including directions to classes. 4. Conducting classes at a conveniently located, handicapped-accessible facility, which can accommodate a maximum of 25 people at tables or desks. If possible, the site should be accessible by mass transportation. 5. Providing course materials to all attendees at no cost. Materials must be easily understood and available in different languages and sensitive to cultural diversity. Classroom presentation should incorporate visual materials, including a PowerPoint presentation. 6. Providing certificates of course completion or other evidence of counseling through paperless tracking system for all clients who have successfully completed the training. 7. Maintaining appropriate documentation, files, and reporting requirements outlined by CHFA and HUD. 8. Using Home Counselor On-Line, or other system designated by CHFA, as a means to track the clients who attend session(s) and receive counseling. Report to CHFA, either electronically or manually, as required. 9. Participating in quarterly meetings at CHFA to discuss the program, and other meetings as required. 8

9 OBJECTIVES FOR FINANCIAL FITNESS COUNSELING: Counseling purpose is to manage your money & use credit wisely. Access your financial situation Set short-term and long-term financial goals Create and follow your budget Have a savings/checking plan Bank vs. Check Cashing Overview of credit o Types & costs: secured & unsecured loans Interest rates Terms Charges Minimum payments o Credit report & scoring Reporting Bureaus Items included Correcting errors Including omissions o Cost of credit Protect your assets Insurance o Types o Coverage o Strategies Evaluate your progress Other objectives you feel are appropriate 9

10 SCOPE OF SERVICES -UR Home, 203(k) and 203(k) Streamline Programs Counseling: CHFA will select qualified agencies to conduct education and counseling for CHFA s Urban Rehabilitation Homeownership (UR Home), 203K and 203K Streamline Programs. Program specifics are available at RehabilitationHomeownershipProgram.aspx and ehabilitationmortgageloanprograms.aspx. Qualifications are sought for a statewide basis. Each selected agency will be responsible for: 1. Performing an Initial Counseling Assessment on an individual basis with the potential homebuyer. The Assessment will occur prior to the homebuyer(s) retaining a licensed home inspector and is to include, but is not limited to: evaluating the potential homebuyer(s) counseling requirements, including their knowledge, ability or financial capability to qualify successfully for a UR Home loan. explaining the home inspection process. 2. Conducting Individual Counseling Session(s) to include, but are not limited to, the following information: 1. Receive guidance on how to find a contractor and licensed home inspector. 2. Learn how to understand your home inspection report. 3. Understand how to review the insurance requirements of contractors and check if insurance is valid. 4. Develop a timetable for work with contractor and UR Home Lender. 5. Learn how to enter into a contract or agreement. 6. Learn why title and visual inspections by the Lender are required prior to funding. 7. Learn how progress payments are made. 8. Understand dual payee checks and the timeline for payments. 9. Understand holdbacks/retainage. 10. Learn what happens and what recourse homebuyers have if the contractor doesn t finish the work while under contract. 11. Homebuyers will be provided with suggested samples of a Contractor s Agreement, a draw request and cost over-run forms, if necessary. 3. Reviewing and determination of eligible UR Home rehabilitation work to be completed, including costs. Assist the homebuyer(s) in the completion of the Contractor s Agreement, Draw Request forms, and Cost Over-Run Submittal requests. The amount of time required will be dependant upon the potential homebuyer s knowledge of the Real estate market Mortgage lending process Rehabilitation process. 10

11 EVALUATION CRITERIA Agencies will be evaluated on the basis of the written responses to this RFQ, additional written information as requested by CHFA and oral interviews, if any, including, but not limited to the following criteria: Experience of the housing counseling agency Qualifications of personnel Equal employment opportunity and affirmative action Connecticut presence Conflict or potential conflicts Location/geographic area REQUESTED INFORMATION Please indicate for which types of housing counseling you are submitting your qualifications for or if you are responding to all of the types of counseling. All agencies must address the following issues and questions: 1. Provide a brief description of your housing counseling agency, its history and main areas of business. Indicate the total number of staff and the team available to CHFA. 2. Provide a summary of the key strengths and qualifications of your housing counseling agency to serve as a CHFA-approved housing counseling agency. Include information about your organizations past and current experiences in homebuyer counseling and education, individual credit and financial counseling, financial fitness counseling and foreclosure prevention counseling, as well as Urban Rehabilitation counseling. 3. Describe your presence in Connecticut. This may include information the number of offices your firm maintains in Connecticut, the location of such offices and the number of Connecticut residents employed in those offices. 4. Provide evidence of your agency s HUD approval as a housing counseling agency. 5. Provide evidence that your agency has adopted the National Industry Standards for Homeownership Education and Counseling. The website is 6. An outline of your agency s current involvement in municipal or other homeownership initiatives which contain a counseling or education component. 7. Provide a brief summary of the professional background of any individuals who would be assigned to work with CHFA. Please indicate their probable areas of responsibility and the percentage of their time which would be available to service CHFA s contract(s). A current resume and any other relevant information about the educational and professional qualifications of the staff members who would conduct housing counseling. Include copies of all staff or agency training certifications. 8. Indicate whether any staff members are able to conduct classes or provide counseling in Spanish or other foreign language(s). 9. Provide, in tabular form, information on the employee composition of your housing counseling agency, indicating the total number of employees and the total number and percentage of minorities and women employed and their titles. 10. Please describe your housing counseling agency s equal employment opportunity, and affirmative action policy. 11

12 11. Discuss any pending investigations by HUD, the State of Connecticut or Attorney General, the Internal Revenue Service or any other regulatory body or court (local, state or federal) regarding the conduct of your housing counseling agency, the housing counseling agency s management or any individual assigned to work with CHFA which might affect your ability to deliver services described in this RFQ. Discuss any such investigation that has occurred in the past two years. 12. Describe your housing counseling agency s knowledge of and past experience with CHFA. 13. Selected agencies must comply with CHFA and State Ethics requirements, laws and regulations. Persons seeking to do business with CHFA are required to comply with the attached Ethics statement and the applicable provisions of the Code of Ethics and Code of Ethics for Lobbyists incorporated therein by reference. The chief official of the bidder or vendor awarded this contract shall execute the attached CHFA statutory provisions, affidavits and certifications. 14. Information about how you measure your performance in homebuyer, financial and credit counseling and delinquency counseling, including the number of clients who purchased housing after completing your agency s homebuyer counseling program and the number of clients who avoided foreclosure, as a result of your foreclosure prevention counseling program. 15. Your agency s geographic capacity to provide classes and counseling, the number of classes you could deliver on a monthly basis and general geographic distribution of classes (i.e. statewide, regional, etc.) 12

13 SUBMISSION OF RESPONSES The following requirements must be observed in the preparation and submission of your agency s qualifications: 1. All inquiries should be directed to Mary Jane Kononchik, Home Mortgage Borrower and Counseling Services Coordinator at counseling@chfa.org. Agencies submitting Qualifications should not contact members of the Board of Directors or other staff of CHFA. All potential respondents are invited to participate in a conference call on Wednesday, July 13, 2011 at 10:00 to ask questions regarding the RFQ. The call in number is (877) , access code is Three copies of your Qualifications (including all required attachments) must be delivered to CHFA, Attention: Mary Jane Kononchik at 999 West Street, Rocky Hill, CT no later than 4:00 PM on July 29, Faxed or ed responses will not be considered. 3. Responses must include a cover letter signed by an individual authorized to enter into a contract with CHFA on behalf of the agency, and must identify the individual (along with his/her phone number and ) who is available to answer questions about the Qualifications and who will be responsible for the work involved. 4. Selected agencies must comply with all state and federal law applicable to CHFA including, but not limited to, ethics requirements, laws, procedures and regulations, and must execute CHFA statutory provisions, certifications and affidavits attached hereto. CHFA reserves the right to: Reject any and all Qualifications received in response to this request; Waive or modify any irregularities in Qualifications received; Award contracts in any manner it deems necessary to serve the best interest of CHFA and the State of Connecticut; Request additional information as determined necessary or request that some or all responding agencies make oral presentations; and Discontinue or not go forward with the proposed assignment. Each approved agency will execute an engagement letter satisfactory to CHFA and will agree that it will comply with the provisions of Connecticut General Statutes applicable to contracts with CHFA including, but not limited to, nondiscrimination and affirmative action provisions. Failure to perform to the satisfaction of CHFA will result in revocation of CHFA s approval. Thank you for your interest in the Connecticut Housing Finance Authority. The Connecticut Housing Finance Authority is an Affirmative Action/Equal Opportunity Employer. 13