title
Authorization to enter into bridge agreements for Professional Property Management Services.
presenter
Presenter: Leonard Langston, Jr., Interim Chief Property Officer
Recommendation
The Chief Executive Officer (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that the CHA Board of Commissioners (“Board”) approve the award of short-term contracts to the below listed contractors in the approximate aggregate value of $1,982,120.00 for a 4-month term to provide professional property management services to various CHA properties. The Board further authorizes the CEO to use his discretion to reallocate contract values among awardees, as necessary.
|
Recommended Vendors |
Contract Value |
|
East Lake Management Group, Inc. Package 2 Public Housing |
$284,604 |
|
East Lake Management Group, Inc. Package 2 RAD |
$217,224 |
|
East Lake Management Group, Inc. Package 3 Public Housing |
$313,180 |
|
East Lake Management Group, Inc. Package 6 Public Housing |
$155,660 |
|
East Lake Management Group, Inc. Package 6 RAD |
$46,368 |
|
Hispanic Housing Development Corporation Package 4 Public Housing |
$265,104 |
|
Hispanic Housing Development Corporation Package 4 RAD |
$116,760 |
|
Hispanic Housing Development Corporation Package 5 Public Housing |
$62,304 |
|
Hispanic Housing Development Corporation Package 5 RAD |
$112,464 |
|
Manage Chicago, Inc. Package 8 Public Housing |
$408,452 |
|
Aggregate Total |
$1,982,120 |
Funding
MTW Funds
Background
On December 21, 2020, the CHA released Request for Proposals Event No. 2831 (the “RFP”) to solicit proposals from qualified professional property management firms, experienced in the management and operation of residential properties, to provide property management services to CHA's residents. Respondents could apply for any one or more of the eight (8) packages contained within the RFP. The scope of work expected of the selected respondents included those services customarily associated with third-party multifamily housing management including, but not limited to, overseeing occupancy/leasing, marketing, resident selection, resident relations, regularly scheduled resident re-examinations, lease enforcement, rent collection, evictions, routine and emergency maintenance and repairs, management of the grounds and public spaces, budgeting, accounting, and following CHA guidelines regarding procurement, MBE/WBE/DBE, Section 3 and Davis Bacon requirements.
Ultimately, seven (7) respondents submitted proposals which were reviewed by an evaluation committee comprised of two (2), five-member teams. Proposals were scored on a 100-point scale in the following areas: qualifications and experience, past performance, approach/work plan, organization structure/key personnel, MBE/WBE/DBE and Section 3 hiring, and the proposed management fee. After the evaluation committee completed its evaluation of the proposals, the contracting officer approved the competitive range for each package. Oral presentations were held for five (5) firms that were in the competitive range for Packages 1-8. Following oral presentations, Best and Final Offers were requested and received.
Based upon the evaluations of the written proposals, oral presentations, and best and final offers, it was determined that: The Habitat Company LLC (Habitat), East Lake Management Group, Inc. (ELM), Hispanic Housing Development Corporation (HHDC), and Manage Chicago, Inc. (MC), would collectively provide the best service and value to the CHA for the properties within the respective packages each was awarded. Contracts for each package were awarded for property management services and included management fee compensation. Firms were compensated based on the dollar amount generated by their percentage input on the fee form.
Since the execution of the agreements in 2021, North Scattered Sites was removed from HHDC’s agreement for the convenience of CHA and reassigned to MC in 2022; CHA and Habitat ended their property management partnership in 2024; and West Scattered Sites, Horner-Westhaven, and Devon Place were removed from HHDC’s agreement due to poor performance and reassigned MC in 2025.
Procurement Activities
Due to exigent circumstances, CHA utilized the noncompetitive exigency procurement method under 2 CFR 200.320(c)(3) to extend short-term contracts with Manage Chicago, East Lake Management Group, Inc. (ELM), Hispanic Housing Development Corporation (HHDC), to continue to provide property management services to CHA. The services provided under these agreements are essential to residents' health, safety, and habitability. Delaying the procurement to conduct a full competitive solicitation would have resulted in service interruptions, thereby depriving residents-either fully or partially-of the use and enjoyment of their homes.
Contracting Requirements
The recommended firms have agreed to continue to comply with CHA’s stated Compliance goals.
Vendor Background Information
East Lake Management Group, Inc.
Elzie Higginbottom, Chairman and CEO and Eileen Rhodes, President; 2850 S. Michigan Avenue, Chicago, IL 60616. East Lake Management Group, Inc. (“East Lake”) is a certified MBE and has been providing professional residential property management for over 35 years. East Lake currently manages over 17,000 units and is committed to providing high quality, professional, compassionate property management services to residents across Chicago - regardless of zip code or income. East Lake has been a partner of the Chicago Housing Authority for over 25 years, providing professional property management services to CHA families and seniors. They currently manage approximately 5,500 units within CHA’s.
Hispanic Housing Development Corporation
Paul Slade, Chairman/Director and Hank Mendoza, Vice Chairman/Director; 325 N. Wells Street, 8th Floor, Chicago, IL. 60654. Hispanic Housing Development Corporation (“HHDC”) was founded in 1976. HHDC has been an affordable real estate housing developer, builder, and property manager for 45 years. Its Property Management Division was created in 1983 to improve the quality and sensitivity of residential services and to ensure the physical and financial well-being of properties. Its in-house construction company, Tropic Construction Corporation, was founded in 1993 to provide facility management services, from preventive maintenance to rehabilitation and additions, and new construction. HHDC’s experience with the CHA dates to 1989, when it became one of CHA’s first third-party management companies due to the strength of its property management services. It managed several CHA buildings from 1989 through 2015. They currently manage 3,266 CHA units.
Manage Chicago, Inc.
Chris Amatore, President and Founder, 433 W 119th St, Chicago IL 60628. Manage Chicago was incorporated in 2008 and has been a property management provider with CHA since 2020. They have over a decade of experience in the real estate business, over 700 properties currently managed, and over 500 properties rehabilitated. Manage Chicago has two open contracts on which they subcontract directly and indirectly to multiple firms to meet M/W/DBE requirements. Manage Chicago subcontracts directly to multiple Section 3 certified vendors to meet the Section 3 requirement. Manage Chicago currently manages nearly 6,900 CHA units
Based on the foregoing, it is in the best interest of the CHA for the Board to authorize the CEO or their designee to enter into contracts for Professional Property Management Services with East Lake Management, Hispanic Housing, and Manage Chicago Inc. in the aggregate amount of $1,982,120.00.
Respectfully Submitted:
______________________
Keith Pettigrew
Chief Executive Officer