title
Authorization to enter into an Agreement for Professional Property Management Services.
presenter
Presenter: Leonard Langston, Interim Chief Property Officer
Recommendation
The Interim Chief Executive Officer (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that the CHA Board of Commissioners (“Board”) approve the award of contract(s) to the below listed contractor(s) in the approximate aggregate value of $2,646,000 consisting of an aggregate original contract value of $1,293,600 for a two year base term from July 1, 2025 through June 30, 2027; and two option years in the combined amount of $1,352,400 to provide professional property management services at various properties.
The Board further authorizes the Interim CEO to approve each request to exercise the options awarded under the contract.
|
Recommended Awardee |
Base Contract Value |
Base Term |
Option Terms |
Total Contract Value |
|
Manage Chicago, Inc. |
$1,293,600 |
2 Years |
1st Option: $666,204 2nd Option: $686,196 |
$2,646,000 |
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|
$ |
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$ |
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|
$ |
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$ |
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|
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|
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Total: |
$1,293,600 |
|
Aggregate Total: |
$2,646,000 |
The requested action complies in all material respects with all applicable federal, state, and local laws, and CHA policies. CHA staff has completed all necessary due diligence to support the submission of this initiative.
Funding
MTW Funds
Background
On May 2, 2025, CHA issued a partial termination notice for property management services at Horner Westhaven and Region 2 scattered sites, totaling 980 units in the public housing program, due to Contractor's continued failure to perform the contracted services with sufficient personnel or with sufficient resources and to promptly cure or re-perform unsatisfactory services within a reasonable time. The partial termination of property management services, along with the need for an accelerated transition, created an emergency need for CHA to secure replacement property management services.
Procurement Activities
In order to quickly find a replacement property management firm for Horner Westhaven and Region 2 scattered sites, so day-to-day management services would be uninterrupted, CHA used the emergency procurement approach to directly engage potential replacement firms in compliance with HUD rule CFR 200.320(c)(3), as any delay resulting from providing public notice of a competitive solicitation would deprive residents, in whole or in part, of the use and enjoyment of their homes Ultimately, one property management firm was able to meet the scope and timeline for services and submitted a letter of intent, property management approach, and proposed management fee.
After reviewing the proposal, Manage Chicago was selected and is recommended for award to provide the property management services at the two impacted properties.
|
Responsive Proposal(s) |
|
Manage Chicago, Inc. |
Diversity Contracting Requirements
The CHA has reviewed the proposed vendors and has determined the vendors utilization plans meets with the CHA’s stated goals.
Manage Chicago, Inc. will satisfy the CHA 20% M/W/DBE compliance goal through a combination of indirect and direct participation utilizing Rojas Landscaping, Inc. (MBE) at 10% for indirect participation and MDC Economic Developer Corp (MBE) at 10% for direct participation. They will satisfy their 3% Section 3 requirement through subcontracting to MDC Economic Developer Corp a 51% Resident Owned Business.
Vendor Background Information
Manage Chicago, Inc. is owned by Chris Amatore. They offer a full range of services, including property management, project management, leasing and maintenance services for apartments, condominiums, and commercial properties. Manage Chicago entered into their initial contract with CHA in 2020 and was awarded additional units in 2021. They currently manage approximately 3,400 units for CHA across Altgeld and two scattered sites properties.
Based on the foregoing, it is in the best interest of the CHA for the Board to authorize the Interim CEO or her designee, to enter into a contract for professional property management services with Manage Chicago, Inc. in the amount of $2,646,000.
Respectfully Submitted:
______________________
Angela Hurlock
Interim Chief Executive Officer