title
Authorization to enter into a professional services contract for tenant files audit, curing, and standardization.
presenter
Presenter: Kemena Brooks, Chief of Staff
Recommendation
The Chief Executive (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that the CHA Board of Commissioners (“Board”) authorize the CEO or his designee to: 1) enter into a contract with Nan McKay and Associates, Inc. to provide tenant file audit and management services, for a two-year base term not to exceed $4,079,420, with one additional one-year option term not to exceed $812,820; and, 2) approve a single request to exercise the options awarded under the contract, if required.
Table 1: Recommended Vendors and Contract Amounts by Service Category
|
Recommended Awardee |
Base Contract Value |
Base Term |
Option Year 1 |
Total Contract Value |
|
Nan McKay and Associates, Inc. |
$4,079,520 |
2 years |
$812,720 |
$4,892,240 |
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
The Chicago Housing Authority (CHA) is proposing to retain professional services to conduct a full audit of all CHA tenant files, cure any identified deficiencies, and ensure all tenant files are stored and retained in a standardized format. This work is necessary to support CHA with remaining compliant with the tenant eligibility and reporting requirements for the various housing programs that fund the housing that serves CHA residents.
In July 2026, CHA issued RFP Event No. 3347 - Tenant File Audit to solicit qualified firms with the experience, staffing, systems, and organizational capacity necessary to conduct a large-scale review and management services for all tenant files across CHA’s portfolio.
The compliance review will be under the following three main programs funding CHA’s portfolio:
• Public Housing (Section 9)
• Rental Assistance Demonstration Project-Based Voucher (RAD PBV, Section 8)
• Low-Income Housing Tax Credit (LIHTC)
The audit, cure and standardization process will involve 100% of CHA tenant files or approximately 20,000 total files. This work will involve three core steps:
1. Evaluating all current tenant files against an established baseline, by program type, in accordance with HUD regulations, and identifying any findings, errors, or missing information.
2. Coordinating with property management firms and residents to cure any findings from the evaluation.
3. Ensuring all files are saved and stored in a standardized format per CHA’s electronic file storage requirements.
RFP respondents were required to demonstrate experience conducting tenant file reviews involving multiple affordable housing programs and funding/subsidy types, including Public Housing, RAD, and LIHTC, as well as knowledge of applicable HUD, LIHTC, and CHA compliance requirements.
Under the proposed contract, the proposed firm will review applicable tenant files; identify, categorize, track, and document deficiencies; coordinate with CHA, property management staff, and residents, as appropriate, to address missing or deficient documentation; assemble complete tenant files; upload finalized files to CHA’s i-FILE system; and provide program, property, management firm, and portfolio-level reporting and recommendations.
The proposed full file audit and management support services will be completed in the two-year base term for the proposed contract. In addition, the proposed contract base term includes budget for property management firm training related to ongoing regulatory changes for the various housing programs applicable to CHA. The one option year is for services for CHA’s annual 12% file audit which is to be completed per CHA’s audit policy.
Procurement Activities
Specifications prepared by the CHA staff were publicly advertised as Event #3347 RFP for Tenant File Audit on July 29, 2026. A Pre-Proposal Conference was held on August 6, 2026 and four (4) firms attended. Four (4) proposals were received on August 21, 2026. The responses to the RFP are depicted in the table below:
|
Responsive Proposal(s) |
|
BRC Consulting, LLC |
|
Ringold Financial Management Services, Inc. |
|
Nan McKay and Associates, Inc. |
|
EMA Management Services Group, Inc. |
The recommended vendor(s) were selected through a competitive procurement process in accordance with HUD regulation CFR 200.318 that evaluated responses in the following areas (list criterion and points):
1. Functional and technical requirements -- 35 points
2. Experience and Past Performance -- 25 points
3. Approach and Work plan -- 20 points
4. Price -- 10 points
5. MBE/WBE compliance -- 10 points
Final scores received from the Evaluation Committee were used to determine the competitive range. Oral presentations were waived and best and final offers were received. Based on the overall scoring, CHA staff recommends Nan McKay and Associates, Inc. for award to provide Tenant File Audit services as needed by CHA.
Contracting Requirements
The CHA Staff has reviewed the proposed vendors and has determined the vendors' utilization plans meet with the CHA's stated goals.
Nan McKay and Associates, Inc. will satisfy the CHA 20% compliance goal through direct subcontracting 20% to JRA Management, LLC (DBE) certified through the Illinois Unified Certification Program. They will satisfy their Section 3 subcontracting goal through self-performing as a certified 75% tier Section 3 vendor. Nan McKay has served as a prime on eight (8) contracts and as a sub on one (1). They have worked with CHA since 2006 to current.
Vendor Background Information
John McKay, President & Chief Administrative Officer; 1810 Gillespie Way #202, El Cajon, CA 92020. Nan McKay and Associates, Inc. was established in 1980 and has been the leader in providing innovative solutions for neighborhoods across the country. Mr. McKay provides executive oversight for approximately 100,000 housing vouchers and more than $4B of housing program subsidy annually. With offices in California, Connecticut, Florida, Illinois, Kentucky, and New Jersey, is recognized as one of the most effective, strategic, and compliance-focused organizations serving communities nationwide.
Based on the foregoing, it is in the best interest of the CHA for the Board to authorize the Chief Executive Officer or his designee, to enter into a contract for Tenant File Audit Services with Nan McKay and Associates, Inc. with an aggregate not to exceed amount of $4,892,240.00.
Respectfully Submitted:
______________________
Keith Pettigrew
Chief Executive Officer