Legislative Matter

Miami-Dade Legislative Item
File Number: 250621

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Clerk's Official Copy

File Number: 250621

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-576-25

Control: Pending BCC Assignment

File Name: SECTION 8 HOUSING

Introduced: 3/17/2025

Requester: Strategic Procurement

Cost:

Final Action: 6/26/2025

Agenda Date: 6/26/2025

Agenda Item Number: 8P3

Notes:

2/3 VOTE

Title:

RESOLUTION AUTHORIZING A NON-COMPETITIVE DESIGNATED PURCHASE PURSUANT TO SECTION 2-8.1(B)(3) OF THE COUNTY CODE BY A TWO-THIRDS VOTE OF THE BOARD MEMBERS PRESENT; AUTHORIZING ADDITIONAL TIME OF ONE YEAR AND EXPENDITURE AUTHORITY IN AN AMOUNT UP TO $37,650,877.00 FOR A MODIFIED CONTRACT AMOUNT OF $135,181,867.00 FOR CONTRACT NO. RFP-01132 FOR SECTION 8 HOUSING VOUCHER SERVICES FOR THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, OR SUCCESSOR DEPARTMENT; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE SUPPLEMENTAL AGREEMENT NO. 10 AND EXERCISE ALL PROVISIONS OF THE CONTRACT, PURSUANT TO SECTION 2-8.1 OF THE COUNTY CODE AND IMPLEMENTING ORDER 3-38

Indexes:

NONE

Sponsors:

Marleine Bastien, Prime Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	6/26/2025	8P3	Adopted				P
REPORT:	Commissioner Gonzalez stated that he had pulled the item because of a news report published that morning indicating that the County had frozen the issuance of Section 8 housing vouchers due to a $77 million funding shortfall. He expressed concern that the Board was being asked to approve a $37 million contract with the company responsible for administering those vouchers, whose existing contract was set to expire in four days, and he asked the department to explain the situation. Mr. Nathan Kogan explained that a shortfall referred to the gap between the funding the U.S. Department of Housing and Urban Development (HUD) provided to a housing agency and the amount needed to subsidize its issued vouchers. He noted that HUD allocated funding each year based on an estimate derived from the prior year, so shortfalls were not uncommon, and that HUD maintained a dedicated shortfall team that worked with affected jurisdictions and provided additional funding. He stated that HUD was experiencing a significant national shortfall this year affecting approximately 800 public housing agencies. He advised that in February the department had been notified, along with all other housing agencies, of a potential shortfall then estimated at $77 million, and that after working with HUD's shortfall team and the County's contractor, Nan McKay, to identify operational savings, the estimated shortfall had been reduced to approximately $45 million. Commissioner Gonzalez asked whether the County was still issuing housing vouchers. Mr. Kogan explained that, as a shortfall prevention measure, the department was not reissuing tenant-based vouchers as participants left the program through attrition. He clarified that this did not affect project-based vouchers, which were tied to specific housing units and had recently been opened. He noted that the department retained the unissued vouchers but could not fund them, and that their availability would depend on the funding received in the next fiscal year. Commissioner Gonzalez asked for clarification regarding the status of the unfunded vouchers. Mr. Kogan stated that the process remained fluid and that the department expected to receive additional funding and to have more clarity in the coming months. He acknowledged, however, that the combination of the shortfall and the department's cost-saving measures could result in a reduction in the total number of vouchers in the next fiscal year. Commissioner Gonzalez expressed dissatisfaction with learning of the shortfall through the Miami Herald rather than directly from the department. With the concurrence of the Chair of the Housing Committee, he requested that the department provide regular updates to the committee on the status of the shortfall and the department's plan to address it. Mr. Kogan confirmed that the department would provide those updates and noted that it was working with the Mayor's Office to outline the current status and the measures being taken. Commissioner Bermudez noted that the original contract had been structured as a two-year term with three one-year options and that the item before the Board added a sixth year beyond that term. He asked whether the contract would be competitively bid. Mr. Kogan stated that the contract was already out for bid, that the solicitation would close that month, and that the new contract would be performance-based with incentives tied to specified metrics. Commissioner Bermudez concurred with Commissioner Gonzalez regarding communication, noting that he had similarly learned of a matter involving an airport in his district through media coverage. He stated that Commissioners should be informed of such matters in advance by the Administration, the departments, and the County Attorney's Office. Hearing no questions or comments, the Board proceeded to vote on the foregoing resolution, as presented.

Appropriations Committee	5/14/2025	3I	Forwarded to BCC with a favorable recommendation
REPORT:	Chairwoman Regalado noted issues with the Section 8 housing voucher program. Mr. Nathan Kogon explained that the program served approximately 19,000 households with full HUD funding, but faced an unprecedented national shortfall of $3.7 billion in FY 2025, with potential additional cuts of $26 billion under proposed federal budget changes. Chairwoman Regalado asked Mr. Kogon to prepare and provide the Board a comprehensive list of all housing locations participating in the housing choice (Section 8) program, organized by commission district and zip code. Hearing no other questions or comments, the Committee proceeded to vote on the foregoing proposed resolution, as presented.

County Attorney	3/18/2025		Assigned	Terrence A. Smith		3/19/2025

Carladenise Edwards	3/17/2025		Assigned	Office of Agenda Coordination	3/17/2025	3/17/2025

Office of Agenda Coordination	3/17/2025		Assigned	County Attorney	5/6/2025
REPORT:	SPD - No sponsor - pending April cmte - County attorney Terrence Smith - attachments: Supplemental agreement - pgs 9

Legislative Text

TITLE
RESOLUTION AUTHORIZING A NON-COMPETITIVE DESIGNATED PURCHASE PURSUANT TO SECTION 2-8.1(B)(3) OF THE COUNTY CODE BY A TWO-THIRDS VOTE OF THE BOARD MEMBERS PRESENT; AUTHORIZING ADDITIONAL TIME OF ONE YEAR AND EXPENDITURE AUTHORITY IN AN AMOUNT UP TO $37,650,877.00 FOR A MODIFIED CONTRACT AMOUNT OF $135,181,867.00 FOR CONTRACT NO. RFP-01132 FOR SECTION 8 HOUSING VOUCHER SERVICES FOR THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, OR SUCCESSOR DEPARTMENT; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE SUPPLEMENTAL AGREEMENT NO. 10 AND EXERCISE ALL PROVISIONS OF THE CONTRACT, PURSUANT TO SECTION 2-8.1 OF THE COUNTY CODE AND IMPLEMENTING ORDER 3-38

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:

Section 1. This Board approves a non-competitive designated purchase pursuant to section 2-8.1(b)(3) of the County code by a two-thirds vote of the Board members present; authorizing additional time of one year and expenditure authority in an amount up to $37,650,877.00 for a modified contract amount of $135,181,867.00 for Contract No. RFP-01132 for Section 8 Housing Voucher Services for the Department of Housing and Community Development, or successor department.

Section 2. This Board authorizes the County Mayor or County Mayor�s designee to execute Supplemental Agreement No. 10, in substantially the form attached and made a part hereof, and exercise all provisions of the contract, pursuant to section 2-8.1 of the County Code and Implementing Order 3-38. A copy of the complete contract is on file with and available upon request from the Strategic Procurement Department.

HEADER
Date:
To: Honorable Chairman Anthony Rodriguez
and Members, Board of County Commissioners

From: Daniella Levine Cava
Mayor

Subject: Request for Approval of a Non-competitive Designated Purchase for Additional Time and Expenditure Authority for Section 8 Housing Voucher Services

Summary
This item requests approval for an extension of time and additional expenditure authority for the purchase of Section 8 Housing Voucher Services for the Housing and Community Development (HCD), or successor department. The extension of one year and the additional expenditure authority will enable the department to continue administering and managing the Section 8 Housing Voucher Program. This vital federal program provides subsidies to families, veterans, the elderly, and disabled individuals, helping them secure affordable, safe, and sanitary housing in the private market.

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (Board) approve this request for a non-competitive designated purchase and Supplemental Agreement No. 10 under Contract No. RFP-01132, Section 8 Housing Voucher Services, by a two-thirds vote of the Board members present, pursuant to Section 2-8.1(b)(3) of the Miami-Dade County Code to extend the contract term by one year and authorize an increase in expenditure authority in the amount of $37,650,877.00 This extension will provide sufficient time for HCD to finalize the replacement contract and present it to the Board.

Background
This competitively established contract was awarded to Nan McKay & Associates, Inc. (NMA) on November 19, 2019, by the Board via Resolution No. R-1221-19 in the amount of $45,764,410.00 for an initial two-year term, with three one-year options to renew. The Board authorized the options to renew via Resolution No. R-1157-21, bringing the cumulative allocation to $51,614,410.00. The contract was also modified under Resolution No. R-104-21 to accommodate the COVID-19 Emergency Rental Assistance Program (ERAP). The contract is currently in its final term.

HCD utilizes this contract to purchase services that are essential for administering and managing the Section 8 Housing Choice Voucher Program. Additional time and expenditure authority are needed to support the department�s ongoing responsibilities.

The services provided under this contract include intake, case management, family self-sufficiency services, and inspections. NMA manages and operates the voucher program�s waiting list, provides intake and new admissions services, and conducts ongoing tenant services, such as annual and interim re-examinations to maintain tenant participation in the program.

The United States Department of Housing and Urban Development (HUD) grants funding to Miami-Dade County through HCD for housing assistance under various programs. These include the Housing Choice Voucher, Mainstream, and Emergency Housing Voucher programs. The County offers income-based subsidies for affordable, safe, and sanitary housing to eligible families, veterans, the elderly, and disabled individuals. Funding amounts and adjustments are determined annually by HUD based on appropriations and the number of units leased by the County. NMA receives 72.34 percent of the administrative fee allocation PHCD receives from HUD for these program services.
HCD worked closely with the Strategic Procurement Department (SPD) to prepare and issue a replacement solicitation in March 2025. However, additional time was necessary to prepare this solicitation due to the significant resources involved in managing and administering the ERAP, as well as the decision to transition to a more complex, performance-based contract. This new contract structure will enhance performance outcomes and improve monitoring and compliance across the program. The transition is critical for the long-term success of the program, ensuring better service delivery to vulnerable populations while maintaining transparency and accountability. Accordingly, it is in the County�s best interest to approve this designated purchase pursuant to Section 2-8.1(b)(3) of the Code to allow for advertisement of the solicitation and award of a replacement contract.

Scope
The impact of this item is countywide in nature.

Delegated Authority
The County Mayor or the County Mayor�s designee will have the authority to execute Supplemental Agreement No. 10 and exercise all provisions of the contract, pursuant to Section 2-8.1 of the County Code and Implementing Order 3-38.

Fiscal Impact/Funding Source
The contract expires on June 30, 2025 and has a current cumulative allocation of $97,530,990.00. If this request is approved, the contract will have a modified cumulative allocation of $135,181,867.00 and will expire on June 30, 2026. The requested amount is based on an analysis of the anticipated number of units to be leased during the extension period and the projected funding to be received by HUD, which is adjusted annually.

Department Existing Cumulative Allocation Additional Allocation Requested Modified Cumulative Allocation Funding Source Contract Manager PHCD, or successor department $97,530,990.00 $37,650,877.00 $135,181,867.00 Federal Funds Crystal Coleman
Total $97,530,990.00 $37,650,877.00 $135,181,867.00

Track Record/Monitor
Rita Silva of SPD is the Procurement Division Director for the extension and the replacement solicitation.

Awarded Vendor
Vendor Principal Address Local Address Principal
Nan McKay and Associates, Inc. 1810 Gillespie Way El Cajon, CA 20 SE 3 Avenue 3 Floor Miami, FL Nan McKay

Due Diligence
Pursuant to Resolution No. R-187-12, due diligence was conducted in accordance with SPD�s Procurement Guidelines to determine vendor responsibility, including verifying corporate status and that there are no performance and compliance issues through various vendor responsibility lists and a keyword internet search. The lists that were referenced included convicted vendors, debarred vendors, delinquent contractors, suspended vendors, and federal excluded parties. There were no adverse findings relating to vendor responsibility.

Applicability of Ordinances and Contract Measures
� The two percent User Access Program does not apply.
� The Small Business Enterprise Selection Factor does not apply.
� Local Preference does not apply.
� The Living Wage Ordinance does not apply.

___________________________
Cathy Burgos, LCSW
Chief Community Services Officer