Request for Proposals for Single Family Trustee Services The Texas State Affordable Housing Corporation is requesting proposals for single family trustee services for a period five years with an option to renew at the discretion of both parties. BACKGROUND The Texas State Affordable Housing Corporation (the Corporation ) is a selfsustaining non-profit entity whose mission is to facilitate the provision of affordable housing for low-income Texans who do not have comparable housing options through conventional financial channels. Enabling legislation, as amended, may be found in the Texas Government Code, Chapter 2306, Subchapter Y, Sections 2306.551 et seq. All operations of the Corporation are conducted within the State of Texas. The Corporation s offices are located in Austin, Texas. The Corporation is organized, operated and administered in accordance with its enabling legislation as a 501(c)(3) nonprofit corporation. The Corporation is authorized to issue both 501(c)(3) and private activity bonds for the purpose of financing singlefamily mortgages. Additionally the Corporation administers a mortgage credit certificate program and a TBA program. Under the TBA program the Corporation finances first-lien mortgage loans through a non-bond financing program utilizing the conventional loan market. SCOPE OF SERVICES The Trustee must provide the following minimum services to the Corporation. 1. Assist the Corporation and the Corporation s consultants with structuring bond financings and preparing or reviewing bond documents. 2. Invest and transfer bond proceeds and/or other funds in accordance with the Corporation s instructions, federal and state laws/regulations and the requirements of indentures. 3. Track and report on investments for arbitrage rebate compliance, compliance with the Texas Public Funds Investment Act and any other requirements found in the bond indenture. 4. Ensure that bond principal and interest payments are made as scheduled.
5. Establish and maintain bank and investment accounts as required to manage each bond program. 6. Maintain financial accounting records for all bond related transactions. 7. Provide reports on bond issues and fund balances to the Corporation on a quarterly basis, semi-annual basis, or as otherwise requested by the Corporation or required by the bond indentures. 8. Prepare debt service schedules quarterly for each outstanding bond series. 9. Prepare schedules, confirmations or other information requested by the Corporation s independent financial auditor. 10. Make disclosures and notifications to bondholders, the Corporation and others in compliance with SEC rules and the indentures. 11. Participate and assist rating agencies with any review of the Corporation s Bond Program activities. 12. Any other reasonable services required of the trustee by the Corporation through the indenture and bond documents. SELECTION CRITERIA The Corporation will make its selection based upon the demonstrated competence, financial stability, experience, knowledge, qualifications and reasonableness of proposed fees. The Board of Directors will make the final selection based on staff s recommendation. All things being equal, the Corporation will give priority to respondents whose principal place of business is located in Texas and respondents who are qualified Historically Underutilized Businesses or Minority Owned Businesses. The Corporation reserves the right to negotiate all elements that comprise the proposal of the respondent to ensure that the best possible consideration be afforded to all concerned. The Corporation reserves the right for any reason to reject any and all proposals and to re-solicit. The Corporation reserves the right to select a respondent for specific purposes or for any combination of specific purposes and to defer the selection of any respondent to a time of the Corporation's choosing.
COST INCURRED TO RESPOND All costs directly or indirectly related to the preparation of a response or any oral presentation required to supplement and/or clarify a response which may be required by the Corporation shall be the sole responsibility of and shall be borne by the respondent. PROPRIETARY INFORMATION If a respondent submits proprietary information that should not be publicly disclosed, the proprietary information must be clearly identified at the time of submission. If the respondent fails to identify proprietary information, all information in the submission will be deemed non-proprietary and will be made available upon request pursuant to the Public Information Act after the review process has been completed. INDEMNIFICATION The respondent agrees to indemnify, defend and hold harmless the Corporation, the State of Texas, its officers, agents and employees from any and all claims and losses accruing or resulting from the respondent s performance of trustee services for the Corporation. PROPOSAL FORMAT AND CONTENT All proposals should include at least the following information and material should be presented in sequence as related to the RFP. A. Title Page The proposal must contain a title page identifying this request for proposals and providing the financial institution s name, address and phone number; the name, title and electronic mail address of the respondent s contact person; and the date the proposal was submitted. B. Statement of Qualifications A statement of qualifications may include any information that the respondent believes to be germane to the Corporation s selection process. Proposals should include any supplemental information that the respondent believes will enable the Corporation to better evaluate the respondent s qualifications. The proposal should address or include the following items. 1. The latest available Statement of Condition and Annual Report;
2. The number and dollar value of single family mortgage revenue bond programs for which your institution serves or served as Trustee in the last three years; 3. A description of your institution s experience, including any transactions which demonstrate an ability to administer a variety of bond programs, including but not limited to single family housing (tax exempt and taxable); 4. A description of your institution s ability to provide the Corporation with centralized and accurate reporting for each bond series and ability to generate trustee statements that are clear, concise and userfriendly; 5. A description of your institutions ability to work with an auditor on an annual basis to produce an audited financial statement; 6. A description of your institution s ability to provide disclosure information and investor information; 7. A description and estimate of your institution s single family trustee fees; 8. Names and brief resumes of all key personnel who will be assigned to this project and the primary responsibilities assigned to each person; 9. Location of trust offices and branch locations handling the Corporation s account. 10. Name, address and telephone number for the contact person in your organization authorized to negotiate agreement terms and render binding decisions on contract matters. C. Form of Engagement Letter The proposal must contain as an attachment the form of the respondent s engagement letter, which at a minimum, must describe (i) the services to be provided as the Corporation s Single Family Trustee and compliance with all laws related thereto, and (ii) the respondent s quote or pricing structure for fees and expenses. D. Conflict of Interest Although the Trustee will be an independent contractor for the Corporation and not an employee, to avoid all possibility of conflicts of interest, the proposal must contain a certification that none of the owners, officers, or stockholders of the respondent and none of their families are related within the third degree of consanguinity or the second degree of affinity to any Corporation employee or any member of the Corporation s Board of Directors. E. References
Names, addresses and telephone numbers of three references we can contact concerning your institution s performance as Trustee. F. Proposal Acceptance Period The proposal must contain a statement that the proposal is valid for a period of one hundred and twenty (120) days subsequent to the submission date. SUBMISSION DIRECTIONS The deadline for submissions in response to this RFP is Monday, March 10, 2014. No proposal will be accepted after 3:00 P.M. on that date. Responses should be emailed to Melinda Smith at msmith@tsahc.org. Faxed responses will not be accepted. FURTHER INFORMATION To obtain further information about the Corporation or this RFP, you may visit our website at www.tsahc.org or call Melinda Smith at 512-904-1399 or email her at msmith@tsahc.org. Applicants must certify, by signing below, that they have read and understand this Request for Proposals and agree to fulfill the duties and responsibilities required by the Corporation of Trustees for the Single Family Programs.
By: (print) Signature: Date: Note: submit a scanned copy of this page, signed and dated, with your completed response.