ITEM 6-X

Council Meeting Date:  May 14, 1991

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation  to  Authorize  the  City   Manager   to
          Negotiate  and  Execute a Contract to Prepare a Housing
          Needs Assessment,  Revenue  Source  Study  and  Program
          Design  Review  Report  for  the  Proposed  Local  Rent
          Subsidy Program

INTRODUCTION

This report requests that the City  Council  authorize  the  City
Manager  to  negotiate  and execute a contract with David Rosen &
Associates to prepare a Housing Needs Assessment, Revenue  Source
Study  and  Program  Design  Review Report for the proposed Local
Rent Subsidy Program and approve an allocation of up  to  $91,000
to finance the contract.

BACKGROUND

On  June  26,  1990,  staff  was  directed  to  investigate   the
feasibility  of  a locally-funded Rent Subsidy Program that would
assist very low income, rent-burdened tenants currently  residing
in rent-controlled apartments.

As a result of an informal competition, staff recommends the firm
of  David  Paul  Rosen  &  Associates  to  undertake the scope of
professional services required.  The informal competition process
included  a  Request  for  Qualifications  from  eight consulting
firms.  An extensive review of the qualifications, previous  work
products, and references was conducted by staff.

David Rosen  &  Associates  is  a  nationally  recognized  public
interest  firm  specializing  in capital formation strategies for
affordable housing.  The firm has extensive experience in  policy
development,  market analyses, development of alternative revenue
sources, program design  and  legal  and  economic  analyses  for
alternative  revenue  sources.   David  Rosen  &  Associates  has
proposed to undertake this study with the assistance of  Goldfarb
and   Lipman,  an  experienced  law  firm  headquartered  in  San
Francisco.

BUDGET/FINANCIAL IMPACT

On June 26, 1990, City Council appropriated  $250,000  to  assess
the  feasibility  of a Local Rent Subsidy Program subject to City
Council approval.  Funds  are  available  for  this  contract  in
account   number  01-720-262-20091-8900-9945.   Authorization  to
proceed with this project requires no appropriation.

RECOMMENDATIONS

Staff recommends that the City Council authorize the City Manager
to  negotiate  and  execute  a  contract  with David Paul Rosen &
Associates, in an amount not to  exceed  $91,000,  to  prepare  a
Housing  Needs  Assessment,  Revenue  Source  Study,  and Program
Design Review Report for the proposed Local Rent Subsidy Program.

Prepared by:  Peggy Curran, Director C/DD
              Nancy West, Housing Program Manager
              Johanna Gullick, Senior Administrative Analyst