TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Carl Stiehl, City Planner
SUBJECT:
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Agreement between Murrieta Housing Authority and RSG, Inc. for Assistance with Various Housing Programs
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ABSTRACT
This agenda report recommends approval of a new agreement between the Murrieta Housing Authority and RSG, Inc. (RSG) to perform various housing services, including compliance monitoring, annual reporting, homeownership program administration, and other as-needed support. These services will assist the Murrieta Housing Authority with expanding housing options, addressing the needs in the current Housing Element, and implementing the Revolving Loan Fund program.
RECOMMENDATION
recommendation
Amend the Fiscal Year 2026/27 Operating Budget to establish an additional appropriation of $87,580 as detailed in the fiscal impact statement;
Approve the Agreement between Murrieta Housing Authority and RSG for affordable compliance monitoring, annual reporting, housing program administration, and on-call housing consulting services in an amount not-to-exceed $182,580 annually;
Find that the proposed action is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15378 for the reasons specified in this report; and
Authorize the City Manager to execute the Agreement.
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PRIOR ACTION/VOTE
On June 20, 2023, the City Council approved an Agreement between the Murrieta Housing Authority and RSG, Inc. for on-call housing services (Vote: 5-0).
CITY COUNCIL GOAL
This item aligns with the City Council goal to plan, program and create infrastructure development.
DISCUSSION
The City of Murrieta (City) had a Redevelopment Agency that performed various housing activities until it was dissolved pursuant to state law - SB 341. In its place, the Murrieta Housing Authority (MHA) was formed. The MHA currently monitors hundreds of affordable units within the City, and with the completion of additional affordable units in the next year, the need for additional housing services is anticipated. The MHA has multiple responsibilities related to asset management and housing development, and the need for additional services arises that are impossible to predict in advance. The MHA requires annual on-going assistance with compliance monitoring, preparing reports to the State, managing the revolving loan fund program, and various other on-call housing services. The MHA has signed agreements with developers in recent years for projects that will add hundreds of affordable units to its oversight once built.
To maintain compliance with state and federal requirements, the MHA issued a public notice and a Request for Proposals (RFP) on May 29, 2026, soliciting proposals and statements of qualifications from highly qualified and experienced firms to provide general housing consultant services. The services to be provided to the MHA include assistance on various housing tasks with five (5) existing housing developments; up to five (5) additional agreements are anticipated. Monitoring activities include, but are not limited to, the following services:
• Annual reporting;
• Statutory payment calculations and other financial-related services;
• Evaluation of economic and market feasibility studies of proposed development projects;
• Preparation and/or review of financial and proforma analysis;
• Real estate advisory and negotiation services;
• Implementation agreements and special services;
• Site assembly coordination;
• Relocation services;
• Affordable housing project services, including compliance strategy plans and monitoring deed restriction services;
• Income qualifications of affordable housing units;
• Preparing agenda materials, and
• Special project activities, and preparation of agenda materials and related reports for the hearing.
The selected consultant, pursuant to the RFP, is expected to review the existing housing services currently provided in the scope of work to the Housing Authority under its existing service contracts. Emphasis in the RFP was placed on developing a clear, concise work program strategy for the MHA each year.
Responses to the RFP were due June 19, 2026. Before the end of the submittal due date, the City received one (1) proposal from RSG. The proposal was evaluated by City staff within the Planning Division of the Development Services Department using the following criteria:
• Demonstration of a clear project understanding/project approach to the scope of work;
• Relevant local experience with a similar type of housing compliance and reporting, and housing authority or former redevelopment agency experience with adequate references in the southwest Riverside County area or Southern California in general;
• The professional qualifications, technical ability, and capability of the team assigned to the project with relevant experience in California;
• The consultant’s ability to dedicate available personnel resources within the update timeframe of the contract; and
• An overall subjective evaluation.
An evaluation of RSG’s proposal for consultant services indicates a clear understanding of the scope of work, relevant experience, qualifications, and availability of personnel. Therefore, staff determined RSG will meet the City’s needs for the desired work as outlined in the RFP. The RSG team has the requisite housing experience, having previously provided services to the City for many years. They are experienced working with the City on various general housing tasks, and their rates are competitive with the market as reviewed by staff.
The agreement with RSG covers a three-year term, covering August 2026 through August 2029, with the ability to extend for a one-year extension based on satisfactory performance of services. The proposed base cost and pricing for the services provided by RSG is $182,580, annually.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(b)(2) and 15060(b)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly.
FISCAL IMPACT
The fiscal impact associated with the approval of the agreement is $182,580 per fiscal year. The three-year contract fiscal impact is $547,740.
A budget of $95,000 is available in the Fiscal Year 2026/27. If the agreement is approved, the staff recommends amending the Fiscal Year 2026/27 Operating Budget to establish an additional appropriation of $87,580 using the Low Mod Income Housing Fund (322) Unassigned Fund Balance for as-needed services (GL 3220040-60480) listed in RSG, Inc.’s proposal.
ATTACHMENTS
ATT 1 - Agreement between the Murrieta Housing Authority and RSG, Inc.