Financial Advisor Agreement

Agency: State Government of Delaware
State: Delaware
Type of Government: State & Local
Posted Date: Nov 30, 2020
Due Date: Dec 11, 2020
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Bid Solicitation Details
Bid Status Details
for
Financial Advisor Agreement,
DSHA20001-FINANCEFA
Solicitation Ad Date 11/30/2020
Deadline for Bid Responses 12/11/2020 at 3:00 p.m. Local Time
Supporting Documents RFP - Materiel and Nonprofessional Services
Contact Information brian@destatehousing.com

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DELAWARE STATE HOUSING AUTHORITY
REQUEST FOR PROPOSALS
FOR
FINANCIAL ADVISORY SERVICES
I.
Overview
The Delaware State Housing Authority (DSHA) seeks firms interested in providing independent
financial advisory services to DSHA (the ‘Issuer”) under a multi-year contract. This Request for
Proposals (“RFP”) is issued pursuant to 31 Del.C. 4014, 4004(b)(1).
The proposed schedule of events subject to the RFP is outlined below:
Deadline for Receipt of Proposals
Notification of Award
Anticipated Date
3:00 p.m. EDT, December 11, 2020
December 28, 2020
II. Proposal Procedure
A. Proposals
Proposals should not exceed 15 pages in length, including the cover letter. One (1) copy
and One (1) in electronic format should be delivered to the address shown below.
Mail:
Ujesh Patel, Housing Financial Analyst Manager
Delaware State Housing Authority
820 N. French Street, 10th Floor
Carvel State Building
Wilmington, Delaware 19801
Proposals must be received by 3:00 p.m. EDT on December 11 2020. Questions about the
RFP should be directed to Ujesh Patel at (302) 577-5001 or ujesh@destatehousing.com. A
compilation of questions and answers will be made available for interested parties online at
www.destatehousing.com. additionally these questions and answers will be made
available as an addendum to the RFP at www.bids.delaware.gov
III. Scope of Services
DSHA seeks independent financial advisory services to serve the sole interests of the
Authority. The selected firm or firms will be precluded from acting as an underwriter or
agent on any financing arranged by the Authority. The firms will also agree that the contract
may be terminated at any time with or without cause. DSHA’s financial advisors will be
expected to assist the Authority in planning an appropriately-diverse debt portfolio,
structuring future debt transactions, and providing support for ongoing debt management.
Assistance and support includes, but is not limited to the following:
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General Advisory Service
Proposer shall provide the following general, non-transaction related
financial advisory services ("General Advisory Services") as may be requested
by DSHA from time to time:
1. Assist in the development of long-term strategic plans including strategies to effectively
utilize, leverage and enhance DSHA operating reserves, State appropriations, federal funds,
and other resources available to DSHA.
2. Apprise DSHA of new and creative financing techniques or concepts and advise DSHA
generally on strategy options and alternatives relating to the development of proposed
programs, project finance activities, and other affordable housing initiatives.
3. Conduct independent and objective reviews and evaluations of economic feasibility and
cost-effectiveness of programs, project finance transactions or other initiatives proposed to
DSHA by third parties including governmental entities, non-profit sponsors, for-profit
developers, investment banking firms and others.
4. Assist in preparing for and making presentations (relating to DSHA in general, rather than
to a particular transaction) to bond rating agencies that issue or maintain ratings on DSHA
securities.
5. Assist DSHA in making submissions and presentations relating to DSHA's past, current
and proposed financing activities to governmental entities, including the State Legislature, as
well as to private entities, such as financial institutions and foundations.
6. Evaluate and formulate recommendations regarding financial management
practices of DSHA, including matters relating to investment policies and strategies.
7. Evaluate the financial integrity of existing DSHA programs or projects and advise DSHA
regarding strategies to preserve or enhance the credit ratings of bonds relating to such
programs or projects.
8. Be available for consultation with any person or group interested in assisting
DSHA in the development of low or moderate income housing
9. Attend meetings of DSHA relating to financing activities or other activities.
10. Such other reasonably related services as may be requested by DSHA.
Transaction Advisory Services
Proposer shall provide the following financial advisory services relating to new issues, MBS
Sales, TBA Financing, Multi Family transactions, Tax Credit issuance remarketing, restructuring
or refunding’s of tax-exempt or taxable note or bond transactions (“Transactions Advisory
Services") as may be requested by DSHA from time to time.
1. Generally advise and consult with DSHA in structuring their transactions under the
single-family programs or multi-family program.
2. Assist DSHA by analyzing the merits of negotiated sales vs. competitive sales vs. private
placements of authority notes or bonds and offer recommendations on same.
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3. Coordinate the activities of DSHA’s financing team in effecting the issuance of notes or
bonds by DSHA.
4. Advise and assist DSHA in preparing Requests for Proposals from and in selecting services
providers (underwriters, bond counsels, tax counsel, financial printers, cash flow verifiers,
etc.) required to assist in effecting the financing structure.
5. With respect to proposed single-family mortgage lending programs, advise and assist in
establishing appropriate program parameters and requirements including mortgage loan
rates/terms, servicing arrangements, insurance coverages, participation by
lenders/builders/realtors, loan origination periods, etc. and advise DSHA generally as to the
financial integrity of the proposed programs.
6. Assist in the preparation of, and/or review and comment on (i) authorizing Resolutions,
bond trust indentures, notices of sale and disclosure documents of DSHA relating to the
financing structure, (ii) loan origination and servicing agreements relating to Home
Ownership loan programs, and (iii) loan agreements and regulatory agreements relating to
multi-family project finance transactions.
7. Review the maturities, redemption provisions, call premiums, interest rates, reserve
requirements, system of funds and accounts, flow of funds and other structural characteristics
or securities features of proposed note or bond issues and advise DSHA as to the financial
integrity of such issues.
8. Review cash flow analyses or other financial projections prepared by parties other than
source, budgeted expenditures, debt services requirements, application of bond proceeds,
investment of funds and other program parameters to assess the reasonableness of the cash
flow projections based on such assumptions.
9. Currently, DSHA relies on Senior Underwriter to run cash flows for Single Family bond
transactions. Firm should describe and demonstrate their capacity to provide such services,
upon special request. Cash flow services are not expected to be customary. However upon
request of DSHA, proposer may be asked to prepare detailed cash flow projections and
analyses of specific bond issues and related mortgage loan programs. Firms will be expected
to provide cash flow analysis for multi-family projects, such projections and analyses to be
accompanied by a listing of all significant underlying assumptions. (for reliance upon rating
agencies, bond trustee, bond counsel, bondholders, underwriters, municipal analysts or other
third parties)
10. Assist DSHA in making information available to bidding syndicates, individual securities
dealers, municipal analysts, institutional investors, credit enhancers.
11. Advise DSHA and perform calculations necessary to demonstrate compliance
with certain provisions of the federal tax law.
IV. Requested Information
1. Describe briefly your firm’s organizational structure, primary business(es) engaged in,
ownership, business affiliations, number and location of offices, and number of
professional staff at each location.
2. Identify the individual who will be responsible for the Authority’s account, including
title, resume, area of specialization, expertise on federal and state law specific to
Delaware, the Authority and its bonds, other clients currently served, client references,
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and location of primary office. Provide the same information for any individuals who
will serve the Authority’s account.
3. In addition to financial advisory services, describe any other services your firm can make
available to the Authority during an engagement. Provide the approximate contribution
to the firm’s total revenue.
4. Provide a list of major clients actively served and those on a retainer basis, with a
description of the services provided (noting whether on-going or transaction-specific),
dates, and contract names and numbers for reference purposes. Provide a list of
underwriters or agents with which your firm has collaborated with on behalf of your
clients and provide contact information for reference purposes.
5. Describe the frequency, variety, and size of recent housing issues or transactions for
which your firm acted as advisor. Describe the complexity of structures recommended.
6. For each of the transactions (Single Family & Multi-Family)for which you wish to
provide financial advisory services:
Describe your firm’s knowledge of and expertise in the issuance of tax-exempt
housing bonds and notes.
Describe resources you can provide to ensure the Authority receives the highest
and best consideration for its issuance.
Describe how you would consider structuring the Authority’s offerings, any
credit-rating strategy you may consider, and any investor-marketing strategy you
may consider.
Describe any policy considerations you might recommend.
7. Describe any contractual relationships you may have with other firms that may be
working on the Authority’s accounts and/or describe any contractual relationships you
may have with other State agencies.
8. Consider a multi-year contract.
Provide a per transaction total compensation structure along with a sliding scale fee
structure based on per bond issued.
Provide a non-transactional hourly cost structure.
Note that invoices will be subject to review and payment will be made upon approval by
DSHA.
9. Identify and describe any litigation, mediation, arbitration, administrative proceedings, or
any investigation in which your firm is or was involved.
10. Discuss any other considerations or factors that impact upon your ability to perform the
tasks relevant to or associated with this proposal.
11. Provide proof that you are currently authorized to do business in Delaware (i.e., copy of
valid Delaware business license), or indicate that you will provide such proof if selected
as the successful bidder prior to the commencement of the contract.
12. Execute and attach to the proposal a completed Statement of Commitment and Non-
Collusion (see attached sample for format).
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V. Proposal Selection Criteria
All proposals shall be evaluated using the same criteria and scoring process. The following
criteria will be used to evaluate proposals:
Evaluation Item
Expertise in the housing industry
Capacity to meet Authority requirements including size, operational
capability, and location
Demonstrated ability with respect to complexity, frequency, variety, and
size of public financial issues
Demonstrated ability with respect to analysis, policy issues,
communication
Overall cost of services
Maximum
Points
35
25
25
10
5
Terms and Conditions
1. The Authority reserves the right to reject any or all proposals; the right, in its sole
discretion, to accept the proposal it considers most closely aligned with its interests; and
the right to waive minor irregularities in the procedures. The Authority also reserves the
right to reject all proposals and seek new proposals.
2. The Authority reserves the right to request clarification of information submitted and to
request additional information from one or more respondents.
3. The Authority will not be liable for any costs incurred in the preparation of this proposal.
4. The Authority reserves the right to conduct oral interviews of any or all bidders prior to
selection, and will not be liable for costs incurred by the bidders in connection with such
interview.
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