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AUTHORIZE AN AGREEMENT WITH AMERINAT FOR LOAN PORTFOLIO MANAGEMENT SERVICES FOR THE CITY OF STOCKTON
recommended action
RECOMMENDATION
It is recommended that the City Council by motion:
1. Approve an agreement with AmeriNat for loan portfolio management services, including loan servicing, compliance monitoring, and reporting, to ensure efficient management of the City’s loan programs, for a period of three years, with options to extend for up to an additional two years, with a not-to-exceed amount of $350,000.00; and
2. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of the motion.
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Summary
The City of Stockton manages a portfolio of loans funded through federal, state, and former redevelopment programs, aimed at housing, economic development, and community assistance. Since 2000, loan servicing has been outsourced to AmeriNat due to the complexity of administration and compliance requirements. With the current contract expiring March 18, 2025, staff issued a Request for Proposals (RFP) to seek a qualified service provider. AmeriNat was the sole respondent, and its proposal met all City requirements.
Staff recommends entering into a new agreement with AmeriNat (Attachment A - Standard Agreement) to continue loan portfolio management services, ensuring compliance, efficiency, and cost-effectiveness. The agreement will be funded through Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Low- Mod-Income Housing Fund (LMIHF) administration funds and is estimated to cost $70,000 per year, with fees subject to annual increases beginning July 1, 2026, based on the change in the national consumer price index, no less than 3%.
DISCUSSION
Background
The City administers a diverse loan portfolio, including housing rehabilitation, homebuyer assistance, multi-family rehabilitation and construction, micro-business, and special project loans. These loans are funded through Federal Community Development Block Grant (CDBG) and HOME Investment Partnership programs, state programs such as CalHome, and previously, with Redevelopments funds.
As of February 28, 2025, the City’s loan portfolio consisted of 318 loans with an outstanding balance of $119,403,028. Due to increasing loan volume, compliance requirements, and staff limitations, loan servicing was outsourced to AmeriNat in 2000. AmeriNat has since provided these services efficiently under a contract structure based on a fixed fee schedule.
Present Situation
On January 23, 2025, the City issued a Request for Proposals (RFP) (procurement posting PUR 25-019) to seek a qualified service provider. AmeriNat was the only firm that submitted a proposal in response to the RFP.
AmeriNat has a 40+ year history of providing loan services for government agencies. Based on their experience, the proposed agreement with AmeriNat will include, but is not limited to, the following services:
• Loan payment processing
• Account management and tracking
• Compliance monitoring and reporting
• Customer service support for borrowers
• Delinquency management and collection assistance
The proposed Fee Schedule for the cost of these services is included as Exhibit E in the attached Agreement.
FINANCIAL SUMMARY
The proposed action will have no financial impact on the General Fund or any other unrestricted fund.
Sufficient funds are available in the CDBG, HOME and LMIHF Administration accounts to pay for services. Funds will be budgeted into these accounts annually to pay for services provided through this Agreement, not to exceed $350,000.00 for the entire term and extension period.
Attachment A - Standard Agreement