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Presentation, discussion, and possible action regarding a material change to the Multifamily Management System (MMS) contract
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RECOMMENDED ACTION
recommendation
WHEREAS, the Department previously entered into a contract for the development of the Multifamily Management System (MMS), a software platform intended to support the multifamily application process from intake through underwriting, award, and reporting;
WHEREAS, Tex. Gov’t Code §2155.088 requires approval by the Governing Board for a material change to an awarded contract for goods or services, including an increase in the total consideration to be paid under a contract by at least 10%; and
WHEREAS, due to scope refinements, project timing impacts, and technical requirements encountered during implementation, the total contract amount is projected to increase to approximately 117% of the original contract value, thereby requiring Board approval;
NOW, therefore, it is hereby
RESOLVED, that the requested material change to the MMS contract is approved as presented at this meeting, and the Executive Director and his designees are each authorized, directed, and empowered to take all necessary action to effectuate the foregoing.
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BACKGROUND
The Multifamily Management System (MMS) project was initiated to develop a customized system to support the Department’s multifamily application and underwriting processes, with the goal of improving data management and reducing reliance on manual workflows.
The original contract amount for MMS development was approximately $3.53 million, with a total project budget of $3.825 million approved through the 2024-2025 Legislative Appropriations Request (LAR).
As implementation progressed, the Department worked with the vendor to define and develop system functionality aligned with program requirements. During this process, additional scope elements were incorporated, and project timelines were impacted by coordination with external technology infrastructure, external user feedback, and internal resource constraints. These factors resulted in adjustments to the contract amount and duration.
The resulting contract amount exceeds the statutory threshold requiring Board approval. The requested Board approval is necessary to authorize the adjusted contract amount and allow for proper project closeout and reconciliation.
PROJECT SCOPE AND DRIVERS OF CHANGE
The MMS project involved development of a custom system intended to integrate application intake, underwriting, and program management functions. As the project progressed, several factors contributed to contract adjustments:
• Scope Refinement: The Department expanded development of an underwriting module using PowerApps and Power BI to replace spreadsheet-based processes and support more structured data handling.
• Technical and Infrastructure Coordination: The project experienced delays associated with coordination of cloud and virtual server infrastructure through the Department of Information Resources (DIR), which extended the implementation timeline.
• Project Complexity: The multifamily program includes complex federal and state requirements and policy considerations under the Qualified Allocation Plan (QAP), which required additional development effort as requirements were further defined. Additional features were developed for application intake in response to external user feedback.
• Schedule Impacts: Delays related to infrastructure setup and staff availability extended the overall timeline, increasing the duration of vendor engagement.
FINANCIAL SUMMARY
• Original Contract: $3.53 million
• Adjustments:
o $315,000 contract extension (project delays associated with DIR coordination and infrastructure setup)
o $300,000 scope expansion (PowerApps/Power BI underwriting module)
• Estimated Final Contract: Approximately $4.1 million (~117% of original contract)
• Budget Impact: Approximately 7% above the $3.825 million LAR-approved budget
SUMMARY
The MMS project reflects a multi-year effort to develop a customized system to support the Department’s multifamily programs. The contract adjustments described above were driven by scope refinements, project complexity, and timing impacts encountered during implementation.
The requested approval is required to authorize the adjusted contract amount in accordance with state law and to allow for proper closeout of the Phase I contract. Staff will continue to manage final reconciliation and closeout activities in accordance with applicable procurement and contract requirements.
The Department is separately evaluating future system options to support long-term Department needs across all multifamily divisions.