Project Information

Bid Title

Foster City Affordable ADU Loan Program

Issuing Agency

City of Foster City

Location

California

Published Date

Dec 23, 2025

Closing Date

Feb 20, 2026

Government Level

State & Local

Status

Closed

Original Source

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Bid Documents

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Project Description

Foster City Affordable ADU Loan Program

Bid/RFP Status:

Open - accepting bids and proposals

Bid/RFP Due Date:

Friday, February 20, 2026 - 5:00pm

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The City of Foster City is requesting proposals from qualified firms interested in administering and delivering the City’s Below Market Rate (BMR) Accessory Dwelling Unit (ADU) Loan Program known as the “Affordable ADU Program” (“Program”). Through this program, eligible homeowners can access interest-free financing in exchange for renting their ADUs to low-income households for ten years. The City’s goal is to help build eight (8) deed-restricted ADUs that support the 2023–2031 Housing Element, Program H-D-4-b ADU/JADU Financial Incentive Program (page HE-94):

Provide or partner with another organization to provide a financial incentive program for single-family homeowners to construct an ADU/JADU that is restricted for lower-income households for 10-15 years, with an additional incentive amount for units subject to a preference for identified categories of special needs people who would benefit from coordinated onsite services, including but not limited to people with developmental disabilities.

The City of Foster City is seeking to engage with a selected entity that responds to this RFP (“Contractor”) to administer the program in one of the following types of programs (“Program Type”):

• Loan Administration Only: Contractor will provide and manage financing only – homeowners find their own ADU general contractor/provider.
• Loan Administration and ADU Construction Services: Contractor will serve as both the general contractor for custom-built ADUs and provide and manager of financing of the ADUs for the homeowners. Contractor may partner with general contractor, and/or financing entity to form a team for this RFP.
• Loan Administration and ADU Sales and Installation: Contractor will serve as the seller for pre-manufactured or pre-fabricated ADUs, manager of installation, and manager of the financing of the ADUs for the homeowners. Contractor may partner with general contractor, and/or financing entity to form a team for this RFP.

Schedule:

February 13, 2026 by 5:00 pm: Deadline to submit questions to njabba@fostercity.org

February 20, 2026: Proposals due by 5:00 PM to njabba@fostercity.org

Contract awarded: approximately 90 days after deadline

Supporting Documents

rfp_adu_loan_program_12.2023.2025.pdf (842 KB)

Attachment Preview

City of Foster City Request for Proposals

Below Market Rate Accessory Dwelling Unit Loan Program

“Foster City Affordable ADU Program”

RFP Schedule:

Release Date: December 23, 2025

Deadline for Questions/Comments: February 13, 2026

Proposals Due: February 20, 2026

Please send questions, comments, and proposals via email to:

njabba@fostercity.org Nori Jabba, Housing and Sustainability Manager

OFFICIAL CONTACT:

Nori Jabba

City of Foster City

Community Development

610 E. Hillsdale Blvd.

Foster City, CA 94404

650-286-3230

njabba@fostercity.org

Table of Contents

Request for Proposal............................................................................................................... 1

Attachment A: Sample Agreement for Professional Services....................................................10

Exhibit A: Scope of Work ....................................................................................................19

Exhibit B: Fee Schedule......................................................................................................20

Exhibit C: Insurance Requirements.....................................................................................21

Attachment B: Draft Program and Loan Underwriting Guidelines .............................................28

City of Foster City Request for Proposals (RFP)

Below Market Rate Accessory Dwelling Unit Loan Program

(“Foster City Affordable ADU Program”)

1. SUMMARY

The City of Foster City is requesting proposals from qualified firms interested in administering

and delivering the City’s Below Market Rate (BMR) Accessory Dwelling Unit (ADU) Loan Program

known as the “Affordable ADU Program” (“Program”). Through this program, eligible

homeowners can access interest-free financing in exchange for renting their ADUs to low-

income households for ten years. The City’s goal is to help build eight (8) deed-restricted ADUs

that support the 2023–2031 Housing Element, Program H-D-4-b ADU/JADU Financial Incentive

Program (page HE-94):

Provide or partner with another organization to provide a financial incentive program for single-

family homeowners to construct an ADU/JADU that is restricted for lower-income households for

10-15 years, with an additional incentive amount for units subject to a preference for identified

categories of special needs people who would benefit from coordinated onsite services, including

but not limited to people with developmental disabilities.

The City of Foster City is seeking to engage with a selected entity that responds to this RFP

(“Contractor”) to administer the program in one of the following types of programs (“Program

Type”):

a) Loan Administration Only: Contractor will provide and manage financing only –

homeowners find their own ADU general contractor/provider.

b) Loan Administration and ADU Construction Services: Contractor will serve as both

the general contractor for custom-built ADUs and provide and manager of financing of

the ADUs for the homeowners. Contractor may partner with general contractor, and/or

financing entity to form a team for this RFP.

c) Loan Administration and ADU Sales and Installation: Contractor will serve as the

seller for pre-manufactured or pre-fabricated ADUs, manager of installation, and

manager of the financing of the ADUs for the homeowners. Contractor may partner with

general contractor, and/or financing entity to form a team for this RFP.

Management of financing includes underwriting and administering payment-deferred, no-

interest loans issued by Contractor using funds received from the City under the agreement the

Contractor enters into with the City. The Contractor will act as lender and the City will not be

party to the loan agreements with borrowers. Management of the construction/installation

process includes oversight of design, construction, and/or installation of the ADUs,

management of the permitting process, and collaborating with City staff to ensure the

Program’s requirements are met. Respondents may select (a), (b), or (c) as listed above to

administer the program, depending on the Respondent’s entity type and areas of expertise.

City of Foster City Affordable ADU Program RFP

1

Respondents must agree to hold a City of Foster City business license during the term of the

contract.

Respondents applying for program type (b) or (c) must also hold a valid California General

Contractor’s License

The initial contract term with the selected Contractor for this program is three years to launch

the program, with the option for one additional three-year extension at the City’s discretion. The

intent is to issue at least eight (8) loans during the initial three-year contract period, with at least

and additional eight (8) during the three-year extension period, if the City exercises its option to

extend. Prior to termination of the Agreement, the City will execute a separate agreement with

the selected contractor for continuing loan administration services for existing loans only once

after all loans have been issued.

Homeowners qualifying for the Program may receive up to $125,000 in payment-deferred, zero

interest City financing for their ADU if they commit to renting the ADU as part of the City of Foster

City’s Below Market Rate (BMR) Rental Housing Program for 10 years, or up to $150,000 for

ADUs rented with a preference for households needing supportive-housing. Homeowners

participating in the Program also benefit from accelerated permitting using pre-approved ADU

plans. The City will work with the selected contractor to pre-review the Contractor’s designs for

the program.

All ADUs must comply with Foster City Municipal Code Chapter 17.78 and the City’s Below

Market Rate (BMR) Housing Program requirements. This relationship between the City and the

Contractor aims to expand affordable housing opportunities for low-income and special-needs

residents through high-quality, code-compliant ADUs.

2. ATTACHMENTS

• Attachment A: Sample Agreement for Professional Services (“Agreement”)

A sample agreement is provided for review. Proposers should carefully review all terms as

well as Exhibit A (Scope of Work), Exhibit B (Fee Schedule), and Exhibit C (Insurance

Requirements), and indicate any exceptions in their proposal, noting page numbers of RFP.

• Attachment B: Draft Affordable ADU Program and Loan Underwriting Guidelines

(“Program Guidelines”)

Proposers should carefully review the Guidelines and indicate any requested changes or

exceptions or in their proposal, noting page numbers. The City anticipates that the scope of

work for the Agreement will incorporate the Program Guidelines by reference into the

contract.

3. BACKGROUND

Foster City, incorporated in 1971, is a master-planned community located in San Mateo County.

City of Foster City Affordable ADU Program RFP

2

The City covers approximately four square miles and lies between San Francisco and Silicon

Valley, with close access to both Highway 101 and Highway 92. Home to roughly 33,000

residents, Foster City is known for its diverse population, planned neighborhoods, and limited

remaining space for new development. The community is protected by an eight-mile levee

system along the bayfront and a lagoon system that provides flood storage and drainage.

4. GENERAL PROVISIONS AND CONDITIONS

The City reserves the right to:

1. Reject any and all responses.

2. Negotiate with more than one consultant.

3. Waive minor irregularities in a response.

4. Cancel, revise, or extend this solicitation.

5. Revise the Agreement and/or Program Guidelines prior to final approval.

6. Request additional information on any response beyond that required by this RFP.

7. Modify the selection process outlined in this RFP upon written notification to all

respondents who have not been rejected at the time of modification.

8. Request substitution of sub-consultants.

Should discrepancies or omissions be found in this RFP, or should there be a need for

clarification, questions, or comments regarding this RFP, they must be received by deadline

listed below and should be sent to Nori Jabba, Housing and Sustainability Manager, at

njabba@fostercity.org.

5. PROPOSED TENTATIVE TIMELINE

The tentative RFP timeline is provided for the convenience of the Proposers but may be subject

to change at any time by the City. Any such changes will be stated in an addendum to this RFP.

The tentative RFP timeline is as follows:

RFP ACTION

RFP Issued

Pre-Proposal Meeting

Deadline for questions and clarifications

Proposals Due

Finalist Identified

Consultant Interviews

Consultant selection & contract preparation

DATE

December 23, 2025

None

February 13, 2026

February 20, 2026

March 2026

March 2026

Estimated to be within 60 days of RFP

deadline

City of Foster City Affordable ADU Program RFP

3

Contract awarded

Work commences

Estimated to be within 90 days of RFP

deadline

Estimated to be within 120 days of RFP

deadline

6. RELATED DOCUMENTS/LINKS

Foster City Housing Element

Foster City’s 2023–2031 Housing Element establishes a framework for meeting local housing

needs and complying with State housing laws. The Housing Element identifies community needs

and establishes goals and programs that ensure Foster City grows in an equitable, climate-

resilient, and consistent manner with the City’s long-range plans. The ADU Loan Program is one

of the implementation tools identified in the Housing Element to support the production of

affordable units.

7. SCOPE OF WORK

The following eight (8) tasks are associated with this RFP:

Task 1: Project Initiation and Project Management

At the start of the project, the consultant will participate in a kick-off meeting with City staff to

review objectives, roles, communication procedures, and reporting expectations. The

Contractor will work with staff to refine and confirm the project timeline. Ongoing project

management responsibilities include regular check-ins, progress updates, coordination, budget

tracking, and responsive communication.

Task 2: Program Administration and Homeowner Intake

The Contractor will manage all Program administration tasks, including homeowner intake, and

selection of eligible applicants on a first-come, first-served basis. The Contractor shall schedule

feasibility consultations, prepare feasibility reports, and assist homeowners in selecting an

eligible ADU model, as applicable. The Contractor is responsible for developing and maintaining

all loan applications, coordinating documentation, and managing the applicant process from

initial inquiry through project completion.

Task 3: Loan Origination, Underwriting, and Servicing

The Contractor will originate, underwrite, and administer no-interest loans. The Contractor will

use funds received from City pursuant to the Contractor’s agreement with City to fund the loans.

The Contractor will provide or secure supplemental private financing as needed for each project

and must manage the loan documentation and processing in accordance with Program

guidelines. The Contractor will establish and manage a loan re-use account, collect payments

from homeowners, enforce repayment using commercially reasonable practices up to and

including foreclosure, and track repayment events. At the conclusion of an initial three-year

term, during which at least eight (8) Affordable ADU loans will be made, the City will have the

City of Foster City Affordable ADU Program RFP

4

Commodity Codes

• NAICS 541611Administrative Management and General Management Consulting Services

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