RFP for Swap, Derivative and Investment Valuation Services, GASB Compliance

Housing Finance Authority (the “Authority” or “CHFA”) was created in 1969 by the State Legislature, as a public instrumentality and political subdivision of the State of Connecticut for the purpose of increasing the supply of and encouraging and assisting in the purchase, development, and construction of housing for low and moderate income families and persons throughout the State. CHFA’s stated mission is to help alleviate the shortage of affordable housing for low and moderate income families and persons in Connecticut, and when appropriate, to promote or maintain the economic development of the State through employer-assisted housing. II. Proposed Scope of Services (the “Services”) The Authority is requesting Proposals (the “RFP”) from qualified firms (the “Firms”) who are interested in becoming a provider (the “Provider”) of valuation services in connection with existing and outstanding derivative instruments including swaps and investments including bonds held by the Authority

for purposes of complying with the Authority’s reporting requirements. The duties of the Provider shall include, but not be limited to: 1. Produce monthly derivative valuation report. The information must include or satisfy: a. Mark-to-market value b. Fair value c. Option value d. Accrued interest e. Other relevant data 2. Produce annually derivative and investment valuation reports. The information must include or satisfy: a. Information referenced under II(1) above, as applicable. b. Measurement and effectiveness based on GASB or other industry standards as required or applicable including, but not limited to: i. GASB 53 ii. GASB 72 2 3. Produce and maintain the swap exposure table (the “Swap Table”) for the Authority’s bond Official Statements. 4. Notify the Authority of any rating changes relating to the derivative counterparties. The proposed engagement will be for a period no longer than three years and it is expected to begin July 1, 2020. Since its inception, the Authority has issued over $19 billion of tax exempt and taxable bonds of which proceeds from the bonds were used to purchase single family loans and make multifamily loans. Over the next three years, the Authority expects to issue $1 billion to $2 billion of Housing Mortgage Finance Program Bonds, a portion of which as variable rate bonds. As of December 31, 2019, the Authority has 39 swaps with notional outstanding of approximately $901 million. None of the Authority’s swaps qualifies under the Consistent Critical Terms (the “CCT”) method. For more information about the Authority, including its derivative instruments and audited financial statements, please visit www.chfa.org or www.emma.msrb.org. III. Evaluation Criteria Firms will generally be considered on the basis of their response to this RFP, additional written information as requested by CHFA, face to face and oral interviews, if any, against the following criteria: 1. Reputation and experience of the Firm 2. Responsiveness to CHFA’s needs 3. Experience with the State Housing Finance Agencies (the “HFAs”) 4. Experience with GASB reporting compliance 5. Competitiveness of proposed cost 6. Software capabilities to provide the requested Services 7. Financial capability to provide the requested Services and overall financial stability 8. Commitment to Connecticut IV. Requested Information Each respondent to the RFP must provide the following information: 1. A brief description of your firm in providing the Services as described in this RFP. 2. Indicate the total number of staff in your firm and the number of staff that you expect to assign to this engagement. Please list those people with their résumés. What are their other responsibilities? 3. Describe your firm's experience with HFAs. Which HFAs (or other similarly sized clients) do you represent and provide similar Se