<PAGE>

                                                                    EXHIBIT 10.2


          FORM OF ADMINISTRATIVE SERVICES AND REIMBURSEMENT AGREEMENT

     This ADMINISTRATIVE SERVICES AND REIMBURSEMENT AGREEMENT (this "Agreement")
is dated as of August __, 2000, by and between BRE PROPERTIES, INC., a Maryland
corporation ("BRE"), and VELOCITYHSI, INC., a Delaware corporation
("VelocityHSI," and collectively with BRE, the "Parties").

                                R E C I T A L S
                                ---------------

     A.   Pursuant to a Contribution and Distribution Agreement dated as of
August __, 2000 (the "Contribution and Distribution Agreement"), BRE will
contribute (the "Contribution") to VelocityHSI the Contributed Assets (as
defined in the Contribution and Distribution Agreement).

     B.   In order to continue to operate the business of providing Internet
connectivity services, e-mail services, Web pages individualized for particular
communities, community-specific portals and related services (the "Business"),
VelocityHSI wishes to obtain from BRE, and BRE wishes to provide to VelocityHSI,
financial support and administrative services, such as use of office space;
management, accounting and payroll services; administration of benefits programs
and such other administrative services upon which VelocityHSI and BRE may agree
(collectively, the "Services") until the Termination Date (as defined herein).

     C.   A condition to the closing of the Contribution is that BRE and
VelocityHSI enter into this Agreement pursuant to which BRE shall provide
financial support and Services, the terms of which shall be effective (the
"Effective Date") immediately after the time BRE ceases to own 100% of the
outstanding capital stock of VelocityHSI.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereby agree as follows:

     1.   Definitions.  As used in this Agreement, the following terms shall
          -----------
have the meanings indicated below:

          "Advances" shall have the meaning set forth in Section 2 hereof.

          "Beneficial Ownership" shall have the meaning set forth in Section 3
     hereof.

          "Business" shall have the meaning set forth in the recitals to this
     Agreement.

          "BRE-Related Capital Expenditures" shall mean the cost of capital
     equipment and its installation installed or to be installed by VelocityHSI
     in multifamily dwelling units owned by BRE.

          "Change in Control of VelocityHSI" shall have the meaning set forth in
     Section 3 hereof.
<PAGE>

          "Contribution and Distribution Agreement" shall mean the agreement
     described in the Recitals to this Agreement.

          "Effective Date" shall mean effective the date of this Agreement as
     set forth in the Recitals to this Agreement.

          "Exchange Act" shall have the meaning set forth in Section 3 hereof.

          "Incumbent Board" shall have the meaning set forth in Section 3
     hereof.

          "Non-Control Acquisition" shall have the meaning set forth in Section
     3 hereof.

          "Non-Control Transaction" shall have the meaning set forth in Section
     3 hereof.

          "Parties" shall have the meaning set forth in the introductory
     paragraph hereof.

          "Person" shall have the meaning set forth in Section 3 hereof.

          "Proxy Contest" shall have the meaning set forth in Section 3 hereof.

          "Services" shall have the meaning set forth in the Recitals to this
     Agreement.

          "Subject Person" shall have the meaning set forth in Section 3 hereof.

          "Surviving Corporation" shall have the meaning set forth in Section 3
     hereof.

          "Termination Date" shall have the meaning set forth in Section 3
     hereof.

          "VelocityHSI and Third-Party Capital Expenditures" shall mean all
     capital expenditures incurred by VelocityHSI other than BRE-Related Capital
     Expenditures.

          "Voting Securities" shall have the meaning set forth in Section 3
     hereof.

     2.  Services and Advancement of Expenses.  From the Effective Date
         ------------------------------------
through the Termination Date, BRE shall provide the Services to VelocityHSI and
make advances (the "Advances") to VelocityHSI to fund operating expenses and
capital expenditures, subject to the limits set forth in Section 5 hereof, as
VelocityHSI may reasonably request from time to time in connection with the
operation of the Business.

     3.  Term; Termination.  This Agreement shall commence as of the Effective
         -----------------
Date and continue until the date this agreement is terminated (the "Termination
Date"), which shall be September 30, 2001 unless earlier terminated by
VelocityHSI for any reason upon not less than thirty (30) days prior written
notice or by BRE by written notice after a Change in Control of VelocityHSI (as
defined below in this Section 3). For purposes of this Agreement, "Change in
Control of VelocityHSI" shall mean any of the following events:

          (A)  An acquisition (other than directly from VelocityHSI) of any
               voting securities of VelocityHSI (the "Voting Securities") by any
               "Person" (as the term person is used for purposes of Section
               13(d) or 14(d) of the

                                       2
<PAGE>

               Securities Exchange Act of 1934, as amended (the "Exchange
               Act")), immediately after which such Person has "Beneficial
               Ownership" (within the meaning of Rule 13d-3 promulgated under
               the Exchange Act) of thirty percent (30%) or more of the combined
               voting power of VelocityHSI's then outstanding Voting Securities;
               provided, however, in determining whether a Change in Control has
               occurred, Voting Securities which are acquired in a Non-Control
               Acquisition shall not constitute an acquisition which would cause
               a Change in Control. A "Non-Control Acquisition" shall mean an
               acquisition by (i) an employee benefit plan (or a trust forming a
               part thereof) maintained by (A) VelocityHSI or (B) any
               corporation or other Person of which a majority of its voting
               power or its voting equity securities or equity interest is
               owned, directly or indirectly, by VelocityHSI (for purposes of
               this definition, a "Subsidiary"), (ii) VelocityHSI or its
               Subsidiaries, or (iii) any Person in connection with a "Non-
               Control Transaction" (as hereinafter defined);

          (B)  The individuals who, immediately after the Distribution are
               members of the Board of Directors of VelocityHSI (the "Incumbent
               Board"), cease for any reason to constitute at least two-thirds
               of the members of the Board of Directors of VelocityHSI;
               provided, however, that if the election, or nomination for
               election by VelocityHSI's common stockholders, of any new
               director was approved by a vote of at least two-thirds of the
               Incumbent Board, such new director shall, for purposes of this
               Agreement, be considered to be a member of the Incumbent Board;
               provided, further, however, that no individual shall be
               considered a member of the Incumbent Board if such individual
               initially assumed office as a result of either an actual or
               threatened election contest or other actual or threatened
               solicitation of proxies or consents by or on behalf of a Person
               other than the Board of Directors of VelocityHSI (a "Proxy
               Contest") including by reason of any agreement intended to avoid
               or settle any election contest or Proxy Contest; or

          (C)  Approval by the stockholders of VelocityHSI of:

               (i)   A merger, consolidation or reorganization involving
                     VelocityHSI, unless such merger, consolidation or
                     reorganization is a "Non-Control Transaction." A "Non-
                     Control Transaction" shall mean a merger, consolidation or
                     reorganization of VelocityHSI where:

                     (a)  the stockholders of VelocityHSI, immediately before
                          such merger, consolidation or reorganization, own
                          directly or indirectly immediately following such
                          merger, consolidation or reorganization, at least
                          seventy percent (70%) of the combined voting power of
                          the outstanding voting securities of the corporation
                          resulting from such merger or consolidation or
                          reorganization (the "Surviving

                                       3
<PAGE>

                          Corporation") in substantially the same proportion as
                          their ownership of the Voting Securities immediately
                          before such merger, consolidation or reorganization,

                     (b)  the individuals who were members of the Incumbent
                          Board immediately prior to the execution of the
                          agreement providing for such merger, consolidation or
                          reorganization constitute at least two-thirds of the
                          members of the board of directors of the Surviving
                          Corporation, or a corporation beneficially directly or
                          indirectly owning a majority of the Voting Securities
                          of the Surviving Corporation, and

                     (c)  no Person other than (i) VelocityHSI, (ii) any
                          Subsidiary, (iii) any employee benefit plan (or any
                          trust forming a part thereof) maintained by
                          VelocityHSI, the Surviving Corporation, or any
                          Subsidiary, or (iv) any Person who, immediately prior
                          to such merger, consolidation or reorganization had
                          Beneficial Ownership of thirty percent (30%) or more
                          of the then outstanding Voting Securities, has
                          Beneficial Ownership of thirty percent (30%) or more
                          of the combined voting power of the Surviving
                          Corporation's then outstanding Voting Securities.

               (ii)  A complete liquidation or dissolution of VelocityHSI; or

               (iii) An agreement for the sale or other disposition of all or
                     substantially all of the assets of VelocityHSI to any
                     Person (other than a transfer to a Subsidiary).

          (4)  Notwithstanding the foregoing, a Change in Control shall not be
               deemed to occur solely because any Person (the "Subject Person")
               acquired Beneficial Ownership of more than the permitted amount
               of the then outstanding Voting Securities as a result of the
               acquisition of Voting Securities by VelocityHSI which, by
               reducing the number of Voting Securities then outstanding,
               increases the proportional number of shares Beneficially Owned by
               the Subject Person, provided that if a Change in Control would
               occur (but for the operation of this sentence) as a result of the
               acquisition of Voting Securities by VelocityHSI, and after such
                                                                ---
               share acquisition by VelocityHSI, the Subject Person becomes the
               Beneficial Owner of any additional Voting Securities which
               increases the percentage of the then outstanding Voting
               Securities Beneficially Owned by the Subject Person, then a
               Change in Control shall occur.

     4.   Statements and Service Warranty
          -------------------------------

          4.1  Statement from BRE.  Promptly, and in any event not later than
               ------------------
     twenty days following the end of each month, BRE shall provide to
     VelocityHSI a statement setting

                                       4
<PAGE>

     forth the cost of all Services provided and Advances made to VelocityHSI,
     calculated as set forth in Section 6.1 hereof, itemized in the manner
     reasonably requested by VelocityHSI.

          4.2  Service Warranty.  BRE represents and warrants that the Services
               ----------------
     will be timely provided, in a commercially reasonable manner, consistent
     with BRE's past practices with regard to the Business. BRE agrees to
     indemnify and hold harmless VelocityHSI from all claims, costs and losses
     attributable to BRE's or BRE employees' negligent acts or omissions.

     5.   Limitation on Advances.  Notwithstanding anything to the contrary
          -----------------------
herein, BRE shall not be obligated to make Advances to fund operating expenses
(including expenses for Services rendered by BRE pursuant to this Agreement) and
VelocityHSI and Third Party Capital Expenditures in an aggregate amount in
excess of $10,000,000.  There shall be no limitation on the amount of Advances
BRE is obligated to make to VelocityHSI to fund BRE-Related Capital
Expenditures.

     6.   Reimbursement and Repayment by VelocityHSI.
          ------------------------------------------

          6.1  Payment.  Within five (5) business days of the Termination Date,
               -------
     VelocityHSI shall reimburse BRE for the aggregate unreimbursed cost of all
     Services rendered by BRE pursuant to this Agreement and shall repay the
     aggregate unpaid amount of all Advances, together with simple interest on
     the Advances from the date made to the date of repayment, at the rate of 9%
     per annum. Reimbursable costs for Services rendered by BRE will be computed
     based upon hourly rates assigned to the BRE employees providing the
     Services which reflect the employees' salary and benefit costs to BRE, plus
     35% of the hourly rate to cover indirect costs such as office space,
     equipment usage, supplies and utilities.

          6.2  Prepayment.  At any time during the term of this Agreement,
               ----------
     VelocityHSI may prepay any or all of the amounts described in Section 6.1
     hereof, without penalty or premium.

     7.   General.

          7.1  Relationship of Parties.  Nothing in this Agreement shall be
               -----------------------
     deemed or construed by the Parties or any third party as creating the
     relationship of principal and agent, partnership or joint venture between
     the Parties, it being understood and agreed that no provision contained
     herein, and no act of the Parties, shall be deemed to create any
     relationship between the Parties other than the relationship set forth
     herein.

          7.2  Successors and Assigns.  This Agreement shall inure to the
               ----------------------
     benefit of and be binding upon the Parties hereto and their respective
     successors and assigns. This Agreement shall not be assigned by either
     Party hereto without the express written consent of the other Party hereto;
     provided, however, that BRE may assign its rights and obligations under
     this Agreement, in whole or in part, to an affiliate without the consent of
     VelocityHSI.

                                       5
<PAGE>

          7.3  Titles and Headings.  Titles and headings of sections herein are
               -------------------
     inserted for the convenience of reference only and are not intended to be a
     part of or to affect the meaning or interpretation of this Agreement.

          7.4  Severability.  In the event that one or more of the terms or
               ------------
     provisions of this Agreement or the application thereof in any
     circumstance(s) shall, for any reason and to any extent be found by a court
     of competent jurisdiction to be invalid, illegal or unenforceable, such
     court shall have the power, and hereby is directed, to substitute for or
     limit such invalid term(s), provision(s) or application(s) and to enforce
     such substituted or limited terms or provisions, or the application
     thereof. Subject to the foregoing, the invalidity, illegality or
     enforceability of any one or more of the terms or provisions of this
     Agreement, as the same may be amended from time to time, shall not affect
     the validity, legality or enforceability of any other term or provision
     hereof.

          7.5  Notices.  Notices shall be sent to the Parties at the following
               -------
     addresses:

               BRE Properties, Inc.
               44 Montgomery Street, 36th Floor
               San Francisco, California 94104
               Attn:  LeRoy E. Carlson
               Facsimile:  415-445-6505

               VelocityHSI, Inc.
               2175 North California Boulevard, Suite 810
               Walnut Creek, California 94956
               Attn:  Charles P. Wingard
               Facsimile:  925-952-5697

          Notices may be hand-delivered or sent by certified mail, return
     receipt requested, Federal Express or comparable overnight delivery
     service, or facsimile.  Notice shall be deemed received at the time
     delivered by hand, on the fourth business day following deposit in the U.S.
     mail, on the first business day following deposit with Federal Express or
     other delivery service, or if given by facsimile when confirmation of
     transmission is indicated by the sender's facsimile machine.  Any Party to
     this Agreement may change its address for notice by giving written notice
     to the other Party at the address and in accordance with the procedures
     provided above.

          7.6  Further Action.  VelocityHSI and BRE each shall cooperate in
               --------------
     good faith and take such steps and execute such papers as may be reasonably
     requested by the other Party to implement the terms and provisions of this
     Agreement.

          7.7  Amendments; Waivers.  No termination, cancellation, modification,
               -------------------
     amendment, deletion, addition or other change in this Agreement, or any
     provision hereof, or waiver of any right or remedy herein provided, shall
     be effective for any purpose unless specifically set forth in a writing
     signed by the Party or Parties to be bound thereby. The waiver of any right
     or remedy with respect to any occurrence on one

                                       6
<PAGE>

     occasion shall not be deemed a waiver of such right or remedy with respect
     to such occurrence on any other occasion.

          7.8  Governing Law.  This Agreement and the rights and obligations of
               -------------
     the Parties hereunder shall be governed by the laws of the State of
     California, without regard to the principles of choice of law thereof.

          7.9  Entire Agreement.  Except with respect to the Contribution and
               ----------------
     Distribution Agreement (and the Ancillary Agreements referenced therein),
     this Agreement constitutes the entire agreement and supersedes all prior
     agreements, understandings, negotiations and discussions, whether written
     or oral, between the Parties hereto with respect to the subject matter
     hereof, so that no such external or separate agreement relating to the
     subject matter of this Agreement shall have any effect or be binding,
     unless the same is referred to specifically in this Agreement or is
     executed by the Parties after the date hereof.

          7.10 Dispute Resolution.  Any dispute arising under this Agreement
          ------------------
     shall be resolved by binding arbitration in the manner contemplated by
     Article 10 of the Contribution and Distribution Agreement, including the
     attorneys fees provisions referred to therein.

          7.11 Counterparts.  This Agreement may be executed in two or more
               ------------
     counterparts, each of which together shall be deemed to be an original and
     all of which together shall be deemed to constitute one and the same
     agreement.

          7.12 No Third Party Beneficiaries.  This Agreement is solely for the
               ----------------------------
     benefit of the Parties hereto and shall not be deemed to confer upon third
     parties any remedy, claim, liability, reimbursement, claim of action or
     other right in excess of those existing without this Agreement.

                                    *  *  *

                                       7
<PAGE>

     IN WITNESS WHEREOF, the Parties have duly executed this Administrative
Services and Reimbursement Agreement as of the date first written above.


                              BRE PROPERTIES, INC.


                              By:
                                  -------------------------------
                                  LeRoy E. Carlson
                                  Executive Vice President and Chief
                                  Operating Officer



                              VELOCITYHSI, INC.


                              By:
                                  -------------------------------
                                  Charles P. Wingard
                                  Senior Vice President,
                                  Chief Financial Officer and Secretary

                                       8