REQUEST FOR PROPOSAL Lender Financing for Permanent Debt. for. BOULDER HOUSING PARTNERS Vistoso Community, LLC

Transcription

1 REQUEST FOR PROPOSAL Lender Financing for Permanent Debt for BOULDER HOUSING PARTNERS Vistoso Community, LLC Dates: Issued: Written Clarifying Questions Due: Term Sheets Due: August 17, 2017 August 30, 2017 at 2:00 PM MT September 12, 2017 at 4:00 PM MT Boulder Housing Partners 4800 Broadway Boulder, CO (720)

2 Request for Financing Permanent Debt Contents A. Summary, Submittal Process and Deadlines 1. Summary 2. Submittal Process, Deadlines and Debt Response Request B. Additional Information 1. Property Description 2. Ownership Team 3. Rent and Income Strategy 4. Gap Financing Strategy 5. Environmental Report C. Evaluation 1. Evaluation Team 2. Evaluation Criteria D. BHP Reservation of Rights E. Attachments 1. Attachment A Vistoso Budget for Attachment B Final Audit Vistoso Community LLLP 3. Attachment C June 2017 YTD Income Statement Vistoso Community LLLP 4. Attachment D June 2017 Balance Sheet for Vistoso Community LLC 5. Attachment E Current Rent Roll Vistoso Community 6. Attachment F - Vistoso -Permanent Affordability Covenants (HOME and COB) 7. Attachment G - Schedule of Real Estate Holdings 8. Attachment H - June 2017 BHP Balance Sheet - Unaudited 9. Attachment I June YTD BHP Income Statement - Unaudited 2

3 A. Summary, Submittal Process and Deadlines 1. Summary The Housing Authority of the City of Boulder, Colorado, d/b/a Boulder Housing Partners (BHP), intends to procure a lending institution to lend permanent debt on our Vistoso Community property. Built in 2004, Vistoso consists of 15 twobedroom units in a 91-unit building. The remaining 76 units are privately owned. On June 30, 2017 Vistoso Community LLC, a wholly owned subsidiary of BHP, purchased the Limited Partner Interest in a Tax Credit partnership called Vistoso Community LLLP and became the 100% owner of the property. The units are in good condition and we anticipate spending approximately $200,000 on renovations in the next two to three years. These renovations would include items such as: new flooring, new countertops, new appliances, fresh paint and energy and water saving improvements. While we understand that the amount of the loan will be based upon an appraisal of the property, we are targeting $700,000 to allow for property reserves for these improvements. 2. Submittal Process, Deadlines and Debt Response Request BHP is seeking a first mortgage lending facility. Please specify the following in your proposal: 1. Term (Minimum 7 years. Longer options welcome) 2. Interest Rate 3. Amortization Period (longer is better) 4. Pre-payment penalties, if any (none is preferred) 5. Debt service coverage ratio requirements, if any 6. Loan to value limits 7. Required guarantees, if any 8. Required reserves, if any 9. Any other fees such as: loan origination fees, rate-lock fees 10. Closing cost estimates such as: costs of appraisal, title, survey, legal fees, etc. Requests for Clarification: Please submit all questions and requests for clarification and/or additional information by August 30, 2017 at 2:00 PM to Deanna Mayberry at mayberryd@boulderhousing.org. BHP will compile all questions and provide all responding parties a comprehensive list of all questions and answers no later than September 5, 2017 at 2:00 PM. Proposal Due Date: Please submit final proposals and term sheets no later than September 12, 2017 at 4:00 PM to mayberryd@boulderhousing.org. Only those 3

4 submittals received by the specified date and time will be considered. Any submittal received after the specified date and time will not be reviewed. Deanna Mayberry, Assistant Project Manager B. Additional Information C. Evaluation 1. Property Description Vistoso is part of a 91-unit condominium building in which BHP owns 15 units. Residents have access to several onsite amenities. The building is located adjacent to the Meadows on the Parkway Shopping Plaza, and a high frequency bus stop in front of the building. Vistoso Community, LLC pays dues to the Home Owners Association currently amounting to $3,228/ per unit/per year. 2. Relevant Property and Ownership Information All 15 units have affordability covenants that limit the income of residents to 40% of area median income (AMI) with a corresponding limit to the amount of rent that we are allowed to charge. There is a deed restriction on the property which goes with the land and cannot be removed from the title. In the event of a sale, the property would continue to have rents restricted at 40% AMI. While covenants can technically be moved, there would need to be a receiving site. For purposes of this loan, it should be assumed that the property cannot be turned into market-rate. BHP is a mission driven organization and therefore a long-term asset holder and does not intend on reselling the property or moving the covenants. There are no tax credits associated with this deal. 3. Ownership The 15-unit property is 100% owned by Vistoso Community, LLC which is a single member limited liability company wholly owned by Boulder Housing Partners. BHP is the Housing Authority for the City of Boulder, a quasi-governmental organization created in 1966 by the City Council of the City of Boulder. It was established as a housing authority under state law to provide safe and sanitary housing to low and moderate-income households in the City of Boulder. We own and manage approximately 1200 units of affordable housing in Boulder, making a strong contribution to City Council's goal that 10% of all housing is permanently affordable. Please refer to our website for additional information: 1. Evaluation Team The evaluation team, consisting of staff members appointed by BHP, will make recommendations to BHP management, and then to BHP s Board of Commissioners. The evaluation is based on the Respondent s proposal submitted in response to this solicitation. 4

5 2. Evaluation Criteria The criteria are listed below in descending order of importance with a total possible of 100 points. Loan terms: Rate, Term, Amortization, Maturity, Require Guarantees, Debt Service Coverage Ratio, and Loan to Value Origination Fees and Other Closing Costs Lender Experience with BHP 70 pts 15 pts 15 pts D. BHP Reservation of Rights 1. BHP reserves the right to reject any or all proposals, to waive any informality in the RFP process, or to terminate the RFP process at any time, if deemed by BHP to be in its best interests. 2. BHP reserves the right not to award a contract pursuant to this RFP. 3. BHP reserves the right to terminate a contract awarded pursuant to this RFP, at any time for its convenience upon 10 days written notice to the successful bidder. 4. BHP reserves the right to retain all proposals submitted and not permit withdrawal for a period of 60 days subsequent to the deadline for receiving proposals without the written consent of BHP Procurement Officer. 5. BHP reserves the right to negotiate the fees proposed by the bidder if applicable to bid process. 6. BHP reserves the right to reject and not consider any proposal that does not meet the requirements of this RFP, including but not limited to incomplete proposals and/or proposals offering alternate or non-requested services. 7. BHP shall have no obligation to compensate any bidder for any costs incurred in responding to this RFP. 8. BHP shall reserve the right to at any time during the RFP or contract process to prohibit any further participation by a bidder or reject any proposal submitted that does not conform to any of the requirements detailed herein. 9. BHP reserves the right to discontinue the RFP process at any point in time. 10. Proposals are subject to public review via open records requests. Once the award of the project has been made, proposals may also be shared with non-successful respondents. 5