REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING RFP #

Transcription

1 REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING RFP # CITY OF SANTA ANA Community Development Agency 20 Civic Center Plaza Santa Ana, CA Natalie Verlinich Housing Programs Analyst (714) Office NVerlinich@santa-ana.org KEY RFP DATES: Issue Date: Wednesday, February 3, 2016 Deadline to Submit Questions: Friday, March 4, 2016 at 5:00 p.m. Response Posted on City Website: Friday, March 11, 2016 at 5:00 p.m. Proposal Due Date: Monday, March 28, 2016 at 12:00 p.m. Tentative Community Redevelopment and Housing Wednesday, April 27, 2016 at 4:30 p.m. Commission Recommendation Tentative City Council Approval Tuesday, May 17, 2016 at 5:45 p.m.

2 NOTICE INVITING PROPOSALS NOTICE IS HEREBY GIVEN that proposals will be received from qualified firms for development of affordable housing projects. Responses to this Request for Proposals will be accepted until Monday, March 28, 2016 at 12:00 p.m. The City may only accept proposals for the Acquisition and Rehabilitation of Existing Residential Rental Projects. Any additional financing for a project must be secured prior to July 31, 2016 in order to be eligible for an award of funds. If further information is required regarding this Request for Proposals, please contact Ms. Natalie Verlinich, Housing Programs Analyst at (714) or NVerlinich@santa-ana.org. MAILED, DELIVERED BY HAND, OR COURIERED proposals will be accepted as follows: City of Santa Ana Natalie Verlinich, Housing Programs Analyst Community Development Agency 20 Civic Center Plaza, Sixth Floor Santa Ana, CA It is the responsibility of the proposer to ensure that any proposals submitted shall have sufficient time to be received by the City of Santa Ana prior to the proposal due date and time. Questions regarding the Request for Proposals shall be made in writing via to Natalie Verlinich at NVerlinich@santa-ana.org. The time the proposal is received in the Community Development Agency, 20 Civic Center Plaza, 6 th Floor, Santa Ana, CA will be the governing time for acceptance of proposals. Late proposals will not be considered and will be returned to the proposer unopened. Telegraphic, electronic, and facsimile proposals will not be accepted. DO NOT RFP RESPONSES. DO NOT FAX RFP RESPONSES. Page 2

3 CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING (RFP) PAGE I. INTRODUCTION 4 II. SCOPE OF WORK/SERVICES 4 III. GENERAL INFORMATION 4 IV. COORDINATION 5 V. DEVELOPER RESPONSIBILITIES 5 VI. CITY BUSINESS LICENSE 5 VII. RULES FOR PROPOSALS 5 VIII. PRE-PROPOSAL MEETING 6 IX. COMMUNICATIONS AND INTERPRETATIONS/CLARIFICATIONS 6 X. ADDENDA 6 XI. SUBMITTAL REQUIREMENTS INFORMATION AND DEADLINE 6 XII. MINIMUM QUALIFICATIONS 6 XIII. SUBMITTAL REQUIREMENTS 6 XIV. DEVELOPER SELECTION PROPOSAL AND EVALUATION 9 XV. PUBLIC RECORDS 9 XVI. FILING A PROTEST 9 EXHIBIT A SCOPE OF SERVICES 11 Attachment 1 Cornerstone Village Project Area 21 Attachment 2 Townsend-Raitt Project Area 22 Attachment 3 Cedar-Evergreen 23 Attachment Block of W. Myrtle Street 24 Attachment 5 Early Outreach Community Meeting 25 Attachment 6 Rehabilitation Standards 26 EXHIBIT B ADDITIONAL INSURED ENDORSEMENT FOR GENERAL LIABILITY POLICY 34 EXHIBIT C PROPOSER S STATEMENT: PROPOSAL AND CONTRACT AGREEMENT 35 EXHIBIT D PROPOSAL CONTRACT AND AGREEMENT CERTIFICATION OF NONDISCRIMINATION 36 EXHIBIT E NON-COLLUSION AFFIDAVIT 38 Page 3

4 CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING (RFP) I. INTRODUCTION The City of Santa Ana is soliciting proposals for the development of affordable housing projects from developers who are experienced, very knowledgeable of HUD programs and its requirements, financially creative and capable of developing, managing and maintaining high quality affordable housing. The City may only accept proposals for the Acquisition and Rehabilitation of Existing Residential Rental Projects. Any additional financing for a project must be secured prior to July 31, 2016 in order to be eligible for an award of funds. The maximum funding available will be as follows: - $1,199,869 in HOME Program funds that must be committed by July 31, $161,007 in HOME Programs funds for Community Housing Development Organizations (CHDO) only - 50 Project-Based Vouchers from the Housing Authority of the City of Santa Ana for homeless individuals or families The financial data provided in this RFP is not guaranteed, and the availability of such funds is subject to change at any time. The City of Santa Ana makes no guarantee of the availability of funding for any particular applicant or project. The availability of 50 project-based vouchers is contingent upon proposals awarded under RFP # for 100 units of Permanent Supportive Housing. The Housing Authority also understands that a project where 100% of the units designated for homeless individuals or families could be one of many ways to serve the most vulnerable members of our community. As a result, the Housing Authority is willing to consider proposals for project-based vouchers wherein at least 50% of the project-based units are for homeless individuals or families and the remaining project-based units may be for individuals or families earning less than 30% Area Median Income. The submission of a proposal in response to this RFP does not commit the City to providing any funding to a proposed project. The City reserves the right to determine at its sole discretion how to disburse available funds, if at all. II. SCOPE OF WORK/SERVICES The Scope of Work will include any and all work efforts related to the Affordable Housing Project per EXHIBIT A - SCOPE OF SERVICES. The Developer shall be an independent developer capable of providing experienced, knowledgeable and professional staff. The Developer shall be responsive and maintain excellent working relationships with city residents, businesses, government officials and City staff. The Developer shall provide adequate staffing levels at all times and adhere to established schedules. The Developer shall be knowledgeable of and comply with federal, state and local laws, including the Santa Ana Municipal Code and the federal HOME Investment Partnership Act Program as it applies to their proposal. Page 4

5 III. GENERAL INFORMATION A. The term of any agreement will begin after the contract is awarded by the City Council. B. When determined appropriate, the City will provide information in its possession relevant to preparation of required information in the RFP. The City will provide only the staff assistance and documentation specifically referred to herein. C. The Developer shall be responsible for retaining data, records and documentation for the preparation of the required information. These materials shall be made available to the City as requested by the City. D. This RFP does not commit the City to pay costs incurred in preparation of a response to this RFP. All costs incurred in the preparation of the proposal, the submission of additional information and/or any aspect of a proposal prior to award of a written contract will be borne by the respondent. The City reserves the right to accept or reject the combined or separate components of this proposal in part or in its entirety or to waive any informality or technical defect in a proposal. E. All data, documents and other products used, developed or produced during response preparation of the RFP will become property of the City. All responses to the RFP shall become property of the City. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act. F. The City reserves the right to reject, replace and approve any and all subcontractors. All subcontractor(s) shall be identified in the response to the RFP and the City reserves the right to reject any subcontractor(s). Subcontractors shall be the responsibility of the Developer and the City shall assume no liability of such subcontractors. IV. COORDINATION Coordination by the awarded Developer with the City, other contractors and agencies will be required to achieve satisfactory and timely delivery of the required services. Coordination may include, but not be limited to, coordination with impacted businesses, neighborhood and civic groups, local and/or state agency boards, and attendance at Community Redevelopment and Housing Commission meetings and City Council meetings. The City will decide the manner in which the coordination efforts will be conducted. At the City s option, coordination efforts may be performed by the Developer s direct contact, by the Developer acting through the City or by the City only. When coordination efforts require agreements, such agreements shall be coordinated through the City. V. DEVELOPER RESPONSIBILITIES The selected Developer will assume responsibility for all aspects of the development, and for insuring that the project is developed and operated in accordance with applicable federal and state laws, HOME regulations and Project-Based Voucher regulations. The selected Developer will ensure that the project is developed and operated in accordance with the City of Santa Ana laws, regulations, and the planning and development process. VI. CITY BUSINESS LICENSE The selected proposer shall be required to obtain a City of Santa Ana Business license within 30-days of selection and must provide a copy to the City project manager or designee prior to commencing any work in Santa Ana. Page 5

6 VII. RULES FOR PROPOSALS The signer of the RFP must declare in writing that the only person, persons, company or parties interested in the proposal as principals are named therein; that the proposal is made without collusion with any other person, persons, company or parties submitting a proposal; that it is in all respects fair and in good faith without collusion or fraud; and, that the signer of the proposal has full authority to bind the proposer (Exhibit E). VIII. PRE-PROPOSAL MEETING The City will not have a pre-proposal meeting for this RFP. IX. COMMUNICATIONS AND INTERPRETATIONS/CLARIFICATIONS To facilitate the RFP process, proposers are required to monitor and respond to requests within 48 hours. No oral interpretations will be made by the City to any proposer as to the meaning of requirements identified herein including the Scope of Service. Every request for such an interpretation must be made in writing via e- mail to Natalie Verlinich, Housing Programs Analyst, at nverlinich@santa-ana.org no later than Friday, March 4, 2016 at 5:00 p.m. Significant interpretations or clarification will be made by an addendum to this RFP, which will be posted to the website. Addenda may become part of the agreement documents. X. ADDENDA If clarification or interpretation of this RFP is considered necessary by the City, a written addendum shall be issued and the information will be posted on the City s website at and the Housing Authority s website. It is the responsibility of each proposer to periodically check the City s website to ensure that they have received and reviewed any and all addenda to this RFP. XI. SUBMITTAL REQUIREMENTS INFORMATION AND DEADLINE Proposals are due to the City of Santa Ana, at the date, time and location set forth on the Notice inviting proposals. Faxed and ed proposals will not be accepted. XII. MINIMUM QUALIFICATIONS Proposers shall have a minimum of five (5) years recent experience in the development and operation of affordable housing projects similar to their proposed project. XIII. SUBMITTAL REQUIREMENTS Proposers shall submit five complete hard copies of their proposal, and one additional copy on a compact disc, USB flash drive or equivalent. All five copies of the proposal must include a signed cover letter. This cover letter must include a declaration that the only person, persons, company, or parties interested in the proposal as principals are named herein; that the proposal is made without collusion with any other person, persons, company, or parties submitting a proposal; that it is in all respects fair and in good faith without collusion or fraud, and that the signer has full authority to bind the proposer. It must also include an address and contact information for the signer. All proposals submissions shall be on 8-1/2 x 11 white paper. Page 6

7 Statement of Qualifications (SOQ). The SOQ must include the following components: 1. Developer Team. An organizational chart showing lines of responsibility, as well as a list of team members and their duties as part of the team. If the developer is a nonprofit corporation, or if a nonprofit is one of the team members, the SOQ must include documentation that the corporation is certified by the U.S. Internal Revenue Service as a 501(c)3 tax exempt non-profit corporation, and is in good standing with both state and federal compliance. Nonprofits who wish to be considered for funding under the Community Housing Development Organization (CHDO) component of the HOME Program must complete and include a CHDO checklist, as well as the required supporting documentation. The CHDO checklist is available on HUD s website here: A CHDO certification from another jurisdiction is not acceptable. They must also describe their ability to comply with the new HUD requirements for CHDOs. Developer needs to identify if any contractor(s) and/or subcontractor(s) are a subsidiary to any member of the development team. 2. Developer Experience. A narrative describing recent affordable residential development and management experience, with an emphasis on experience gained in the last five years on projects similar to the one being proposed. a. Include project name and type (special needs, senior, large family, etc.), project address, developer team members, unit count and bedroom type, affordability requirements, and funding sources in your description. b. Include a description of how neighborhood input was solicited and utilized in the development of these projects. 3. Service Provider Experience. (Only if applying for Project-Based Vouchers in partnership with a Service Provider) A narrative describing recent experience, with an emphasis on experience gained in the last five years on projects similar to the one being proposed. a. Include project name and type (homeless, special needs, senior, large family, etc.), project address, unit count and bedroom type, affordability requirements, and funding sources in your description. b. Include a description of current involvement with the Orange County Continuum of Care and the Orange County Coordinated Entry system. (If from another county, may use that jurisdiction s CoC.) 4. Financial Capacity. Description of financial strength and ability to obtain project financing before July 30, 2016, and to provide sufficient equity for the successful completion of the proposed project. a. Include a description of current relationships with major lending institutions. b. The developer which is selected for recommendation to City Council, or if a partnership, the team members who will retain an ownership interest in the project, will be required to submit complete financial statements for the last three years. Because of the possibility of public records requests, the City cannot guarantee that these statements will remain confidential. 5. References. Include a list of at least three references from public agency partners and professional lenders and investors with full names, contact information, and identification of the project(s) worked on. SOQs must be limited to a maximum of 25 pages, excluding front and back covers, section dividers, and exhibits. Page 7

8 All project proposals must contain the following minimum submission requirements: 1. Project Description. Detailed and concise narrative describing the proposed project, including at a minimum and as appropriate the rehabilitation concept for the site or a description (with photographs) of the building to be acquired, proposed building square footage, number of units/bedrooms, total parking spaces, proposed ingress and egress, proposed rents and tenant incomes, any special needs groups to be served, amenities to be provided to the tenants, and resident manager s unit. If there will not be a resident manager for a rental project, describe in detail how the project will be managed. For all projects, the narrative must also address site control, current zoning and any required zoning changes, anticipated development costs, City funds required and required City loan terms, developer access to additional funds required by the project, and proof that the property is under contract. This narrative should be accompanied by a site map showing the project s location. 2. Development Pro Forma. A detailed development pro forma that identifies the sources and uses of all funds necessary to complete the project, and that includes the project s anticipated cash flows over a period of years equal to 15 years and 30 years. The pro forma should identify important underlying assumptions that govern the cash flows, including but not necessarily limited to the amounts and frequency of loan repayments (all sources), annual rent increases, occupancy levels, operating costs as a percent of revenue, timing and amounts of replacement costs. The developer should indicate whether the cost estimates in the Sources and Uses budget assume the payment of Davis-Bacon wages and relocation benefits, if applicable. The pro forma must include a calculation of the return on investment to the developer. This will enable the City to comply with the new HUD requirement that it evaluate the reasonableness of the level of profit or return on owner s or developer s investment in a project. To date, HUD has provided no further guidance on this required evaluation. 3. Projected Rental Income. Include evidence that the rental income shown in the pro forma is reasonable and achievable. If proposing all rents to be for low-income households, please include a market study. 4. Section 3 and Section 504 Compliance. Describe the steps to be taken to comply with the federal requirement for maximum feasible participation of local low income residents and businesses in the development of federally funded projects. Describe how the project will be developed and operated so as to insure compliance with all relevant components of the Americans with Disabilities Act. 5. Proposed Development Schedule. Taking as a starting point City Council approval of the proposed City loan, provide a proposed development schedule that includes the following milestones at a minimum: site acquisition, additional required loan commitments and funding from all other funding sources, zoning change approvals if necessary, preparation and approval of construction plans, start of construction, completion of construction, and lease-up. The schedule must reflect the fact that under the new HOME Program regulations the City cannot commit HOME funds to the project until it has completed its own underwriting, until the developer has obtained commitments for all additional required funds, and until the City and the developer have signed a loan agreement. 6. Current Tenants. Provide a listing of all tenants currently residing in the units, if applicable. 7. Exhibit B Proposer s Statement 8. Exhibit C Certification of Nondiscrimination 9. Exhibit D Non-Collusion Affidavit Page 8

9 The proposal must be completely responsive to the RFP. Incomplete proposals will be deemed as nonresponsive and will be rejected. The City reserves the right to reject any or all proposals submitted and no representation is made hereby that any contract will be awarded pursuant to this RFP or otherwise. XIV. DEVELOPER SELECTION PROPOSAL AND EVALUATION Immediately following the submission deadline, the Community Development Agency will create a review panel composed of City staff from relevant City departments. Each member of this panel will evaluate and rank each proposal using the evaluation criteria listed below: 1. Demonstrated ability of the developer team to develop. Capacity to obtain such additional funding as may be necessary, to obtain the necessary entitlements, to successfully manage and complete the construction process as quickly as possible. Capacity to commit HOME funds prior to July 31, 2016, which means having all other financing in place prior to the commitment of HOME funds. (20 percent) 2. Demonstrated ability to manage affordable rental units so as to insure both ongoing compliance with affordability requirements and long term financial solvency. (15 percent) 3. Demonstrated readiness of the proposed project to proceed. Demonstrated site control and availability of financing. Appropriate zoning. Alignment with the City s Housing Element and Strategic Plan. (30 percent) 4. Proposed levels of affordability. (15 percent) 5. Extent to which City funds will be leveraged by outside funds as shown by sources and uses budget. (10 percent) 6. Anticipated cash flows as shown by the pro forma. (5 percent) 7. CHDO status (5 percent) 8. Capacity, ability and extent of effort to provide housing for homeless individuals and families. (10 percent bonus) Once the panel has completed its review of the submitted material it will invite the top rated proposers to an interview with the panel. XV. PUBLIC RECORDS Proposals will become public record after award of agreement. Interested offerors may submit a written request, with a self-addressed stamped envelope to receive results of the evaluation. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act. Submit your request to,, Attn: Natalie Verlinich, Housing Programs Analyst, 20 Civic Center Plaza M-26, Santa Ana, CA Page 9

10 CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING EXHIBIT A SCOPE OF SERVICES I. INTRODUCTION The City of Santa Ana is soliciting proposals for the development of affordable housing projects from developers who are experienced, very knowledgeable of HUD programs and its requirements, financially creative and capable of developing, managing and maintaining high quality affordable housing. The City may only accept proposals for the Acquisition and Rehabilitation of Existing Residential Rental Projects. Any additional financing for a project must be secured prior to July 31, 2016 in order to be eligible for an award of funds. The maximum funding available will be as follows: - $1,199,869 in HOME Program funds that must be committed by July 31, $161,007 in HOME Programs funds for Community Housing Development Organizations (CHDO) only - 50 Project-Based Vouchers from the Housing Authority of the City of Santa Ana for homeless individuals or families The financial data provided in this RFP is not guaranteed, and the availability of such funds is subject to change at any time. The City of Santa Ana makes no guarantee of the availability of funding for any particular applicant or project. The availability of 50 project-based vouchers is contingent upon proposals awarded under RFP # for 100 units of Permanent Supportive Housing. The Housing Authority also understands that a project where 100% of the units designated for homeless individuals or families could be one of many ways to serve the most vulnerable members of our community. As a result, the Housing Authority is willing to consider proposals for project-based vouchers wherein at least 50% of the project-based units are for homeless individuals or families and the remaining project-based units may be for individuals or families earning less than 30% Area Median Income. The submission of a proposal in response to this RFP does not commit the City to providing any funding to a proposed project. The City reserves the right to determine at its sole discretion how to disburse available funds, if at all. The selected developer will also have a demonstrated history of working cooperatively with surrounding neighborhoods in all phases of project development. Both nonprofit and for profit developers are eligible to apply, either individually or in partnership with other entities. Due to HUD s commitment deadlines for the City s funds, it is imperative that applicants be able to demonstrate site control for the existing property they propose to acquire and rehabilitate. HUD policy generally discourages the use of federal grant funds as the only financing source for housing projects. As a consequence, developers who can demonstrate the capability to make non-federal funds a significant part of the financing mix for their proposed project will score higher in the selection process than those who cannot. II. HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) FUNDING The City of Santa Ana (City) has adopted a Consolidated Five Year Plan (Plan) that governs its expenditure of formula grant funds received from the U.S. Department of Housing and Urban Development (HUD). The Plan identifies the development of affordable rental housing and homeownership as a high priority. It further stipulates that HOME Investment Partnership Act funds (HOME) may appropriately be used to meet these goals. A. DEVELOPMENT SITE PREFERENCES The City is not making any parcels it owns available for development through this RFP, and it will entertain proposals for suitable properties located anywhere in the City. However, the City prefers to maximize the positive impact of its limited federal housing development funds by concentrating their expenditure in targeted Page 10

11 areas of the City. The City has identified five geographical areas where it has targeted significant public resources in the past, and where it would like to see additional resources targeted in the future. The four areas are known as follows: Cornerstone Village (Attachment 1), Townsend-Raitt (Attachment 2), Cedar-Evergreen (Attachment 3), and Myrtle Street (Attachment 4). Additional target areas are identified in the City s Housing Element. Both the Plan and the City s Housing Element identify affordable rental housing suitable for larger households as a high priority for the City. One of the rating criteria is the bedroom size of the proposed units. Project design and construction will be subject to and carried out in accordance with established City standards and procedures. In accordance with the City s Early Outreach policy (Attachment 5), the selected developer may be required to solicit significant neighborhood input during the design process. B. AVAILABLE FUNDS The financial data provided in this RFP is not guaranteed, and the availability of such funds is subject to change at any time. The City of Santa Ana makes no guarantee of the availability of funding for any particular applicant or project. [Please Note: the availability of up to 50 project-based vouchers is contingent upon proposals awarded under RFP # for 100 units of Permanent Supportive Housing.] The submission of a proposal in response to this RFP does not commit the City to providing any funding to a proposed project. The City reserves the right to determine at its sole discretion how to disburse available funds, if at all. In order for HOME funds to be committed, all other financing must be place, including Low-Income Housing Tax Credits. The City will provide a pre-commitment letter to those projects successful in receiving allocations through this RFP. HOME Program expenditures are limited to an amount equal to the maximum subsidy limit established by HUD for units based on bedroom size times the number of such units. The maximum subsidy limits are as follows: # of Bedrooms HOME Maximum Subsidy 0 $128,000 1 $148,000 2 $180,000 3 $235, $255,000 Only HOME assisted units count toward the calculation of the HOME Program funds that may be invested in a project. HOME assisted units are deed restricted to rents and incomes eligible under the HOME Program. C. TERM OF AFFORDABILITY AND MAXIMUM ALLOWABLE RENTS The selected developer shall enter into a Loan Agreement with the City of Santa. This Agreement and other attendant documents shall provide for repayment of the loan. They shall also impose affordability covenants of no less than fifteen (15) years for acquisition/rehabilitation projects or until the City loan is repaid whichever is longer. HOME funded units must, at a minimum be affordable to very low and low income households. Page 11

12 As of the date of this RFP allowable rents are as follows: # of Bedrooms Maximum 30% Rent (2015 TCAC Limits) Maximum 50% Rent (Very Low / 2015 Low HOME Rent) Maximum 65% Rent (Low / 2015 High HOME Rent) 0 $492 $843 $1,076 1 $527 $903 $1,154 2 $633 $1,083 $1,387 3 $730 $1,252 $1,594 4 $815 $1,397 $1,759 Allowable rents must be reduced by a utility allowance for tenant paid utilities. HUD now requires that utility allowances be calculated for each project, and recommends using the model found at the following location: D. LOAN TERMS City assistance will be offered in the form of a long term loan secured by a promissory note and a deed of trust recorded against the property. If necessary, this loan may be subordinated to loans from other lenders. The loan will carry a 3 percent interest rate payable through residual receipts over a period of fifty-five (55) years. At the close of each fiscal year and as part of a required annual audit, the developer will calculate the amount of residual receipts, and make an annual payment to the City in an amount equal to 50 percent of the residual receipts. E. DISCLOSURES HUD has recently adopted significant changes to the rules governing the HOME Program. The full implications of these changes are not yet clear. The new rule can be accessed at: home/ All documents submitted to the City in response to the requirements of this RFP are subject to public records requests. This includes Financial Statements, pro formas and other information submitted in response to the new HUD requirement that the City review and evaluate the reasonableness of the return on the developer s investment in the project. The City cannot guarantee that these records will be kept confidential. The City will require developers to enforce the federal occupancy standard of two persons per bedroom plus one. The City utilizes rent and income tables developed by HUD, and for 30 percent of median rents, tables developed by the California Tax Credit Allocation Committee. Allowable rents and incomes may remain unchanged or may go down from one year to the next. Attainable rents may be significantly less than allowable rents. The City anticipates that HUD may release new rent and income tables for the HOME Program at some time during the next several months. Both may be lower than the current tables. The City utilizes an Information Bulletin released annually by HUD to determine the maximum per unit HOME subsidy limits. The last such Bulletin was released May 31, 2012 with an effective date of January 1, When released, the new bulletin may increase or decrease the HOME subsidy limits applicable to this RFP. Page 12

13 Projects with more than 11 (11) HOME Assisted or 8 Project-Based Voucher units are subject to Davis-Bacon wage requirements. HUD regulations prohibit the use of federal funds to pay relocation costs for tenants without a legal right to reside in the United States. State law requires that they be paid for those costs. Consequently the City will require that they be paid out of a nonfederal funding source. For acquisition/rehabilitation projects the City will require that the developer hire a professional relocation firm to develop and implement a relocation plan. The selected firm must be acceptable to the City. Unless it will be rent and income restricted, HOME funds cannot be used to pay for the development of a resident manager s unit. Under the newly revised HOME Program final rule, the City may not enter into a written agreement that commits HOME funds until all other required funding has been secured by means of a firm commitment, a budget and production schedule has been established, and underwriting completed. In order to facilitate this process, the City will require the selected developer to provide evidence of firm commitment for any additional funds required by the project within 30 days of the selection of their proposal. If the selected developer cannot provide the financing commitments, their proposal will be denied. The City must commit these HOME funds by July 31, As a consequence it is imperative that proposed projects be ready to move forward and additional required funding be readily available. Proposed development schedules must reflect this deadline. Under the newly revised HOME Program final rule, nonprofits wishing to be certified as CHDOs must have paid staff whose experience qualifies them to undertake CHDO activities. To act as a developer, a CHDO must be in sole charge of all aspects of the development process, including design, financing and construction. CHDO rental projects developed by a CHDO must be owned by the CHDO. Two other CHDO roles and their requirements ( owner and sponsor ) are described in Section of the revised rule which is available on HUD s website. Nonprofits seeking HOME funding as CHDOs must identify which of these three roles they will play, and how they meet HUD s requirements. The newly revised HOME Program final rule includes several mandated progress-related deadlines that will be incorporated into the developer s loan agreement, and that must be incorporated into the project s proposed timeline: o o o Construction must be underway within a year of the commitment of HOME funds HOME assisted rental units must be occupied by income-eligible tenants within 18 months of project completion. HOME projects must be completed within four years of the commitment of HOME funds Page 13

14 III. PROJECT BASED VOUCHERS The Housing Authority of the City of Santa Ana (SAHA) is soliciting applications from developers who are planning to acquire and rehabilitate existing rental housing within the jurisdictional boundaries of the City of Santa Ana, and who wish to secure Project Based Vouchers (PBVs) for their project to serve homeless individuals and families. Applications may be submitted by individuals, firms, or partnerships that individually or collectively have the knowledge, resources and experience necessary to develop and operate rental housing in accordance with the requirements of a HAP Contract. Projects which have already begun construction are not eligible for consideration. Depending upon the quality of submittals, SAHA may choose to enter into a PBV Agreement with one or more of the respondents, or with none of the respondents. The proposed Agreement to Enter into a HAP Contract (AHAP) will commit SAHA to making project based vouchers available for the selected project. The total number of vouchers available for commitment is 50. Continued availability of the vouchers will depend upon the developer s continued compliance with the requirements of the contract, and the continued availability to SAHA of sufficient numbers of vouchers to meet all such contractual obligations. Background and Objectives Public Housing Authorities (PHAs) can use up to 20 percent of their housing choice vouchers for PBVs. While PBVs reduce tenant mobility, they insure the availability of rental units at participating projects through the term of the contract, and so help a PHA to meet its basic objective of assisting its clients to obtain decent, safe and affordable rental housing. As a result, the Santa Ana Housing Authority (SAHA) Administrative Plan provides for the operation of a PBV Program utilizing up to 20 percent of its budget authority for that purpose. The Administrative Plan is available on the City s website at: Owners submitting responses to this RFP should be fully conversant with Chapter 17 of the Administrative Plan which details SAHA s PBV Program. In the event of any discrepancy between the Plan and the contents of this RFP, the Plan will prevail. Solicitation and Selection of PBV Proposals The Administrative Plan requires that SAHA must decide what housing type, new construction, rehabilitation or existing housing, will be used to develop project-based housing. SAHA has determined that rehabilitated rental housing is most appropriate, and is soliciting proposals for such projects. The Plan provides for two methods by which SAHA may solicit and select owners proposing to provide affordable rental housing to receive a PBV HAP Contract: 1. SAHA request for PBV Applications. SAHA may solicit applications by using a request for proposals process to select applications on a competitive basis. SAHA may not limit applications to a single site or impose restrictions that explicitly or practically preclude owner submission of proposals for PBV housing on different sites. 2. SAHA may select applications that were previously selected based on a different competition. This may include selection of a proposal for housing assisted under a federal, state, or local government housing assistance program that was subject to a competition in accordance with the requirements of the applicable program. This Request for Proposals (RFP) is issued in accordance with the first of these two methods. Applications may be submitted for qualified projects within the City of Santa Ana. All complete proposals received by the submission deadline will be rated and ranked by a review panel composed of SAHA and City of Santa Ana staff members. Page 14

15 As stipulated in the Administrative Plan, the review panel will use the following criteria but will not be limited to these criteria in their evaluation: Experience as an owner in the tenant-based voucher program and owner compliance with the owner s obligations under the tenant-based program; Extent to which the project furthers SAHA s goal of de-concentrating poverty and expanding housing and economic opportunities; If applicable, extent to which services for special populations are provided on site or in the immediate area for occupants of the property; and Extent to which units are occupied by families that are eligible to participate in the PBV program. Site Selection Standards It is SAHA s goal to select sites for PBV housing that provide for deconcentrating poverty and expanding housing and economic opportunities. In complying with this goal SAHA will limit approval of sites for PBV housing in census tracts that have poverty concentrations of 20 percent or less. However, SAHA will grant exceptions to the 20 percent standard where SAHA determines that the PBV assistance will complement other local redevelopment activities designed to deconcentrate poverty and expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent, such as sites in: A census tract in which the proposed PBV development will be located in a HUD-designated Enterprise Zone, Economic Community, or Renewal Community; A census tract in which the proposed PBV development will be located is undergoing significant revitalization as a result of state, local, or federal dollars invested in the area; A census tract where new market rate units are being developed where such market rate units will positively impact the poverty rate in the area; A census tract where there has been an overall decline in the poverty rate within the past five years; or A census tract where there are meaningful opportunities for educational and economic advancement. Existing and Rehabilitated Housing Site and Neighborhood Standards SAHA may not enter into an agreement to enter into a HAP Contract nor enter into a HAP Contract for rehabilitated housing until it has determined that the site complies with the HUD required site and neighborhood standards. The site must: Be adequate in size, exposure, and contour to accommodate the number and type of units proposed; Have adequate utilities and streets available to service the site; Promote a greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; Be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units; and Be located so that travel time and cost via public transportation or private automobile from the neighborhood to places of employment is not excessive. Subsidy Layering Analysis Requirement Under the federal regulations, SAHA cannot enter into a PBV HAP Contract or AHAP Contract for new construction or rehabilitation projects until a subsidy layering analysis has been completed. Under current HUD procedures, this analysis will be prepared by the California Tax Credit Allocation Committee (TCAC) for projects selected to receive a tax credit reservation. For projects that SAHA has approved to receive PBVs but will not receive tax credits, SAHA will Page 15

16 submit a request to HUD to perform the analysis. The purpose of this analysis is to insure that housing projects receiving assistance from HUD do not receive excessive compensation by combining various forms of HUD program assistance with assistance from other federal, state, or local agencies. Supportive Services One of the most important elements of providing housing for the homeless is ongoing supportive services that are wrapped around homeless individuals and families placed in housing. Under this RFP, the Scope of Services required for in the course of operating the Project-Based Voucher Program for homeless individuals and families will include, but not be limited to: 1. Performing intake of homeless individuals and families for participation in the Program; 2. Accepting referrals of homeless individuals and families from the Orange County Continuum of Care Coordinated Entry System or a homeless service provider approved by SAHA; 3. Placing homeless individuals and families into project-based housing units; Housing First Housing First is an approach that offers permanent, affordable housing as quickly as possible for individuals and families experiencing homelessness, and then provides the supportive services and connections to the community-based supports people need to keep their housing and avoid returning to homelessness. Housing provides a foundation from which a person or family can access the services and supports they need to achieve stability, begin the recovery process, and pursue personal goals. Housing First programs share critical elements: There is a focus on helping individuals and families access and sustain rental housing as quickly as possible and the housing is not time-limited; A variety of services are delivered primarily following a housing placement to promote housing stability and individual well-being; Such services are time-limited or long-term depending upon individual need; and Housing is not contingent on compliance with services instead, participants must comply with a standard lease agreement and are provided with the services and supports that are necessary to help them do so successfully. A Housing First approach rests on the belief that helping people access and sustain permanent, affordable housing should be the central goal of our work with people experiencing homelessness. By providing housing assistance, case management and supportive services responsive to individual or family needs (time-limited or long-term) after an individual or family is housed, communities can significantly reduce the time people experience homelessness and prevent further episodes of homelessness. A central tenet of the Housing First approach is that social services to enhance individual and family well-being can be more effective when people are in their own home. The Housing First approach is strongly recommended for receiving and providing housing for referrals from the Orange County Continuum of Care Coordinated Entry System or a homeless service provider. Page 16

17 IV. DEVELOPER REQUIREMENTS AND RESPONSIBILITIES i. INSURANCE Prior to undertaking performance of work under this Agreement, Developer shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: 1. Commercial General Liability Insurance. Developer shall maintain commercial general liability insurance which shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting there from and damage to property, resulting from any act or occurrence arising out of Developer s operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting there from, and property damage, in the total amount of $2,000,000 per occurrence, $2,000,000 in the aggregate. 2. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $2,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles. 3. Worker s Compensation Insurance. In accordance with the provisions of Section 3300 of the Labor Code, Developer is required to be insured against liability for worker s compensation or to undertake selfinsurance. Prior to commencing the performance of the work under this Agreement, Developer agrees to obtain and maintain any employer s liability insurance with limits not less than $1,000,000 per accident. 4. The following requirements apply to the insurance to be provided by Developer pursuant to this section: a. Commercial general liability and business automobile insurance policies shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. A sample additional insured endorsement is attached hereto as Exhibit B. Developer shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. b. Certificates of insurance shall be furnished to the City upon execution of this Contract and shall be approved in form by the City Attorney. c. Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. 5. If Developer fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City s election, to forthwith terminate this Contract. Such termination shall not affect Developer s right to be paid for its time and materials expended prior to notification of termination. Developer waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. Page 17

18 ii. HOLD HARMLESS/ INDEMNIFICATION To the fullest extent permitted by law, Developer shall indemnify, defend and hold harmless City, its officers, agents and employees (collectively, the Indemnified Parties ) from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney s fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, Claims ), which may arise from or in any manner relate (directly or indirectly) to any work performed or services provided under this Contract (including, without limitation, defects in workmanship and/or materials) or Developer s presence or activities conducted performing the work (including the negligent and/or willful acts, errors and/or omissions of Developer, its principals, officers, agents, employees, vendors, suppliers, contractors, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable for any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Developer to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney s fees in any action on or to enforce the terms of the Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Developer. iii. NOTICE Any notice, tender, demand, delivery or other communication pursuant to this Contract shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic communication to the following persons: To City: Clerk of the Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA Fax With courtesy copy to: iv. TERMINATION Housing Division Manager City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) Santa Ana, CA Fax The City reserves the right to terminate the contract, without penalty, for cause immediately or without cause. 1. In the event Developer fails or refuses to timely perform any of the provisions of this Agreement in the manner required, or if Developer violates any provision of this Agreement, Developer shall be deemed in default. City shall provide written notice of such default to Developer s Project Manager. Developer shall cure said default within a period of two (2) working days. If such cure is not completed in a timely manner, Page 18

19 City may assess liquidated damages or terminate the Agreement forthwith by giving written notice to Developer s Project Manager. City may, in addition to the other remedies provided in this Agreement or authorized by law, terminate this Agreement by giving written notice of termination. Developer shall be responsible for all costs incurred by City, including replacement costs of equipment and labor required to provide service during Developer s default. 2. This agreement may be terminated without cause by City upon thirty (30) days written notice delivered to the Developer either personally or by mail. Upon termination, City shall pay to Developer that portion of compensation specified in the Agreement that is earned and unpaid prior to the effective date of termination. V. DEVELOPER OPTION FOR TERMINATION The Developer may request termination of the contract when conditions during the contract make it impossible to perform or when prevented from proceeding with the contract by act of God, by law or official action of a public authority or in the event on nonpayment by the City. Such request will require one-hundred and eighty (180) days written notice prior to contract termination date requested. In the event of nonpayment of undisputed sums by the City, Developer shall give the City thirty (30) working days to cure the alleged breach. VI. EMPLOYMENT OPPORTUNITIES FOR SANTA ANA RESIDENTS Developer shall solicit and advertise employment opportunities to Santa Ana residents. The City shall inform the Developer of areas to publicize recruitment opportunities, such as work centers and community centers. Such effort and procedure will be provided to the City for review. vii. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS 1. Developer shall perform all requirements under this contract in strict observance of and in compliance with all applicable environmental, traffic, safety and any other laws, regulations, ordinances, codes and any other legislative or statutory requirements. 2. Developer warrants that the performance of services under this contract shall be compliant with the current requirements of the Occupational Safety and Health Act (OSHA) and as it may be amended or updated throughout the term of this contract. viii. ASSIGNMENT Inasmuch as the Agreement is intended to secure the specialized services of Developer, Developer may not assign, transfer, delegate or subcontract any interest herein without the prior written consent of City and any such assignment, transfer; delegation or subcontract without the City s prior written consent shall be considered null and void. ix. JURISDICTION VENUE This Contract has been executed and delivered in the State of California and the validity, interpretation, performance and enforcement of any of the clauses of this Contract shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Contract. Page 19

20 x. FINES The Developer shall be liable for all violation fines levied against the City by State or Federal Agencies and the Courts such as, but not limited to, oil or fluid leaks. Page 20

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22 ATTACHMENT 2 TOWNSEND-RAITT PROJECT AREA Page 22

23 ATTACHMENT 3 CEDAR-EVERGREEN Page 23

24 ATTACHMENT WEST MYRTLE STREET Page 24