Request for Proposals: CDBG Housing Rehabilitation Loan Program

Transcription

1 Request for Proposals: CDBG Housing Rehabilitation Loan Program To Provide Administrative Services for Community Development Block Grant Revolving Loan Funds Community Development Authority of the City of Manitowoc Released March 15, 2016

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3 I. Introduction The Community Development Authority of the City of Manitowoc (City) is soliciting proposals from qualified housing and community development firms (Consultants) to assist with the administration of the City s Community Development Block Grant (CDBG)-based housing revolving loan fund. The selected firm must demonstrate a thorough understanding of State and federal requirements as they apply to the use of CDBG dollars, an extensive background in the areas of lending and housing rehabilitation, and a willingness to work with the City to ensure efficiency and accountability. A. Program Goals The following statement of goals outlines the City s overall desires for the results of its CDBG housing revolving loan fund program. 1. Reestablish the City s owner-occupied housing rehabilitation program as a resource to help low- to moderate-income households maintain safe and decent housing and to revitalize the City s neighborhoods. 2. Comply with State and federal requirements for public outreach, application processing, loan closing, credit administration, and reporting. 3. Create a partnership between the City and a consulting firm to share the workload strategically, utilize administrative dollars efficiently, and sustain the program for the long term if possible. B. Addenda, Rejection, Cancellation, Preparation Cost The City reserves the right to revise any part of this RFP by issuing an addendum at any time prior to the submittal deadline. The City reserves the right to accept or reject, in whole or part, all proposals submitted and/or to cancel this announcement if any such action is determined to be in the City s best interest. All materials submitted in response to this RFP become the property of the City. The City will not be responsible for costs associated with preparing proposals. By submitting a proposal, each Consultant agrees to be bound in this respect and waives all claims regarding such costs and fees. II. Background A. The City Wisconsin s Maritime Capital, the City of Manitowoc, is a charming and historic community situated on the west shore of Lake Michigan. The main pillars of the Manitowoc economy consist of manufacturing, tourism, and health and educational services. According to ACS 5-Year Estimates, the City of Manitowoc had a 2014 population of 33,434 and the following housing and household characteristics: Total Housing Units 16,261 Single-Family Detached Units 10,167 Owner-Occupied Units 9,916 Median Home Value $107,000 Average Household Income $55,550 3

4 While the nature of industry and trade has changed since the City s founding in 1836, the City s strong manufacturing base and inherent natural resources, combined with its hardworking residents and innovative businesses, have enabled it to maintain a high quality of life. The City has benefited from its picturesque shoreline, quality schools and safe neighborhoods, as well as strong regional connections. The City is located along major ground and water transportation corridors connecting it to regional markets, population, and economic cores of the Midwest and beyond. B. Housing Loan Program The City of Manitowoc established a housing rehabilitation loan program in 1988 with the award of its first Small Cities Community Development Block Grant (CDBG). Manitowoc is not an entitlement community, so additional awards were sought in order to continue funding the program. From 1988 to the present, the City received a total of $4,054,350 in CDBG grant awards, and disbursed a total of $5,870, in loan funds, or 145% of grant funds awarded. Projects still active to date include $2,951, in loan funds, and a total of $2,919, in loan funds have been satisfied over the life of the program. The most recent CDBG contract with DOA allowed the City s revolving loan funds to be used for: Owner-occupant rehabilitation loans Rental unit rehabilitation loans Homebuyer/closing cost assistance program Demand within the community has primarily been for owner-occupant rehabilitation loans, so this service dominates the City s existing loan portfolio. In the past, limited numbers of loans were also provided by the City for closing cost assistance and handicap accessibility improvements. The City has also utilized a cooperative agreement with Lakeshore Community Action Program to focus the services offered by each agency and to discourage overlap. In 2012, 50% of the positions associated with the City s Community Development Department were eliminated as part of a financial stabilization plan. This included elimination of the primary staff resource who administered the City s housing rehabilitation loan program since As a result, the current status of the housing rehabilitation loan program is that new loans are not being offered for owner-occupied projects. About 400 existing loans are being serviced to the best of the City s ability, and City residents qualifying for the program were temporarily served by the Northeast Wisconsin Regional Housing RLF which is administered by the Brown County Planning Department. The City is currently in the process of repaying the Regional RLF program for the loans closed over the last year within the City of Manitowoc. The funds to repay the Regional RLF are coming from the City s RLF balance which is being replenished as previous loans are satisfied. While the 2012 reduction in staff made it impossible for the City to offer new owner-occupied rehabilitation loans, a special project presented an opportunity to put housing RLF dollars to work on a larger scale through a rental rehabilitation project now known as the Artist Lofts. The Artist Lofts project involves the renovation of the historic Mirro Plant #3 into a 5-story, loft-style apartment building. The results will be a 40-unit, adaptive reuse, multi-family project that will clean up a polluted property and house low-income households with about a quarter of the units earmarked for veterans. This loan is expected to be repaid in full in May of Anticipated loan satisfactions, less the funds owed to the Regional RLF program, are expected to yield about $200,000 in available funds to reestablish the City s program. The Wisconsin Department of 4

5 Administration (DOA) CDBG-Housing Implementation Manual states that up to 15% of loan repayments deposited into a revolving loan fund (RLF) may be used to administer loans made from the RLF. C. Revenue Projection Over the last 10 years, loan funds repaid to the City varied greatly from a high annual total of $222,041 in 2008, to a low annual total of $30,166 in Repayments over the last five years have been on a downward trend, which complicates a projection of future repayments based on past trends. Whether using a 10-year, 5-year, or even a 2-year trend to forecast for future years, the forecast shows rapid reduction in annual repayments, even though there are about $2.9 million in active loans. Utilizing the 5-year average amount of loans repaid and a one-year projection (for 2016) based on the previous 5- years provides a reasonable range of values for estimating future repayments. On this basis, expected loan repayments would fall between $51,036 per year (linear trend projection) and $78,913 per year (five-year average). If 15% of loan repayments are set aside in a Working Account for loan administration, then estimated funds available to administer the program would range from $7,655 per year to $11,837 per year. III. Anticipated Scope of Work One of the City s goals is to create a partnership with a consulting firm to share the workload strategically, utilize administrative dollars efficiently, and sustain the program for the long term if possible. In this relationship, the selected Consultant will be expected to handle the vast majority of new loan processing responsibilities, but the City is also seeking assistance with some administrative and monitoring tasks on existing loans. The City anticipates the following breakdown of primary work tasks but is also open to Consultant recommendations that would better achieve the City s goal. This is not an exhaustive listing of program responsibilities, but is intended to provide general guidance for Consultant proposal responses. If your firm is going to make a recommendation for a breakdown of services that differs from that specified here, an additional cost proposal must also be provided under Section IV.5 so that all proposals can be compared equitably. 5

6 City Responsibilities 1. Outreach Program outreach and implementation of Citizen Participation Plan Develop website, brochures, etc. Publication of public hearing, meeting, and other required notices 2. Application intake and screening Direct all inquiries to Consultant for intake and screening 3. New loan processing Schedule and conduct Community Development Authority meetings 4. Project inspections and review City inspectors will make referrals to the CDBG program City may eventually have capacity to assist with HQS inspections 5. Existing loan servicing and monitoring Continue to process requests on all existing loans (subordinations, assignments, etc.) 6. Accounting and reporting Completion of all required DOA reports Conduct the required single audit Monitor, track, and evaluate all administrative charges and the use of all CDBG funds Consultant Responsibilities 1. Outreach Participate in public hearings 2. Application intake and screening Respond to all citizen inquiries Meet with homeowners to explain CDBG process Application intake 3. New loan processing Update and maintain all application and loan closing forms to meet current requirements Prepare materials for Community Development Authority to approve loans Participate in Community Development Authority meetings Draft mortgages 4. Project inspections and review Conduct all required inspections Environmental Review document preparation Labor standards compliance Draft Work Specifications Mail bids to contractors Receive and open bids from contractors Discuss bids with homeowners Draft contracts between contractor and homeowner 5. Existing loan servicing and monitoring Acquire necessary signatures on payment requests from the homeowner and contractor Establish checking accounts Completion of required financial forms Project records completion and management Monitor homeowner insurance requirements 6. Accounting and reporting Provide all information to the City in the required formats for reporting, accounting, and audits 6

7 IV. Proposal Requirements A. Proposal Content and Organization To achieve a uniform review process and a degree of comparability, the proposals should be organized in the following order and contain all of the following information: 1. Title Page and/or Cover Letter Show the proposal title, the name of firm, address, telephone number(s), address, name of primary contact person, the date, and other relevant company information. Provide the name(s) of the person(s) authorized to make representations for your firm, their title(s), address, address, and telephone number(s). Include a list of and contact information for any proposed sub-consultants and the work they will perform. Briefly state your understanding of the services requested and make a positive commitment to provide the services as specified. 2. Experience and Examples Describe your firm s experience in the required areas of expertise, and its adaptability to provide the needed services for the City. Include examples for which your firm has supplied the same or similar services for other municipalities. Provide up to three experience summaries describing similar work and identifying client reference contact information. 3. Key Staff Identify the designated project manager or primary contact and key supporting staff, along with their availability, CDBG Housing program experience, and capacity to provide the requested services. Clearly state the person(s) assigned to oversee the administration of this program and those who will be actively involved in administrative duties. Include resumes for each of the individuals and clearly identify any sub-consultants. Please note, only CDBG Housing experience counts for the purposes of this proposal. Although the Consultant may have administered other housing programs in the past, this is not a requirement for a successful proposal. Also indicate how many other CDBG contracts your firm is servicing, including RLF administrative services and open CDBG housing contracts. 4. Scope and Approach State the services your firm is proposing to provide. At a minimum, all Consultant Responsibilities listed in the table under Section III of the RFP must be addressed. Describe your firm s ability and willingness to work in a cooperative relationship with the City to achieve successful administration of the CDBG housing program, and include any recommendations your firm has relative to a modified breakdown of program responsibilities. Identify the location of your firm s office where the program services will be provided and specify the hours of staffing. Indicate whether this site handicapped accessible. 7

8 5. Cost Provide a cost proposal statement in the following format: a. Overall cost of providing CDBG administrative services for the proposed project approach and scope of services will not exceed $ per year or % based on the amount of executed rehabilitation projects. b. Please list the cost of inspection fees and other charges to be included in the homeowner s loan. If your firm does not charge the homeowner for inspections, then please list $0 for each category. Initial Inspection fee $ Interim Inspection fee $ Final Inspection fee $ Title Search Charges $ Recording Charges $ Other: $ c. Lead Related Expenses These costs are charged to the project budget and granted to the homeowner. List $0, if this charge does not apply or is already included with another category. Risk Assessment fees $ Lead Clearance fees $ Lead Sample fees $ Lead Inspection fees $ Other: $ d. Cost Alternatives As noted in Section III (Anticipated Scope of Work), any recommendation for a breakdown of services that differs from that specified in the RFP must also provide an additional cost statement here so that all proposals can be compared equitably. Multiple alternatives can be provided, as long as each alternative includes an additional statement of cost as well. B. Submittal Requirements Proposals must be received by the City of Manitowoc by 4:30 PM on Monday, April 4, It is recommended that all proposals be submitted via certified mail or other commercial courier services in order that the Consultant will have a written record of the delivery. The following requirements must be completed in full: s 1. Two (2) original hard copies of the completed proposal 2. At least one (1) electronic copy via one of the following devices: CD, DVD, or USB 3. Please send the identified information to the City of Manitowoc at the address listed below: City of Manitowoc Attn: Nicolas Sparacio 900 Quay Street Manitowoc, WI 54220e 8

9 V. Selection Criteria and Process A. Selection Criteria The proposals will be reviewed and scored by the project selection team using the following point system. B. Selection Process Firm Experience and Examples 25 Project Approach and Scope 25 Project Cost 25 Key Project Staff 15 Proposal Document Quality 10 Total Possible Points 100 The Consultant selection process will involve the following primary steps. 1. Proposal Review Proposal review will be based on a comparative assessment and scoring of each document in accordance with the Selection Criteria identified in Section A. The City will then select one or more finalist firms to advance in the selection process. 2. Interviews The City will determine whether interviews are needed, or it may make a selection based on the proposals alone. If determined necessary by the City, the finalist firms will be requested to present their experience, proposed approaches, and personnel in an interview to members of the City s selection team. (Further interview instructions will be provided to the selected finalist firm(s).) The City will then review the presentation(s) and select a Consultant to advance in the process. 3. State and Local Approvals Based on the results of the selection process, the City s selection team will recommend to the Manitowoc Community Development Authority and the Manitowoc Common Council a Consultant for approval. Approval of the Wisconsin DOA must also be secured by the City before contracting with any outside agency for CDBG housing services. 4. Contract Negotiation The selected Consultant will submit a proposed scope of services, then work cooperatively with the City to develop the final scope and project cost. Proof of the required insurance coverage will also be required at that time. Refer to Sections C and D below for further details related to insurance, contract award, and notification. 9

10 C. Selection Timeline The following is the anticipated schedule for Consultant selection but is subject to change. Submittal Deadline April 4 Interview Scheduling April 6-8 Consultant Interviews April Consultant Selection April 15 CDA and Council Confirmation April 18 and 20 Contract Negotiation April 25-May 6 Contract Award by Council May 16 D. Rules Governing Competitive Evaluation 1. Examination of Request for Proposals Consultants should carefully examine the entire RFP, any addenda, and all related materials and data referenced in the RFP. Applicants should become fully aware of the nature of the work and the conditions while performing the work. An electronic version of this RFP and supplemental materials can be found at 2. Proposal Acceptance Period The selection of a Consultant with which to begin contract negotiation is expected to occur within four weeks of the submittal deadline. Short-listing of Consultants for interview and Consultant interviews will take place within this time period. 3. Contract Negotiations The highest-ranked Consultant will enter into negotiations with the City. If an agreement cannot be met, the City will notify the Consultant and stop negotiations. Then the second highest-ranked Consultant will enter into negotiations. This process may continue until a successful negotiation occurs. The City reserves the right to cease any negotiations with any Consultant should it be in the City s best interest. 4. Personnel Changes Prior to the execution of any contract for the requested services, the Consultant shall notify the City, in writing, of changes in key staff. The City shall have the right to terminate or renegotiate the contract if these changes will affect any work product or agreed upon timetables. 5. Compensation Compensation will be based upon a negotiated fee between the Consultant and the City determined by the actual unit cost for items of work required to perform a specific task. 6. Contract Time The Consultant shall proceed with the services specified after the execution of the contract and upon written notice from the City. The estimated contract duration for the requested services is one year. The actual duration will be specified in the contract along with options for renewal and extension. 10

11 7. Insurance Requirements The successful Consultant will be required to provide proof of required insurance coverage, naming the City as an additional insured, to the City Attorney prior to the start of work. The minimum requirements include at least $2,000,000 general liability on an occurrence basis, evidence of automobile liability, and statutory workers compensation. E. Questions and Comments All questions shall be submitted in written form to the contact information provided below. Answers will then be provided, via the City website, in written form as a part of an addendum to this RFP. City of Manitowoc Attn: Nicolas Sparacio 900 Quay Street Manitowoc, WI nsparacio@manitowoc.org Phone number: (920) For additional context on the City of Manitowoc, its housing and community development programs, and the digital version of this RFP, please visit our website at 11