REQUEST FOR PROPOSALS (RFP) FOR TROUBLED BUILDINGS INITIATIVE CONDOMINIUM PROGRAM ACQUISITION AND DISPOSITION SERVICES
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1 REQUEST FOR PROPOSALS (RFP) FOR TROUBLED BUILDINGS INITIATIVE CONDOMINIUM PROGRAM ACQUISITION AND DISPOSITION SERVICES Issued by: CITY OF CHICAGO DEPARTMENT OF COMMUNITY DEVELOPMENT Proposals due: August 26, 2009
2 REQUEST FOR PROPOSALS (RFP) FOR TROUBLED BUILDINGS INITIATIVE CONDOMINIUM PROGRAM ACQUISITION AND DISPOSITION SERVICES I. PURPOSE OF THIS REQUEST FOR PROPOSALS The historic economic stimulus legislation signed by President Obama earlier this year provides us with many opportunities to create jobs and protect people and their quality of life during these difficult economic times. Consistent with the spirit and intent of the American Recovery and Reinvestment Act, the City of Chicago proposes to use CDBG-R funds for two broad purposes: job creation and housing preservation. To that end, we are implementing innovative programs to reduce the problem of vacant and foreclosed condominiums and converting them to affordable rental units for low- and moderate-income renters. To achieve these goals, the City of Chicago Department of Community Development invites the submission of qualifications from agencies interested in providing acquisition, disposition and related services for the Troubled Building Initiative Condominium Program (the Program ). For the purposes of this RFP, Submissions means the qualification documents submitted in response to this RFP and Respondents means the agencies or individuals providing the submissions. II. TERM OF CONTRACT Any contract or grant agreement awarded pursuant to this RFP solicitation shall be for a contract period of one (1) year, subject to two (2) annual renewals. III. SCOPE OF SERVICES include, but are not limited to: Provide or manage receivership services for troubled buildings targeted by DCD, as required Acquire, stabilize, and transfer all individual condominium units in targeted buildings to a single owner/developer to accomplish deconversion of buildings to rental units Carry out or oversee emergency repairs and other code maintenance repairs Identify potential new owners who have the potential to undertake the needed rehab, prepare rehab, and assist new owners with financing Manage targeted buildings pending disposition 2
3 Manage the process for building disposition in accordance with CDBG-R policies and the contractual agreement. Negotiate with lenders, servicers, real estate managers, and attorneys to acquire targeted condominium units within the Program expenditure limits Provide monitoring and technical assistance to ensure that post-disposition rehabs are successfully completed and new owners responsibly manage these buildings Inspect properties, work with the City, and appear in court as necessary to ensure code compliance and building preservation Acquire and manage liens, including foreclosing liens Comply, as applicable, with CDBG-R regulations in relation to CDBG-R funds and CDBG-R-funded activities Data collection and reporting Execute DCD Regulatory Agreements and other documents requiring unit affordability in accordance with CDBG-R regulations IV. ELIGIBLE RESPONDENTS You are invited to respond to this RFP if your agency: For-profit or non-profit entity in good standing in the State of Illinois; Is located in and serves residents of the city of Chicago; Demonstrates significant prior experience performing the following: o Receivership services throughout the city of Chicago o Property management for large, affordable, and distressed multi-unit buildings o Working in conjunction with City departments and attorneys in Housing Court o Construction management and oversight including construction pay-outs o Underwriting, bidding, acquisition, financing, and closing sales of affordable and distressed multi-unit properties o Financial and institutional capacity to provide property management services and carry costs until expenses are approved for reimbursement o Collecting on foreclosed liens o Working with public agencies (City of Chicago, State of Illinois, HUD, etc.) o Managing data and reporting requirements for public agencies This is a competitive process open to all entities: non-profit, for-profits, faith-based, private and public. However, for-profits are prohibited from adding a profit line in their budget requests. 3
4 V. SELECTION CRITERIA Submissions by Respondents will be reviewed and evaluated by the Department of Community Development based on their answers to the following questions, as well as their capacity to meet the Scope of Services outlined in Section III: Financial capacity and experience to manage multiple, concurrent projects throughout the city of Chicago Experience in property management, rehabilitation and construction management Experience with loan processing, underwriting, and closing of real estate transactions Experience providing receivership services, lien acquisition management, foreclosure, and managing disposition of affordable housing Experience working with City departments and the Housing Court system Experience managing data and reporting requirements for public or private agencies VI. COMPENSATION Respondents selected for funding will be reimbursed as follows: o Maximum reimbursement per unit of $25,000 for expenditures of Program-related services including acquisition, repair and stabilization of properties, holding properties, bidding properties, and disposition sale of properties and third party costs, including appraisals and legal fees o Maximum administrative reimbursement of $83,333 annually to cover dedicated salaries, fringe benefits, equipment and supplies and other administrative expenses that are directly related to the Program o Agencies selected will be required to hire one or more full-time qualified staff persons dedicated to implementation of the TBI Condominium Program o For-profit respondents are prohibited from vouchering directly for profit VII. REPORTING REQUIREMENTS Respondents selected for funding will submit quarterly reports on Program activity to DCD in a format to be specified by DCD and will respond within reasonable timeframes to requests for additional information on program activity as these arise. All reporting will be in conformity with requirements of the American Recovery and Reinvestment Act of The City is committed to tracking and monitoring all Recovery Act dollars in a manner that provides transparency and accountability for Congress and taxpayers, including, but not limited to: o Must obtain a DUNS# with HUD and CCR registration 4
5 o Track job creation and retention o Track employee, subcontractor, and developer wages and hours relative to city of Chicago residents, MBE/WBE, and Davis-Bacon Act VIII. TIMETABLE FOR SUBMISSIONS The timetable for the RFP solicitation process is shown below. Note that these are target dates and may be subject to change by the Department of Community Development. Any changes to this timetable will be posted on the City s ARRA webpage at Key Activity Target Date RFP issued by Department of Community Development July 30, 2009 Submissions due August 26, 2009 Respondents notified of results September 4, 2009 Contract or grant agreement executed October 15, 2009 Any questions regarding this RFP or the grant award process must be submitted via to Anthony.Simpkins@cityofchicago.org. Each question will be answered via within 48 hours. Copies of all submitted questions and answers can be obtained by sending a request to the above address. IX. CONTENT AND FORMAT OF SUBMISSIONS All submission packages must be received no later than August 26, Submissions should be prepared on two-sided, 8 ½ x 11 paper (preferably recycled), using minimum 10-point font. Submit one (1) original signed hardcopy original set and two (2) duplicate hardcopy sets of the Submission. Sections should be labeled and organized in accordance with the subject matter sequence as set forth below and must be submitted to the following address: City of Chicago Department of Community Development ATTN: Anthony Simpkins 121 N. LaSalle, Room 1000 Chicago, IL A) Cover Letter Respondents must submit a cover letter using the attached form signed by an authorized representative of the agency. An electronic version of the form is available upon request. B) Description of Qualifications 5
6 Please respond to the following questions regarding your agency s qualifications. Total response, not including attachments, should be no more than 5 pages with a minimum 10-point font. 1) Does your agency have experience providing receivership, property management, construction monitoring, underwriting, and property disposition services? 2) How long has your agency been providing such services? 3) Do you currently receive funding from the City of Chicago or the U.S. Department of Housing and Urban Development to provide such services? If not, have you received such funding in the past? 4) Briefly describe the qualifications of the key staff responsible for administering these services. Briefly describe the role of your Board of Directors, including how often they meet. C) A list of employees with relevant experience in the following areas: Loan Underwriting Construction Management Property Management Receivership Services D) A list of at least 20 properties with description of services that your organization has provided for including: Managing rehab and/or emergency repair Receivership services / Housing Court case management Managing the acquisition and disposition of said properties Properties sold or managed subject to affordability restrictions E) The two most-recent years of Financial Statements F) IRS 501(c)(3) designation letter, if applicable G) Evidence of Good Standing to conduct business in Illinois X. GENERAL GUIDELINES FOR SUBMISSIONS A) Mandatory Criteria Respondents must meet the following criteria in order to be considered: Submittal of a completed application by the due date; Documentation of nonprofit 501(c)3 status, if applicable; Satisfactory performance on all City contracts for the past two years B) Department of Community Development s Rights To Reject Proposals The Department of Community Development reserves the right to reject any and all Submissions that do not conform to the requirements set forth in this RFP or that do not contain at least the information required by Section V. If 6
7 no Respondent is selected through this RFP process, then the Department may utilize any other method available under its procurement policies and applicable statutes and ordinances to obtain the services described here. C) Funding Contingency Selection of Respondents under this RFP is contingent on availability of funds. D) No Liability For Costs The Department of Community Development is not responsible for costs or damages incurred by Respondents, member(s), partners, subcontractors or other interested parties in connection with this RFP process. 7
8 City of Chicago Department of Community Development RFP for TROUBLED BUILDINGS INITIATIVE CONDOMINIUM PROGRAM ACQUISITION AND DISPOSITION SERVICES COVER LETTER Agency Name: Address: City: State: Zip: Phone: Fax: Website: Contact Person Name: Phone: Title: Certification: I hereby certify that I am an authorized representative of the agency named above and that the information provided in this Submission is true and correct to the best of my knowledge, information and belief. Signature: Name: Title: Date: 8
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