REQUEST FOR PROPOSALS NEW HAMPSHIRE HOUSING FINANCE AUTHORITY FOR DETERMINING THE COST TO BUILD A LOWER PRICED HOME
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- Wilfrid Butler
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1 REQUEST FOR PROPOSALS NEW HAMPSHIRE HOUSING FINANCE AUTHORITY FOR DETERMINING THE COST TO BUILD A LOWER PRICED HOME (for the starter home or down-sizing market) About New Hampshire Housing Finance Authority (NHHFA): As a self-supporting public benefit corporation, NHHFA s mission is to promote, finance and support affordable housing for the people of New Hampshire. While established by statute as a public instrumentality, NHHFA is not a state agency and receives no operating funds from state government. NHHFA operates rental and homeownership programs designed to assist low- and moderate-income persons with obtaining affordable housing. Background and Project Purpose New Hampshire is faced with an inadequate supply of housing. This need for a range of single and multi-family housing suited to and desired by younger workers, families and older residents is reflected in the current housing and economic data for the state. The data show: Low vacancy rates and a shortage of units in rental housing in most regions of the state; A low inventory of homes for sale, particularly under $300,000; Renters and homeowners who wish to move whether to larger or smaller quarters but who have limited options due to the low turnover of housing and a competitive market; Close to full employment in the state; and Businesses in the state are seeking workers and housing for those workers. In particular, these data point to a great demand for additional housing to meet the needs of an expanding workforce as well as our older residents. Increasing the supply of housing in our state is essential to our economic growth and development. It is equally important to ensure that all of New Hampshire s citizens have access to housing that meets their needs. To some degree, the private sector is responding to the demand for multi-family rental housing, primarily at the higher end of the market. However, the limited construction of traditional lowercost single-family homes inhibits movement to homeownership, prevents households from downsizing (due to lack of supply) and limits the availability of a stable labor force. Can lower-cost single-family homes be built in the state? The purpose of this study is to determine whether the cost of construction alone prohibits the development of these homes in the state. PROJECT SCHEDULE Proposal Due Date: June 8, 2018, 4:00 PM Proposed Award Date: Week of June 18, 2018 (estimated) Final deliverables due: August 31, 2018
2 SCOPE OF WORK 1. Construction estimates. The consultant shall provide several estimates of the cost to construct a free standing starter home of 800 ± to 1,500 ± sq. ft. with 1½ to 2 bathrooms and 2 to 3 bedrooms. The estimates shall not include the cost of land, but shall include full foundations. Land cost will be addressed in the Case studies, below. Industry standard profit and overhead should be included and shown separately along with any other variables (i.e., scale of a development) that the consultant deems necessary to represent the cost of construction. All assumptions shall be explicitly stated along with associated costs. Estimates shall reflect the cost of several construction methods/materials including: entirely stick-built, use of pre-site-built components and modular units. Building finishes should be fair to good and should conform to popular design conventions but without the use of exceptional materials or construction methods. The design and construction of these properties emphasizes functionality, in contrast with aesthetics or image and the design should not reflect the image of any particular occupant class. Include the estimated timeframe for construction. 2. Case studies. The consultant, with the guidance and the approval of New Hampshire Housing, shall select at least three municipalities, each representing one of the following characteristics: a. Urban with public water and sewer and a small minimum lot size (less than ½ acre); b. Suburban with public/community water or public/community sewer and minimum lots size of ½ to 2 acres; and c. Rural with well and septic system and minimum lot size of greater than 2 acres. In the selection of the municipalities, the availability of developable land which is representative of the categories above shall be a driving factor. To establish land costs in each chosen municipality, the consultant, with the concurrence of NHHFA, shall identify specific parcels that have been recently sold (in arm s length transactions) that would be suitable for the construction of starter homes and allowed by right in local regulations. Using the current land use regulations and processes in each of the selected municipalities, the consultant shall estimate the minimum sale price of homes based on the construction estimates derived above, the land costs and any required infrastructure for the specific sites, including impact fees and utility connection fees. The components of the sale price shall be stated in the technical report. The municipalities shall not be named in the technical report.
3 3. Work product. The work product will be a technical report which will record the procedure and results obtained in estimating costs and developing case studies. The report will follow a final content outline approved by NHHFA and shall contain the following: a. Matrix of costs with various options depending on the construction method and other variables as deemed necessary by the consultant and NHHFA; and b. Definitions and assumptions with a narrative describing the procedure for estimating the costs and the rational for including the chosen finishes and equipment. Include product names (i.e. window brands, flooring type) and type of heating system. c. Case studies narrative describing: i. The estimated sale price of starter homes in each location; ii. The local or state regulations and standards which affect the cost to develop in each location (minimum of 3 locations); iii. The likely timeline in the development process of each location and its impact on the final sale price of the homes including the cost of capital; and iv. Any other issues that may be unique to each location and have an effect on the sale price of the starter homes such as impact fees or site development costs (excavation etc.). d. A breakdown of the cost components (i.e. land, building construction, infrastructure, profit, cost of capital, fees) of the estimated minimum sale prices from the case studies: 4. Specifications for the technical report. a. The report will be formatted and organized in Word during the editing and reviewing process so as to be editable and shareable between the consultant and NHHFA. Tables and charts will be formatted in Excel. A final text version of the report will be delivered in Word. b. The report will employ the use of graphics and photographs to illustrate style and components of the construction for the subject units. c. The report will be available in printed format and as a PDF file. It may be made available on NHHFA s website. d. All files and illustrations used in the report must have copyright clearance, and will become the property of NHHFA. Author credit for the consultant will be given in the report. 5. Completion date. a. The project must be completed and all deliverables submitted by August 31, Once the proposal has been accepted, consultant participation in monthly progress meetings will be required. 6. This will be a work for hire. All work products will be the property of NHHFA.
4 PROPOSAL FORMAT Submit the proposal via as a PDF or Microsoft Word 8.5 x 11 document with project name and company ID on the cover. The proposal must include the following in this order: 1. Cover letter. Submit a cover letter on your letterhead signed by an authorized representative of your organization, certifying accuracy of all information in your proposal. The cover letter shall also provide the name, title, phone number, and address of the primary contact for the purpose of this RFP. Should this contract be awarded to your organization, please include similar contact information for the person who will act as project manager. 2. Approach. A general statement of the bidder s approach with particular focus on distinguishing characteristics or services. 3. Work proposed to be performed. A discussion of the consultant s general understanding of the scope of services to be provided and the major work tasks to be performed. The consultant may offer an alternative methodology which may be considered in the Selection Process. 4. Proposed cost. A breakdown of the project cost by major work task, and total project cost. 5. Project schedule. Include a chart or table schedule indicating the anticipated duration and start and completion dates for tasks, keyed to proposed work tasks. The schedule should also show consultant payments by percentage of total. 6. Relevant experience. A statement of the firm s past appropriate experience including a brief description of each project, the client s name, address and phone number. Also provide a description of the consultant s responsibilities on the project, and clarify whether this project is an example of the firm s or the individual s experience. Include a list and brief description of other projects of similar scope, complexity, and cost. 7. Key personnel. The proposal must include information about the firm s personnel, stating their proposed role in this project, education, title, related qualifications, past relevant experience and the date on which that person joined the firm. The proposal package shall specifically identify the personnel assigned. If the proposal includes the services of more than one consultant firm acting as a team, one firm must be designated as the lead firm and will be responsible for completion of all of the Scope of Work. 8. Writing and graphics sample. Please include a minimum of one sample document prepared by or under the guidance of the proposed project manager. This sample should be illustrative of the project manager s writing and design skills as well as management capabilities. 9. References. Three professional references are requested; include the person s name, title, address, address, and phone number.
5 10. Additional Information. The consultant may include any other information in the proposal that will assist NHHFA in the selection process. Submit all materials electronically to: William S. Ray Managing Director, Policy, Planning and Communications New Hampshire Housing Finance Authority SELECTION PROCESS AND CRITERIA NHHFA reserves the right, at its sole discretion, to accept or reject late proposals. All materials submitted become property of New Hampshire Housing and will not be returned. NHHFA also reserves the right to reject any and all submittals, as well as the right to issue written or notice to all participating firms of any change in the proposal submission and selection schedule. NHHFA s receipt of any proposal submitted pursuant to this Request for Proposals shall not constitute any implied intent to enter into a contract for consultant services. The selection process will consist of an evaluation of submittals and an interview of the selected consultants by NHHFA staff. Interviews will take place at NHHFA s offices in Bedford, NH or via video teleconference. After the interview process the consultant may be asked to submit other information as deemed necessary by NHHFA staff. Final selection of the consultant will be based on a number of criteria, including: Qualifications, capabilities, and resources of the consultant Appropriateness of the approach (likelihood that the proposed methodology will yield the maximum level of information) Alternative approach (if offered) Cost to complete the scope of work in this RFP Demonstration of relevant experience Quality of previous work products References Schedule of work proposed to be performed Interview Questions concerning this RFP should be directed via to William S. Ray, Managing Director, Policy, Planning and Communications, New Hampshire Housing Finance Authority at bray@nhhfa.org.
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