Housing Authority of the City of Santa Ana Project Based Vouchers Program Request for Proposals The Housing Authority of the City of Santa Ana (SAHA) is soliciting applications from developers who are planning to construct new rental housing within the jurisdictional boundaries of the City of Santa Ana, and who wish to secure Project Based Vouchers (PBVs) for their project. 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. Incomplete applications and applications submitted after the submission deadline will not be 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 will commit SAHA to making project based vouchers available for the selected project. The total number of vouchers available for commitment is 20. The number awarded to the selected project(s) will not exceed and may be less than that equal to 25 percent of the project s total units. Contracts that cover the construction of nine or more units will require the payment of Davis Bacon wages to laborers and mechanics involved in the construction. 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, SAHA s Administrative Plan (Plan) provides for operation of a PBV Program utilizing up to 20 percent of its budget authority for that purpose. The Plan is available on the City s website at: http://www.santa ana.org/cda/housingauthorityhomepage.asp Developers submitting responses to this RFP should be fully conversant with Chapter 17 of the 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 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 newly constructed housing is most appropriate, and is soliciting proposals for such projects. The Plan provides for two methods by which SAHA may solicit and select developers proposing to develop new affordable rental housing to receive a PBV contract: Page 1
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 new construction developments on any appropriately zoned site 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. Incomplete applications, and applications received after the January 25, 2011 at 5:00 p.m. deadline will not be reviewed. As stipulated in the Plan, the review panel will use the following criteria but will not be limited to these criteria in their evaluation: Owner experience and capability to build or rehabilitate rental housing; Extent to which the project furthers SAHA s goal of deconcentrating poverty and expanding housing and economic opportunities; If applicable, the extent to which services for special needs populations are provided onsite or in the immediate area for occupants of the property; and Extent to which projects have completed, or are in the process of completing, the entitlement process with the City of Santa Ana. Other criteria will include: Developer experience and capability to manage the kind of rental property that is proposed, including if applicable the experience and capability to manage special needs housing projects; Developer experience and demonstrated ability to comply fully with the requirements of HAP contracts issued by a PHA; Evidence of site control and firm commitment(s) for all financial assistance required for project development; Estimated timeline for completion of the proposed project, meaning the entitlement process is completed, all financing is secured, and the project is available for occupancy. Subsidy Layering Analysis Requirement Under federal law, SAHA cannot enter into a PBV contract for projects that will receive other forms of federal assistance 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 Page 2
SAHA has approved to receive PBVs but will not receive tax credits, SAHA will 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. Submission Requirements In order to insure comparability, all applications are to be limited to a maximum of 30 pages, excluding front and back covers, section dividers, resumes and required forms and documents such as appraisals. Applications should be typed with a standard 12 point font, double spaced and printed on 8.5 by 11 paper. Charts and schedules may be submitted in a different format as appropriate. The six required copies are to be tabbed and submitted in three ring binders. In order to conserve paper, only one copy of the required appraisals need be submitted for each application. All applications shall include information in the format and order described below. The list is designed to enable SAHA to select the best projects to receive its PBVs, and also to meet HUD and TCAC requirements for conducting a subsidy layering analysis. In its Notice of July 9, 2010 HUD specified the information that must be made available to an agency that is conducting a subsidy layering analysis. They are included in the list below. HUD requires that if only a portion of the units will receive PBVs, the information is needed for both the project as a whole and for the assisted portion. TCAC requires much of the same material for tax credit applications, and respondents who are applying for tax credits may utilize appropriate portions of that application for their response to this RFP. 1. Cover letter signed by a principal or authorized officer who may make legally binding commitments for the entity. At a minimum, the cover letter should include the following: a. An identification of the development team members. b. A statement to the effect that the developer is familiar with the content of the SAHA Administrative Plan as it relates to PBVs, and agrees to abide by its relevant requirements. c. A brief explanation of how the project site meets the Plan s Site Selection Standards, and so is consistent with SAHA s goal to deconcentrate poverty and expand housing and economic opportunities. d. An overview of the project s current status in terms of financing, site control, and entitlements. 2. A narrative description of the project. This description should include the total number of units and their bedroom distribution, both for the project as a whole and for the assisted portion. 3. A detailed explanation of how the availability of PBVs at the proposed site will be consistent with SAHA s goal of deconcentrating poverty and expanding housing and economic opportunities. See Section 17 II.G. of the Plan for the specific items to be addressed. 4. Sources and uses of funds statement. This statement should be provided for the project as a whole and for the PBV units separately. Page 3
a. List each source separately, and indicate what form it will take: loan, grant, equity contribution, etc. b. Uses should be detailed, and should not include such broad categories as soft costs. Acquisition costs should distinguish the purchase price from related costs such as appraisal, survey, titled and recording, and related legal fees. Construction and rehabilitation should include builder s profit and overhead as separate items. In Appendix F to its June 9, 2010 Final Notice on Subsidy Layering Reviews for proposed PBV contracts, HUD identified the items that should be included in a Sources and Uses Statement. These are listed in the Appendix to this RFP. 5. Funding source narrative. For each funding source, the narrative should include such details as interest rate, loan term, and reserve requirements. This should be provided for the project as a whole, and separately for the PBV units. a. If equity contributed to the project will be paid in installments over time, a schedule should be provided showing the amount and timing of planned contributions. b. If the financing plan includes a bridge loan so that proceeds can be paid up front when equity contributions are planned over an extended period, appropriate details are to be provided. 6. Stabilized operating pro forma projected over a 15 year period. Information should be provided for the project as a whole, and separately for the PBV units. 7. Letters or other evidence of financing commitment. 8. An explanation of how any remaining financing gaps are to be closed. 9. An as is appraisal report prepared by a licensed, state certified appraiser. An appraisal establishing value after the construction is complete is not acceptable unless an as is value is included. 10. A schedule of proposed PBV gross rent amounts and an appraisal prepared by a licensed, state certified appraiser which must include HUD form 92273. This form may be downloaded at the following site: http://www.hudclips.org/forms/hud 92273 11. Resumes for the key team members, including information on their experience in developing and managing rental properties highlighting those properties operating under HAP contracts. a. As applicable, resumes should include a list of similar projects that the team member has been responsible for developing and/or managing, and contact information for a person familiar with the team member s performance on that project. 12. Detailed information and documentation of site control. 13. Detailed information and documentation on the project s status to date in obtaining the necessary entitlements through the City of Santa Ana Planning and Building Agency. 14. A management plan for the project describing the procedures that will be implemented to insure compliance with SAHA s Administrative Plan requirements. 15. A detailed timeline beginning with SAHA s announcement of its PBV contract awards and ending with the City s issuance of a certificate of occupancy. For purposes of the timeline only, assume the announcement of PBV contract awards will be made January 28, 2011. At a minimum, and as relevant, the timeline should include the securing of entitlements, site Page 4
control, financing, start of construction, completion of construction, availability for occupancy. 16. Standard Disclosure and Perjury Statement HUD Form 2880. This form may be downloaded at the following site: http://www.hudclips.org/download/hud 2880 17. Identities of Interest/Related Parties Disclosure for applicant entity and all general partners. Submission Procedures Six (6) hard copies of all submission documents must be submitted to SAHA no later than January 25, 2011 at 5:00 p.m. They are to be delivered to the following address: Ms. Shelly Landry Bayle Housing and Neighborhood Development Manager 20 Civic Center Plaza, M 37 Third Floor Santa Ana, CA 92701 Proposals may not be submitted by fax or by email. Proposals received after the deadline will not be reviewed. Incomplete proposals, or those judged by the review panel to have provided insufficient information to allow for adequate review, will be rejected as nonresponsive. Questions regarding the RFP or the submission requirements should be submitted in writing or by fax or email to the following: Mr. Terry Gilbreth Housing Programs Analyst 20 Civic Center Plaza, M 37 Santa Ana, CA 92701 Fax: (714) 667 2221 Email: TGilbreth@Santa Ana.Org All such questions must be submitted no later than January 7, 2011 at 5:00 P.M. SAHA will endeavor to post responses on the SAHA website page located at http://www.santaana.org/cda/housingauthorityhomepage.asp by January 11, 2011 at 5:30 P.M. Any changes to the application will also be posted at this same location and by this same date. Selection Procedures At the end of the submission period, SAHA will convene a review panel comprised of staff members. Each staff member will receive copies of the applications, and will review and score them using the criteria identified above. The panel will then convene to review and discuss their individual findings, and to prepare final ratings for all applications. Those ratings and the panel s recommendations will be submitted to the SAHA Executive Director for the final determination. In accordance with the requirements of the Plan, SAHA will send a written communication to all parties informing them of the results. SAHA will also publish those results in the Orange County Reporter and on the above referenced website. All application materials become SAHA property, and are subject to public records requests. Page 5
Appendix The following itemization is based on the Sample Sources and Uses Statement contained in Appendix F to HUD s July 9, 2010 Public Notice on Subsidy Layering Reviews for proposed PBV contracts. The Notice and the Appendix may be reviewed at: http://www.hud.gov/offices/pih/programs/hcv/fmd/fr 5417 N 01.pdf. Sources Amount Uses Amount Debt Sources Mortgage Replacement Cost Uses Mortgage Total Land Improvements Loans Total Structures Other Loans (Specify) General Requirements Other (Specify) Builders General Overhead Equity Sources Builder s Profit Grants Available for Project Use Developer Fee Estimated Net Syndication Architects Fees Proceeds (To be completed By TCAC) Additional Owner Equity Required Bond Premium Other Equity Sources ( Specify) Other Fees Total Sources Construction Interest Taxes Examination Fee Inspection Fee Financing Fee FNMA/GNMA Fee Title and Recording Legal Organization Cost Certification Fee Contingency Reserve (Sub Rehab) BSPRA/SPRA (If Applicable) Acquisition Costs Subtotal Mortgageable Replacement Cost Uses Non Mortgage Uses (I.E. Payable by Non Mortgage Sources) Working Capital Reserve or Operating Deficit Reserve Subtotal Non Mortgageable Uses Total Project Uses Page 6