REQUEST FOR PROPOSALS FOR

Transcription

1 REQUEST FOR PROPOSALS FOR HOMEBUILDER(s) FOR THE NEW CONSTRUCTION OF FORTY-SEVEN (47) SINGLE DETACHED FAMILY HOMES RFP OCTOBER 20, 2009 Housing Authority of the City of Winston-Salem 500 West Fourth Street, Suite 300 Winston-Salem, North Carolina An Equal Opportunity Employer An Equal Housing Provider

2 TABLE OF CONTENTS HOMEBUILDER(s) FOR THE NEW CONSTRUCTION OF FORTY-SEVEN (47) SINGLE DETACHED FAMILY HOMES I. Introduction II. III. IV. Background Site Description Scope of Services V. Selection and Evaluation Criteria VI. Preparation and Submission of RFP Bid Packages Attachments: A. Site Plan B. Summary of 2009 Income Limits C. Non-Collusive Affidavit D. Affidavit of Non-Default E. Affirmative Action Plan F. Instructions to Bidders (HUD-5369-B) 1

3 I. INTRODUCTION The Housing Authority of the City of Winston-Salem, North Carolina ( The Authority ), pursuant to the procurement regulations of 24 CFR and applicable state law, seeks competitive proposal from a homebuilder(s) and design build team(s) for the new construction, financing, marketing and selling of up to 47 single family units on sites already owned by The Authority. No public money (federal or state) will be used by The Authority to fund any hard or soft construction costs related to this procurement solicitation. Therefore, N.C. Gen. Stat , which governs the public letting of construction and repair contracts, does not apply to this procurement solicitation, or the resulting contract award(s). Moreover, this procurement solicitation does not involve A/E services, but rather the use of pre-existing house plans which must be signed and sealed by a licensed architect. Therefore, N.C. Gen. Stat governing the award of A/E contracts does not apply to this procurement solicitation, or the resulting contract award(s). The Authority intends to adhere to an aggressive but realistic schedule for the construction of the single family homes and encourages a fast-tract construction program for this phase of development. Therefore, The Authority seeks to complete this last phase in the most expeditious and cost effective manner, and may elect in its discretion to award a contract to either one or more builders based upon the housing/unit type if it is in the best interest of The Authority. The Authority seeks a firm that has proven capacity and experience with producing and selling multiple homes in new home communities. The Authority intends to select the most responsible qualified firm, in its sole discretion, who best meets the criteria outlined in this Request For Proposal (RFP). The Authority prohibits discrimination in any manner on the basis of race, color, creed, national origin, sex, age or disability and pursues a policy of fostering, promoting and conducting business with minority and womenowned enterprises. II. BACKGROUND The Housing Authority of the City of Winston-Salem (the Authority ) is a public body corporate and politic, organized and existing under the laws of the State of North Carolina. The Authority was awarded a HOPE VI grant in 1997 by the U.S. Department of Housing and Urban Development ( HUD ) to revitalize the Kimberly Park Terrace Community. The Authority demolished its distressed public housing units and constructed a new mixed-income community through the utilization of public-private partnerships and investments. Redevelopment activities in this area consist of the development of rental and homeownership components. The three rental phases for the area have been completed and are fully occupied. The homeownership component of the development provides homeownership opportunities to low, moderate, middle-income and market rate families. Phase IIIC of the redevelopment, now referred to as Glenn Oaks II at Gateway Commons, consists of eighty-two (82) detached single family homes. Glenn Oaks II at Gateway Commons shall consist of six (6) Homeownership Replacement Units affordable to households at or below 50% of area median income ( AMI ); twenty-four (24) Homeownership Replacement Units affordable to households at or below 80% of AMI; forty (40) homes affordable to households at or below 100% of AMI; and twelve (12) market rate homes available to households at or below 115% of AMI. The Authority will work with the successful homebuilder(s) to assist in obtaining financial assistance, such as down-payment assistance, closing cost assistance and subordinate mortgages for qualified purchasers that may be available. Of the eighty-two (82) original home sites in Glenn Oaks II at Gateway Commons, The Authority now seeks homebuilder(s) for forty-seven (47) remaining homes to be built and sold in this development (the Project ). 2

4 III. SITE DESCRIPTION The Site Plans (Attachment A) has been designed according to the principles of traditional neighborhood design and supports defensible space and eyes on the street new urbanism architecture planning. The homeownership units will be constructed in Phase III-C Glenn Oaks II at Gateway Commons. The Gateway Commons community is bordered on the west by Lime Avenue, Trade Street on the north and east, and Northwest Boulevard to the south. All 47 lots are buildable and owned by the Authority and have infrastructure improvements already installed. IV. SCOPE OF SERVICES The Authority seeks qualified homebuilder(s) to finance, design, build, market and sell the remaining forty-seven (47) detached single family homes in the portion of the Glenn Oaks II at Gateway Commons neighborhood shown on Attachment A. The Authority shall act as developer of the Project and shall be eligible for a developer fee up to nine percent (9%) of the total development cost of each home sold. The developer s fee will be paid out on a pro rata basis upon the sale of each individual home. Typical lot sizes are approximately 51.5 X 119, or a minimum of approximately 6,000 square feet. The lots have been improved with underground utilities. There are no gas utilities installed on the Project site. The Authority will provide purchase money financing for the sale of each lot to be developed for the Project. The purchase money financing will be documented by a deed of trust and promissory note from the selected homebuilder(s) to the Authority that will be due and payable at the time a home is sold to a homebuyer. The cost of each buildable lot will be $13,200 and should be included in the overall sales price of the home. The Authority will not be obligated to transfer lots to the selected homebuilder(s) until the selected homebuilder(s) have provided the Authority with evidence of construction financing sufficient to construct single family homes on the lots to be conveyed. Each buildable lot is subject to existing Declarations of Restrictive Covenants in favor of HUD recorded in the Forsyth County Registry. The existing Declarations of Restrictive Covenants in favor of HUD shall be released upon the sale of each lot, together with a single family home, to a qualified purchaser. Fees to the selected homebuilder(s) shall be subject to HUD Cost Control and Safe Harbor Standards for Homeownership Development, effective April 1, 2004, which provides for the maximum allowable fees to the selected homebuilder(s) as follows: 1. A homebuilder may receive up to 6% of hard construction costs (including bond premium but excluding contingency and sales commissions) for general conditions. 2. A homebuilder may receive up to 6% of hard construction costs (excluding contingency and sales commissions) as profit. 3. A homebuilder may receive up to 2% of hard construction costs (excluding contingency and sales commissions) for overhead. A homebuilder may also receive up to 6% sales commission (homeownership counseling, marketing and sales) for the sale of each home so long as no co-brokerage commission is also payable upon the sale of a home. In the case where the homebuilder would also receive a brokerage commission, homebuilder s broker fee shall reflect local market standards and shall be split with the sales commission. A full accounting of all fees, including developer fees and sales commissions, will be due to the Authority upon the sale of each home. Some of the objectives in the development of this Project are: 1. To finance, design, build, market and sell affordable detached single family homes consistent with the character of the other construction in the new neighborhood in a timely manner. 2. To establish a homeowners association within the entire eighty-two (82) home phase of the neighborhood consistent with neighborhoods of like size and character and pursuant to existing 3

5 restrictive covenants, recorded in Book 2782, Page 509 of the Forsyth County Registry as the Declaration of Covenants, Conditions and Restrictions for Glenn Oaks. The scope of work for the Project will include, but not be limited to, the following: 1. The homebuilder(s) shall construct the remaining forty-seven (47) affordable detached single family homes consistent with the character of the neighborhood that is currently under construction. The homebuilder(s) shall monitor construction activities to ensure completion within schedule, effective cost control and compliance with federal, state and local laws. 2. The homebuilder(s) must comply with all applicable statutes, regulations, and laws, including the United States Housing Act of 1937, the Middle-Income Homeownership Program (formerly the Nehemiah-like homeownership program), the Cost Control and Safe Harbor Standards for Homeownership Development, HUD General Conditions of the Contract for Construction, and other applicable requirements as issued by HUD. 3. The homebuilder(s) shall purchase all lots as is, therefore, any additional site work, etc., will be the responsibility of the homebuilder(s). Lots will be sold to the homebuilder(s) at a cost of $13, per lot. 4. The homebuilder(s) will secure the necessary financing for the completion of this phase of development and will submit preliminary project budgets to the Authority to include sources and uses, building construction costs and associated fees, contingencies and miscellaneous costs. 5. All forty-seven homes must be considered affordable and must be sold by the homebuilder(s) to buyers at the following Area Median Income (AMI) limits: 2 homes to buyers at or below 80% of AMI; 37 homes to buyers at or below 100% of AMI; and 8 homes to buyers at or below 115% of AMI. A copy of the current Area Median Income for Forsyth County is attached hereto as Attachment B. 6. Pricing of the homes is to be determined by the homebuilder(s) according to market conditions for the area and affordability by buyers as outlined above. 7. The homebuilder(s) will be expected to provide a variety of homes and a mixture of single and two-story homes consistent with the neighborhood in appearance, quality, fixtures, finishes, porches and construction materials. The homes are to have at least three (3) bedrooms. Examples of the designs (floor plans and drawings showing elevations) intended for construction on this property are to be submitted for review and approval. All house plans proposed must be signed and sealed by a licensed architect, and must be approved by the Authority. 8. At least one model home is expected to be built and an onsite sales office to be in the model home open for a minimum of five (5) days a week (including Saturdays and Sundays) and staffed at a minimum of five (5) hours per day. 9. The homebuilder(s) will be responsible for all advertising, marketing and promotional activities and costs necessary to sell all of the homes. 10. The homebuilder(s), at its own expense, is expected to operate and manage the Glenn Oaks Homeowners Association, Inc. (including the collection of annual assessments from homeowners) for the entire eighty-two (82) home phase until control of Glenn Oaks Homeowners Association, Inc. has been properly transferred to homeowner members of the association. The Glenn Oaks Homeowners Association, Inc. shall be operated consistent with neighborhoods of 4

6 like size and character and in accordance with the terms and conditions of the existing restrictive covenants, recorded in Book 2782, Page 509 of the Forsyth County Registry as the Declaration of Covenants, Conditions and Restrictions for Glenn Oaks. Articles of Incorporation for the Glenn Oaks Homeowners Association, Inc. are recorded in Book 2782, Page 500 of the Forsyth County Registry. V. SELECTION AND EVALUATION CRITERIA The selection will be based on the technical and financial evaluation factors of each firm s submission. Selections of firms/teams will be based on the information submitted, including references. The Authority reserves the right to award the project in a manner, including multiple awards, that is in the best interest of the Authority and may combine, divide, add to, or reduce the scope of work to its benefit. All firms will be evaluated based on the criteria listed below. The process will include a written evaluation and may include an oral interview for the highest rated firm(s) to be done by an evaluation committee(s). This review process could result in the need for additional information not requested in this document and a need to do a site visit of completed projects for a more complete picture of the ability of the firm(s) to meet the needs of the Authority. In general, the Authority will be seeking a firm that possesses the following minimum qualifications: a. A minimum of five (5) years of extensive experience in the construction of similar projects; b. A thorough knowledge and understanding of North Carolina and local building and construction requirements for building residential housing; c. Demonstrated knowledge and experience with the financing, designing, building and marketing, and selling residential housing; d. Demonstrated financial and construction capacity to undertake a project of this magnitude. The following evaluation factors will be used for selection. All evaluation factors should be addressed in the RFP Submission. Each firm will have a total possible score of 100 points. 1. Professional Experience 15 Points a. Prior experience and the ability to provide a quality product; b. Relevant experience in successfully hiring and recruiting MBE/WBE and Section 3 residents and business concerns for similar projects; c. Evidence of the ability to finance, design, develop, construct, market, and sell properties and provide a return on a project. 2. Capacity 15 Points a. Evidence of sufficient qualified staff to complete the project requirements; b. Evidence of ability to meet proposed schedule; c. Evidence of available financing; d. Evidence of quality performance within a project schedule and budget; e. Evidence of compliance with all requirements of the RFP. 3. Return on investment to the Authority 10 Points a. Amount and timeliness of lot payments to the Authority; and b. Amount and timeliness of developer fees to the Authority. 4. Quality of References 5 Points 5

7 a. Strength and favorability of recommendations; b. Relevance and quality of sources. 5. Standard Specifications 5 Points a. Listing of exterior and interior materials and level of finish included in sales price. 6. Floor Plans 15 Points a. Floor plans and elevations that fit lot sizes and square footage specified in this RFP. 7. Advertising and Marketing Program 15 Points a. Strategy and plan for promoting and selling new homes. 8. Construction Costs 10 Points a. Detailed construction costs, including materials, labor, overhead and mobilization costs; b. Calculation of per square foot construction cost. 9. Pricing 10 Points a. Pricing for new homes based upon each home configuration. The Authority shall establish a competitive range for the proposals. Any proposal which has a reasonable chance to meet the Authority s objectives should be included to maximize potential competition among the proposals. Whoever scores within the competitive range shall be eligible for an interview if the Authority decides to use the interview process. The Authority waives the right to conduct oral interviews for the competitive range of bidders if such process proves unnecessary. The Authority reserves the right to reject any and all packages when it is in the best interest of the housing authority to not accept the proposal of a bidder who has not met the prerequisites of the RFP, and who has failed to complete projects on time of a similar nature or in the opinion of the Authority is not in a position to perform the work satisfactorily. The Authority also reserves the right to waive any informalities and technicalities. VI. PREPARATION AND SUBMISSION OF RFP BID PACKAGES The following items provide guidance to interested bidders as to what the proposal should contain and how it should be organized. This list is not intended to be all-inclusive. The package must demonstrate the ability to accomplish the objectives and the scope of work as stated above and address at least all of the criteria upon which the submission will be evaluated as listed below in the Evaluation Criteria section. All submissions should be in the order described below and placed in three-ring binders with tabs clearly identifying each section. One (1) original, clearly marked Original, and five (5) copies, clearly marked Copy, are required. The Authority reserved the right to reject all submissions. 1. Letter of Interest At the beginning of the proposal, the homebuilder(s) must provide a letter of interest identifying the primary contact person. The letter must be signed by an authorized principal and include a statement that the proposal will remain valid for not less than one hundred twenty (120) calendar days from the due date. 2. Description of Experience and Qualifications 6

8 a. Profile and history i. Name of entity, proposed role and experience; ii. iii. iv. Main address, telephone number, fax number and address; Contact person, title, title, telephone number, fax number and address; Provide five (5) examples of previous experience in building similar projects. v. List of not less than five (5) references; the references should be familiar enough with the projects listed above to comment on the process, costs and schedule; include name, title, organization name, telephone number, fax number, address and the name of the development with which the reference is familiar; authorization for the Authority to verify references must be included. vi. vii. viii. Provide resumes of the principal(s), general contractor, realtor, etc. Provide evidence of an unlimited general contractor s license, which is in good standing and allows firm to conduct business in the state of North Carolina. Provide evidence of real estate brokers license if real estate broker is to be used to market the homes. Statement regarding firm s commitment to comply with all applicable local, state and federal laws and regulations regarding contracting with local, small and disadvantaged business enterprises, minority/women business enterprises (MBE/WBE) and residents and business concerns under Section 3 of the Housing and Urban Development Act of 1968, as amended ( Section 3 ). Listing of any previous or current litigation and/or liens resulting from services rendered. 3. Provide minimum of three (3) examples of house plans to be built in the neighborhood along with standard specifications listing the exterior and interior building materials and that would be included. 4. Provide pricing of the homes and construction cost estimates. 5. Provide evidence of insurance which meets at least the following requirements: General Liability: $2 million Auto Liability: $1 million Workers Compensation: As required by law 6. Provide audited, reviewed or certified financial statements for the last two (2) consecutive years. 7. Proposed timeline and activities for the development of these lots. 8. Other Attachments - At the end of the submission, other promotional materials or work products that would demonstrate experience and qualifications may be attached. 7

9 Sealed envelopes containing bid packages must be labeled as stated on the cover page and must be presented so that they may be easily identified as containing a response to this solicitation. Submit 5 bid packages, including one original on company stationery. Oral or telephone modifications will not be considered. Responder s legal company name and address must be fully stated and the builder s official response must be signed and executed by a principal duly authorized to enter into contracts on behalf of the company. Bid packages must be received before[msoffice1] 3:00 PM, December 15, No package will be accepted after[msoffice2] this deadline regardless of how it is transmitted. Packages must not contain any added statement that will recapitulate, modify or interpret the terms of this solicitation. Packages received after the above stated time will not be considered. Packages received before the time requirement will be held and opened only at the specified time, except where the Authority has failed to open a bid package solely due to a clerical error on the part of the Authority. Sealed proposals shall be delivered to the attention of : Mrs. Tangela Moses-Malloy, Director of Procurement Housing Authority of Winston-Salem Attention: Procurement Department-Ground Floor 500 West Fourth Street, Suite 300 Winston-Salem, NC

10 Attachment C Non-Collusive Affidavit State of County of, being first duly sworn, deposes and says: That he is The party making the foregoing proposal or bid, that such proposal or bid is genuine and not collusive or; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any bidder or person, to put in a sham bid or to refrain from bidding, and has not in any manner, directly or indirectly sought by agreement or collusion, or communication or conference, with any person, to fix the bid price of affiant or of any other bidder, to fix overhead, profit to cost element of said bid price, or that of any other or to secure any advantage against the Housing Authority of the City of Winston-Salem or any person interested in the proposed contract; and that all statements in said proposal or bid are true. Signature of: (Bidder, if the bidder is an Individual) (Partner, if the bidder is a Partnership) (Officer, if the bidder is a Corporation) Subscribed and sworn to before me this day of, 200. My Commission Expires: (Date) (Notary Public) 9 Contract No.

11 ATTACHMENT D Affidavit of Non-Default (Prime Proposer) State of County of, being first duly sworn, deposes and says: 1. That he/she is (a Partner/Officer of the firm of ), the party making the foregoing Proposal or Proposals. 2. He/She further certifies as follows: a. That all the statements made by me are true, complete and correct to the best of my knowledge and belief and are made in good faith; b. That for the period beginning ten (10) days prior to the date of this certification, and except as shown by me on the attachment, I have not experienced defaults or noncompliance under any contract for the U.S. Department of Housing and Urban Development, or any other governmental agency with which I have contracts; c. To the best of my knowledge there are no unresolved findings raised as a result of HUD audits, management reviews or any other governmental investigations concerning me or work under any of my contracts; d. There has not been a suspension or termination of payments under any HUD contract in which I have had a legal or beneficial interest attributable to my fault or negligence; e. I have not been convicted of a felony and am not presently, to my knowledge, the subject of a complaint or indictment charging a felony. (A felony is any offense punishable by imprisonment for more than one year, but does not include any offense classified as a misdemeanor under the laws of a State and punishable by imprisonment of two years or less). f. I have not been suspended, debarred or otherwise restricted by any department or agency of the federal government or of any state government or of the City of Winston-Salem, NC, or the Housing Authority of the City of Winston-Salem from doing business with such department or agency. 10

12 Affidavit of Non-Default Page 2 g. I have not defaulted on an obligation covered by a bond and have not been the subject of a claim under fidelity bond; h. All the names of the parties, known to me to be principals in this contract, in which I propose to participate, are included on resumes submitted with this proposal; i. To my knowledge I have not been found by HUD or the State of North Carolina to be in noncompliance with in any applicable civil rights laws; j. I am not a member of Congress or a Resident Commissioner or otherwise prohibited or limited by law from contracting with the Housing Authority of the City of Winston- Salem. k. I am not an officer or employee or commissioner of the Housing Authority of the City of Winston-Salem who is prohibited or limited by law from contracting with HAWS; l. For the period beginning five (5) years prior to the date of this certification, and except as shown by me on the attachment, I have not been suspended, debarred or otherwise disqualified by the U.S. Department of Housing and Urban Development, or any other governmental agency with which I have contracted; m. Statements above (if any) to which I cannot certify, have been deleted by striking through the words with a pen. I have initialed each deletion (if any) and have attached a true and accurate signed statement (if applicable) to explain the facts and circumstances which I think help qualify me as a responsible principal in this project. 11

13 Subscribed and sworn to before me Signature of: this day (Bidder, if the bidder is an Individual) of, 200. My Commission Expires: (Date) (Partner, if the bidder is a Partnership) (Officer, if the bidder is a Corporation) (Notary Public) 12

14 ATTACHMENT E AFFIRMATIVE ACTION PLAN I. General Statement The Housing Authority of the City of Winston-Salem will select Consultants and business concerns that are in compliance with the appropriate equal opportunity employment laws the provisions of Section 3 of the Housing and Urban Development Act of 1968, and Executive Order A prime Consultant or sub-consultant who signs a contract on a Federal or federally-assisted construction project assumes the obligation to take whatever affirmative actions are necessary to assure equal employment opportunity in all aspects of employment, irrespective of race, color, creed, or national origin. It is expected that a Consultant will carry out that part of his contract pertaining to equal employment opportunity with the same amount of thought and action as he will any other part of the contract. The Housing Authority of the City of Winston-Salem hereafter referred to as "Authority" will review contract bids from all Consultants, to determine whether the bidder has met the requirements of the Affirmative Action Program. Compliance will be administered through the Authority's Equal Employment Opportunity Officer. By submitting a bid, the Consultant or sub-consultant certifies that he will comply with the requirements of this policy and shall make this affirmative action policy apart of his project specifications. For the purpose of the specifications the following terms shall have the following meanings: a. Affirmative Action procedures which establish hiring and employment goals, timetables, and practices to be implemented, with good faith efforts, for minority group members. b. Minority Group Members persons who are Black, Spanish surnamed Americans, American Indians, American Orientals and females. II. Implementation a. The Housing Authority of the City of Winston-Salem plans to implement its goals through several means. The Housing Authority's procurement policies require competitive bidding for most contracts; however, whenever this requirement is not applicable and with contracts that would normally be negotiated, the contracts that would normally be negotiated, the Housing Authority of the City of Winston-Salem intends to contract with small, local businesses, to the greatest extent feasible. 13

15 b. In the development of low rent public housing projects, the Consultant or sub-consultant in hiring shall make every effort to employ persons residing within the geographical area in order to insure that persons employed in the project will be brought into the permanent construction industry labor force. c. The Consultant and/or sub-consultant shall not discriminate against employees and applicants for employment on the grounds of race, color, religion, sex or national origin. d. The Consultant shall assure the Housing Authority of the City of Winston-Salem that the top management of the company will exert positive efforts to assure equal opportunity in employment as required by this Affirmative Action Policy. e. The Consultant will submit to the Housing Authority of the City of Winston-Salem upon request, periodic progress reports showing what action has been taken to assure continuing compliance with this Affirmative Action Policy. f. The Consultant or sub-consultant shall notify the Housing Authority of the City of Winston-Salem at the time of the bid submission the name and title of their appointed equal employment opportunity officer in order that a focal point between the Consultant or sub-consultant and the Housing Authority of the City of Winston-Salem may be established to carry out the provisions of this policy. The Consultant or sub-consultant is expected to make maximum use of apprenticeship and other training to help equalize opportunity for minority persons, taking appropriate steps such as: a. Sponsoring and assisting minority youths as well as others to enter pre-apprentice and apprentice training, and making such training available to the maximum extent within their companies. b. Actively encouraging minority employees as well as others to increase their skills and job potential through participation in training and education programs, and helping to assure that such programs are adequate and are in fact available to minority persons. c. Using as many apprentices and summer and part-time trainees - particularly from minority groups as work needs will permit. d. Assisting lower paid employees to exert their potential with respect to any of the higher paid trades to qualify themselves for such trades. III. Goals: It is not the intent of the Housing Authority of the City of Winston-Salem to require of itself or of Consultants or of sub-consultants engaged by the Authority, quotas per se in the placement of minority persons, past experiences have proven that this is in fact detrimental to the purpose of an Affirmative Action program. It is however the intent of this policy to assist in the implementation of a good faith effort. The Consultant will in seeking to achieve this ultimate goal make every good faith effort to meet employment goals. 14

16 The Housing Authority of the City of Winston-Salem will assist all Consultants and subconsultants in implementing the Affirmative Action Plans through all feasible means including but not limited to: 1. Assisting the Consultant in contacting lower income residents needed in the project. 2. Acting as a focal point for hiring, with a list of local Consultants. IV. Compliance Each prime Consultant shall be responsible for the performance of his sub-consultants for the implementation of this Affirmative Action Policy during the performance of the contract. Whenever the Consultant subcontracts a portion of the work on a project, the subcontract shall bind the sub-consultant to the obligations contained herein to the full extent as if he were the Consultant. In the event of failure by a Consultant to meet his minority manpower commitments specified herein he shall be given an opportunity to demonstrate that he has made every good faith effort to meet his commitments. In any proceeding that such good faith is in issue, all of the actions of the Consultant in seeking to comply with these requirements shall be reviewed and monitored by the Equal Opportunity Officer. 1. The Equal Opportunity Officer will issue a written Alert Notice to a Consultant whenever, in his/her opinion, a breach of these conditions appear to be developing. 2. If the Alert Notice is not removed by a correction of the deficiencies within ten (10) days, the Officer shall follow up the Alert Notice by issuing a written Violation Notice. Upon issuance of such notice, the Consultant will have seven (7) working days to remove the violation. 3. Either or both notices may be removed if the Consultant meets his obligations, or if he presents a satisfactory explanation in writing as to why such compliance is impractical or impossible. 4. Failure to satisfactorily remove a Violation Notice shall be heard by the Executive Director, and a determination by him that the Consultant is not in compliance with this policy shall result in a recommendation of sanctions by the Executive Director to the Commissioners, such recommendation shall be accepted by the Commissioners unless it is deemed unreasonable. Such sanctions may include any or all of the following: 1. The withholding of contract payments. 2. The termination or suspension of the contract. 3. Requiring the Consultant to enforce his obligation under this contract with subconsultants, either by suit at law or in equity or arbitration, whichever is appropriate. 15

17 It shall be the responsibility of the Executive Director of the Housing Authority of the City of Winston-Salem to ensure that this Affirmative Action Plan is enforced and that a continuous evaluation of compliance with the goals contained within are carried out. 16