City of Des Moines Municipal Housing Agency (DMMHA) Project Based Voucher Program RFP

Transcription

1 City of Des Moines Municipal Housing Agency (DMMHA) Project Based Voucher Program RFP Request for Proposals City of Des Moines Municipal Housing Agency 2309 Euclid Avenue Des Moines, Iowa Due: December 7,

2 INTRODUCTION The City of Des Moines Municipal Housing Agency (DMMHA) Project-Based Voucher (PBV) Program encourages property owners to make rental housing available to lower income families at rents within the Section 8 Fair Market Rents. The DMMHA is currently accepting proposals/applications for the Section 8 Project Based Voucher Program from property owners of newly constructed housing. Newly constructed units are defined as units that do not exist on the proposal selection date and are developed after the date of selection pursuant to an Agreement between the DMMHA and property owner. The DMMHA will be accepting proposals for utilization of fifty (50) project based vouchers per proposal. DMMHA may award multiple proposals based on available funding. While not required, DMMHA prefers proposals/applications for housing projects that will provide supportive services to the residents of the project. Proposals will score significantly higher with a supportive services component. For more information on the Department of Housing and Urban Development (HUD) requirements regarding the project based voucher program, see: (Project Based Voucher information is in 24 CFR 983.) and also US Department of Housing and Urban Development s Notice PIH at I. DESCRIPTION OF THE DMMHA PROJECT BASED VOUCHER PROGRAM The Project Based Voucher Program (PBV) is rental assistance for eligible families and individuals who live in specific housing developments or units within Polk County. Project Based Voucher Income-mixing requirements must be met as described in Section I.1.2 below. Under the PBV program, DMMHA enters into a housing assistance payment contract with the owner for specified rental units, for a specified term (up to twenty years) subject to funding availability. Rental assistance or subsidy is provided while eligible families occupy the rental housing units and the units meet other program standards. To fill vacant project-based units, DMMHA will refer families from the PBV waiting list to the project owner. DMMHA subsidy standards determine the appropriate unit size based on the family size and composition. A housing subsidy is paid to the landlord directly by DMMHA on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the PBV program. 1.1 Housing units and/or projects NOT eligible for PBV assistance include: DMMHA is not accepting proposals for housing units (whether or not rehabilitated) that are existing prior to issuance of this RFP; Shared housing units; Units on the grounds of a penal, reformatory, medical, mental, or similar public or private institution; Nursing homes or facilities providing continuous psychiatric, medical, nursing service, board and care, or intermediate care (assistance may be approved for a dwelling unit in an assisted living facility that provides home health care service such as nursing and therapy for residents of the housing); Units owned or controlled by an educational institution or its affiliate and are designed for occupancy by the students of the institution; 2

3 Manufactured homes; Cooperative housing; Transitional housing; High-rise elevator projects for families with children; Owner-occupied housing; Units occupied by an ineligible family; Subsidized housing types determined ineligible in accordance with HUD regulations. (a) A public housing dwelling unit; (b) A unit subsidized with any other form of Section 8 assistance (tenantbased or project-based); (c) A unit subsidized with any governmental rent subsidy (a subsidy that pays all or any part of the rent); (d) A unit subsidized with any governmental subsidy that covers all or any part of the operating costs of the housing; (e) A unit subsidized with Section 236 rental assistance payments. However, the DMMHA may attach assistance to a unit subsidized with Section 236 interest reduction payments; (f) A unit subsidized with rental assistance payments under Section 521 of the Housing Act of 1949 (a Rural Housing Service Program). However, DMMHA may attach assistance for a unit subsidized with Section 515 interest reduction payments; (g) A Section 202 project for non-elderly persons with disabilities (assistance under Section 162 of the Housing and Community Development Act of 1987); (h) Section 811 project-based supportive housing for persons with disabilities; (i) Section 202 supportive housing for the elderly; (j) A Section 101 rent supplement project; (k) A unit subsidized with any form of tenant-based rental assistance (as defined at 24 CFR 982.1(b)(2)) (e.g., a unit subsidized with tenant-based rental assistance under the HOME program); (l) A unit with any other duplicative federal, state, or local housing subsidy, as determined by HUD or by DMMHA in accordance with HUD requirements. For this purpose, housing subsidy does not include the housing component of a welfare payment; a social security payment; or a federal, state, or local tax concession (such as relief from local real property taxes). 1.2 Allowable Number of Project Based Voucher Units within a Project: Income Mixing Requirement (Project Cap) - A project is defined as a single building, multiple contiguous buildings, or multiple buildings on contiguous parcels of land. The greater of 25 units or 25 percent of units in a project may have project based voucher assistance. Allowable HUD exceptions include multi-family units specifically made available for elderly families and units made available for families eligible to receive supportive services. Units in projects that are located in a census tract with a poverty rate of twenty percent (20%) or less have a project based voucher 3

4 assistance cap up to the greater of 25 units or 40 percent of units in the project. Single family units, defined as one to four units within a building are not subject to a cap. The DMMHA will be accepting proposals for no more than fifty (50) total project based voucher units per proposal. 1.3 Acceptable Sites - Sites selected for PBV assistance must meet all of the following: Be consistent with the goal of de-concentrating poverty and expanding housing and economic opportunities. As such, DMMHA will limit approval of sites for PBV housing to units within census tracts that have poverty concentrations of 20 percent or less. However, DMMHA will grant exceptions to the 20 percent standard for such cases that DMMHA determines that the PBV assistance will complement other local redevelopment activities designed to deconcentrate poverty and expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent, such as sites in: a) A census tract in which the proposed PBV development will be located in a HUD-designated Enterprise Zone, Economic Community, or Renewal Community; b) A census tract in which the concentration of assisted units will be or has decreased as a result of public housing demolition and HOPE VI redevelopment; c) A census tract in which the proposed PBV development will be located is undergoing significant revitalization as a result of state, local, or federal dollars invested in the area; d) A census tract in which new market rate units are being developed where such market rate units will positively impact the poverty rate in the area; e) A census tract in which there has been an overall decline in the poverty rate within the past five years; or f) A census tract where there are meaningful opportunities for educational and economic advancement. Go to to determine poverty concentrations of census tracts. Must meet Housing Quality Standards (HQS) site standards which are: a) Performance requirement. The site and neighborhood must be reasonably free from disturbing noises and reverberations and other dangers to the health, safety, and general welfare of the occupants. b) Acceptability criteria. The site and neighborhood may not be subject to serious adverse environmental conditions, natural or manmade, such as dangerous walks or steps; instability; flooding, poor drainage, septic tank back-ups or sewage hazards; mudslides; abnormal air pollution, smoke or dust; excessive noise, vibration or vehicular traffic; excessive accumulations of trash; vermin or rodent infestation; or fire hazards. Must be in full compliance with the applicable laws regarding non-discrimination and accessibility requirements; Must meet HUD regulations for site and neighborhood standards for the proposal type being submitted: 4

5 New Construction Site and Neighborhood Standards: a) The site must be adequate in size, exposure, and contour to accommodate the number and type of units proposed; b) The site must have adequate utilities and streets available to service the site; c) The site must not be located in an area of minority concentration unless the DMMHA determines that sufficient, comparable opportunities exist for housing for minority families in the income range to be served by the proposed project outside areas of minority concentration or that the project is necessary to meet overriding housing needs that cannot be met in that housing market area; d) The site must not be located in a racially mixed area if the project will cause a significant increase in the proportion of minority to non-minority residents in the area. e) The site must promote a greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; f) The neighborhood must not be one that is seriously detrimental to family life or in which substandard dwellings or other undesirable conditions predominate; g) The housing must be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units; and h) Except for housing designed for elderly persons, the housing must be located so that travel time and cost via public transportation or private automobile from the neighborhood to places of employment is not excessive. 1.4 Inspection of Units DMMHA will examine the proposed site before the proposal selection date to determine that the project will meet the Project Based Voucher definition of newly constructed units and HUD site standards. No Housing Assistance Payments Contract will be executed until the building has a current certificate of occupancy (if required), rental certificate (if required), and the unit fully complies with HQS and HUD site standards. Prior to providing assistance to any new family in a contract unit, DMMHA must inspect the unit and the unit must meet HQS, as determined by DMMHA. At least annually during the term of the HAP contract, DMMHA must inspect a random sample of units which will consist of at least 20 percent of the contract units in each building to determine if the contract units and the premises are maintained in accordance with HQS. If more than 20 percent of the annual sample of inspected contract units in a building fail the initial inspection, DMMHA must re-inspect 100 percent of the contract units in the building. The DMMHA may not make any HAP payment to the owner for a contract unit during any period in which the unit does not comply with HQS. If the DMMHA determines that a contract unit does not comply with HQS, the DMMHA may exercise any of its remedies under the HAP contract for any or all of the contract units. Available remedies include 5

6 termination of housing assistance payments, abatement or reduction of housing assistance payments, reduction of contract units, and termination of the HAP contract. 1.5 Subsidy Layering Requirements A subsidy layering review must be conducted by HUD or an independent entity approved by HUD, if applicable. A subsidy layering review is intended to prevent excessive public assistance for the housing by combining housing assistance payment subsidy under the PBV program with other governmental housing assistance from federal, state, or local agencies, including assistance such as tax concessions or tax credits. The DMMHA will not enter into an Agreement to Enter into a Housing Assistance Payments Contract (AHAP) until HUD, or an independent entity approved by HUD has conducted any required subsidy layering review and determined that the PBV assistance is in accordance with HUD subsidy layering requirements. The AHAP contract will contain an owner s certification that the project has not received and will not receive (before or during the term of the HAP contract) any public assistance for acquisition, development, or operation of the housing other than assistance disclosed in the subsidy layering review. A subsidy layering review is required for newly constructed units. 1.6 Environmental Review - Activities under the PBV program are subject to HUD environmental regulations and may be subject to review under the National Environmental Policy Act by local authorities. DMMHA will not enter into an Agreement to Enter into a Housing Assistance Payments (AHAP) Contract with an owner until the environmental review is completed. 6

7 1.7 Rent to Owner - Except for certain tax credit units, the rent charged by the owner must not exceed the lowest of: An amount determined by DMMHA, not to exceed 110 percent of the applicable fair market rent (FMR) for the unit bedroom size minus any utility allowance; The reasonable rent; or The rent requested by the owner. Certain Tax Credit Units- For tax credit contract units meeting all of the following criteria rent will be figured in the manner below. The contract unit receives a low-income housing tax credit under the Internal Revenue Code of 1986; The contract unit is not located in a qualified census tract; (qualified census tract is defined as any census tract in which at least 50 percent of households have an income of less than 60 percent of Area Median Gross Income or where the poverty rate is at least 25 percent and where the census tract is designated as a qualified census tract by HUD) There are comparable tax credit units of the same bedroom size as the contract unit in the same building, and the comparable tax credit units do not have any form of rental assistance other than the tax credit; and The tax credit rent (defined as the rent charged for comparable units of the same bedroom size in the building that also receive the low-income housing tax credit but do not have any additional rental assistance including tenant-based voucher assistance) exceeds a DMMHA-determined amount (not to exceed 110 percent of the fair market rent or any approved exception payment standard). For tax credit contract units that meet all of the above listed criteria for certain tax credits, the rent to owner must not exceed the lowest of: The tax credit rent minus any utility allowance; The reasonable rent; or The rent requested by the owner. Current local Fair Market Rents for determining rents are: Unit Size (Number of HUD s Fair Market Rent Bedrooms) Effective 10/1/18 110% of HUD s Fair Market Rent 0 $614 $675 1 $736 $810 2 $910 $ $1226 $ $1357 $ $1561 $ $1764 $ $1968 $2165 7

8 1.7 Rent to Owner Continued When determining the initial contract rent to the owner, the DMMHA will use the most recently published Fair Market Rent (FMR) in effect and the utility allowance schedule in effect at the execution of the HAP contract. Upon written request by the owner, the DMMHA will consider using the FMR or utility allowances in effect during the 30-day period before the start date of the Housing Assistance Payment Contract, or redetermination of rent. The owner must explain the need to use the previous FMRs or utility allowances and include documentation in support of the request. The DMMHA will review and make a decision based on the circumstances and merit of each request. In addition to considering a written request from an owner, the DMMHA may decide to use the FMR or utility allowances in effect during the 30-day period before the start date of the HAP contract, or redetermination of rent, if the DMMHA determines it is necessary due to DMMHA budgetary constraints. Current Utility Allowances are below: UTILITY OR MONTHLY DOLLAR ALLOWANCE FOR SINGLE FAMILY UNIT SERVICE 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Cooking-electric $ 6 $ 7 $ 10 $ 12 $ 15 $ 16 Cooking-natural gas $ 4 $ 6 $ 7 $ 9 $ 11 $ 12 Heat-electric $ 37 $ 50 $ 60 $ 76 $ 86 $ 100 Heat-natural gas $ 34 $ 47 $ 56 $ 70 $ 80 $ 93 Other electrical $ 19 $ 25 $ 33 $ 41 $ 51 $ 55 Air Conditioning $ 1 $ 2 $ 2 $ 2 $ 3 $ 3 Range/Microwave $ 4 $ 4 $ 5 $ 5 $ 6 $ 6 Refrigerator $ 5 $ 5 $ 5 $ 5 $ 5 $ 6 Trash Collection $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 Sewer $ 19 $ 19 $ 23 $ 31 $ 35 $ 37 Water $ 13 $ 13 $ 17 $ 22 $ 26 $ 32 Water heating-electric $ 8 $ 11 $ 14 $ 18 $ 22 $ 23 Water heating-nat. gas $ 5 $ 7 $ 9 $ 12 $ 14 $ 15 UTILITY OR MONTHLY DOLLAR ALLOWANCE FOR SEMI-DETACHED UNIT SERVICE 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Cooking-electric $ 6 $ 7 $ 10 $ 12 $ 15 $ 16 Cooking-natural gas $ 4 $ 6 $ 7 $ 9 $ 11 $ 12 Heat-electric $ 34 $ 44 $ 58 $ 72 $ 84 $ 96 Heat-natural gas $ 32 $ 41 $ 54 $ 67 $ 78 $ 89 Other electrical $ 19 $ 25 $ 33 $ 41 $ 51 $ 51 Air Conditioning $ 1 $ 1 $ 2 $ 2 $ 3 $ 3 Range/Microwave $ 4 $ 4 $ 5 $ 5 $ 6 $ 6 Refrigerator $ 5 $ 5 $ 5 $ 5 $ 5 $ 6 Trash Collection $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 Sewer $ 19 $ 19 $ 23 $ 31 $ 35 $ 37 Water $ 13 $ 13 $ 17 $ 22 $ 26 $ 32 Water heating-electric $ 8 $ 11 $ 14 $ 18 $ 22 $ 23 Water heating-nat. gas $ 5 $ 7 $ 9 $ 12 $ 14 $ 15 8

9 UTILITY OR MONTHLY DOLLAR ALLOWANCE FOR MULTI-FAMILY UNIT SERVICE 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Cooking-electric $ 8 $11 $ 14 $ 18 $ 22 $ 23 Cooking-natural gas $ 4 $ 6 $ 7 $ 9 $ 11 $ 12 Heat-electric $ 39 $ 40 $ 53 $ 66 $ 79 $ 91 Heat-natural gas $ 28 $ 37 $ 49 $ 61 $ 74 $ 84 Other electrical $ 19 $ 25 $ 33 $ 41 $ 51 $ 55 Air Conditioning $ 2 $ 5 $ 7 $ 10 $ 12 $ 15 Range/Microwave $ 4 $ 4 $ 5 $ 5 $ 5 $ 6 Refrigerator $ 5 $ 5 $ 5 $ 5 $ 5 $ 6 Trash Collection $ 12 $ 12 $ 12 $ 12 $ 12 $ 12 Sewer $ 19 $ 19 $ 23 $ 31 $ 35 $ 37 Water $ 13 $ 13 $ 17 $ 22 $ 26 $ 32 Water heating-electric $ 8 $ 11 $ 14 $ 18 $ 22 $ 23 Water heating-nat. gas $ 5 $ 7 $ 9 $ 12 $ 14 $ Re-determination of Contract Rent DMMHA must re-determine the rent to owner at the owner s request and/or when there is a ten percent or greater decrease in the published FMR, whenever a change in the allocation of responsibility for utilities between owner and tenant occurs, whenever the HAP contract is amended to substitute a different contract unit in the same building occurs, and whenever there is any other change that may substantially affect the reasonable rent. An owner may only request a rent increase re-determination at the annual anniversary of the HAP contract by proper written notice to DMMHA. An owner s request for a rent increase must be submitted in writing to the DMMHA sixty (60) days prior to the anniversary date of the HAP contract. 1.9 Reasonable Rent DMMHA will conduct a comparability analysis for each PBV contract unit which will include at least three comparable units in the private unassisted market. At all times during the term of the HAP contract, the rent to owner for a contract unit must not exceed the reasonable rent. By accepting each monthly housing assistance payment from DMMHA, the owner will be certifying that the contract rent is not more than the rent charged by the owner for comparable unassisted units in the premises Agreement to Enter Into Housing Assistance Payments Contract (Agreement) Required for New Construction or Rehabilitation. Housing selected for this type of assistance may not at a later date be selected for PBV assistance as existing housing. See Exhibit A & B for PBV Agreement to Enter HAP Contract (HUD form 52531A & 52531B). At a minimum, the Agreement must describe the following features of the housing to be developed and assisted under the PBV Program: Site and the location of the contract units; Number of contract units by area (size) and number of bedrooms and bathrooms; 9

10 Services, maintenance, or equipment to be supplied by the owner without charges in addition to the rent; Utilities available to the contract units, including a specification of utility services to be paid by the owner and utility services to be paid by the tenant; An indication of whether or not the design and construction requirements of the Fair Housing Act and section 504 of the Rehabilitation Act of 1973 apply to units under the Agreement. If applicable, any required work item resulting from these requirements must be included in the description of work to be performed under the Agreement; Estimated initial rents to owner for the contract units; Description of the work to be performed under the Agreement. For new construction units, the description must include the working drawings and specifications. Any additional requirements for quality, architecture, or design over and above HQS. The Agreement will also include, but may not be limited to: Certification by owner that the owner and other project principals are not on the U.S. General Services Administration list of parties excluded from federal procurement and non-procurement programs. Labor standards clauses required by HUD such as those involving Davis- Bacon wage rates. Owner disclosure of any possible conflict of interest that would be a violation of the Agreement, the HAP contract or HUD regulations. The deadlines for completion of housing and specify the deadline for submission by the owner of the required evidence of completion. At the DMMHA s discretion, the Agreement may specify additional documentation that must be submitted by the owner as evidence of housing completion. The DMMHA will determine the need to submit additional documentation on a case-by-case basis depending on the nature of the PBV project. All terms of this RFP. The DMMHA will not enter into the Agreement with the owner until the subsidy layering review is completed. Likewise, the DMMHA will not enter into the Agreement until the environmental review is completed and the DMMHA has received environmental approval. 10

11 1.11 Housing Assistance Payment (HAP) Contract See Exhibit C for Newly Constructed and Rehabilitated Housing HAP Contract. DMMHA will enter into a Housing Assistance Payments (HAP) contract with the owner for all sites selected and approved for PBV assistance after each contract unit has been inspected and DMMHA has determined that the unit complies with Housing Quality Standards (HQS). In the case of newly constructed housing the HAP contract will not be executed until after the DMMHA has inspected the completed units and has determine the units were completed in accordance with the Agreement and the owner has furnished all required evidence of completion. The DMMHA will not enter into a HAP contract with an owner for an initial term of less than one year. The term of all Project Based Voucher HAP contracts will be negotiated with the owner on a case-by-case basis. Single HAP Contract Anniversary and Expiration Date- There is a single annual anniversary and expiration date for all units under a particular HAP contract, even in cases in which contract units are placed under the HAP contract in stages (on different dates) or units are added by amendment. The anniversary and expiration dates for all units will coincide with the dates for the contract units that were originally placed under contract. HAP Contract Extensions- Within one year before expiration of the HAP contract, the DMMHA may extend the term of the contract for an additional term if the DMMHA determines an extension is appropriate to continue providing affordable housing for low-income families. Subsequent extensions are subject to the same limitations. When determining whether or not to extend an expiring PBV contract, the DMMHA will consider several factors including, but not limited to: The cost of extending the contract and the amount of available budget authority; The condition of the contract units; The owner s record of compliance with obligations under the HAP contract and lease(s); Whether the location of the units continues to support the goals of deconcentrating poverty and expanding housing opportunities; and Whether the funding could be used more appropriately for tenant-based assistance. Any initial contract and contract extensions terms may not exceed twenty (20) years cumulatively. HAP Contract Unit Vacancies- If any contract unit is vacant for 120 days, the DMMHA will give a written 30 day notice to the owner that the HAP contract will be amended to reduce the number of contract units that have been vacant for this period. The amendment to the HAP contract will be effective the 1 st day of the month at least 30 days following the date of the DMMHA s notice Housing Assistance Payments During the term of the HAP contract, payments will be made for each month that a contract unit complies with HQS and is leased to and 11

12 occupied by an eligible family. The owner has no right to receive housing assistance payments if the owner is not in compliance with the provisions of the HAP contract. The owner may only keep the housing assistance payment for the calendar month the family moves out. The DMMHA will require the owner to repay any HAP amounts overpaid to the owner Selection of Tenants- Applicants who will occupy units with PBV assistance must be selected from a DMMHA s Project Based Voucher waiting list. The DMMHA must offer to place applicants listed on DMMHA s tenant based voucher waiting list onto the project based voucher waiting list. The DMMHA may place families referred by the PBV owner on to the DMMHA s PBV waiting list, although the families will still be subject to DMMHA s screening criteria. DMMHA has no responsibility or liability to the owner or any other person for the family's behavior or suitability for tenancy. The owner is responsible for screening and selection of the family referred by DMMHA to occupy the owner's unit based on the family s tenancy history. An owner must promptly notify in writing any rejected applicant and the DMMHA of the grounds for any applicant rejection. Owner s Tenant Selection Procedures- The owner is responsible for developing written tenant selection procedures that are consistent with the purpose of improving housing opportunities for very low-income families and an applicant s ability to fulfill their obligations under the lease. In addition to providing the written tenant selection procedures as part of the request for proposal process, DMMHA will require an owner provide an updated copy of the written tenant selection procedures at the time of any requested rent increase. Appropriate Unit Size- The contract unit leased to the family must be the appropriate size unit for the size of the family, based on the DMMHA s subsidy standards. Prohibition of Discrimination- The owner may not refuse to lease contract units to, or otherwise discriminate against any person or family in leasing of a contract unit, because of race, color, religion, sex, national origin, disability, age or familial status. The owner must comply with the following requirements: The Fair Housing Act (42 U.S.C ) and implementing regulations at 24 CFR part 100 et seq. ; Executive Order 11063, as amended by Executive Order (3 CFR, Comp., p. 652 and 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing Programs) and implementing regulations at 24 CFR part 107; title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4) (Nondiscrimination in Federally Assisted Programs) and implementing regulations at 24 CFR part 1; the Age Discrimination Act of 1975 (42 U.S.C ) and implementing regulations at 24 CFR part 146; section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at part 8 of this title; title II of the Americans with Disabilities Act, 42 U.S.C et seq. ; 24 CFR part 8; section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations at 24 CFR part 135; Executive Order 11246, as amended by Executive Orders 11375, 11478, 12086, and (3 CFR, Comp., p. 339; 3 CFR, Comp., p. 684; 3 CFR, Comp., p. 803; 3 CFR,

13 Comp., p. 230; and 3 CFR, 1978 Comp., p. 264, respectively) (Equal Employment Opportunity Programs) and implementing regulations at 41 CFR chapter 60; Executive Order 11625, as amended by Executive Order (3 CFR, Comp., p. 616 and 3 CFR, 1977 Comp., p. 139) (Minority Business Enterprises); Executive Order (3 CFR, 1983 Comp., p. 198) (Minority Business Enterprise Development); and Executive Order 12138, as amended by Executive Order (3 CFR, 1977 Comp., p. 393 and 3 CFR, 1987 Comp., p. 245) (Women's Business Enterprise). The owner must also comply with all local and state prohibition of discrimination requirements Not Applicable Owner s Lease- The tenant and the owner must enter into a written lease agreement that is signed by both parties. If an owner uses a standard lease form for rental units to unassisted tenants in the locality or premises, the same lease must be used for PBV Program assisted tenants, except that the lease must include a HUD-required tenancy addendum. (See Exhibit D) The tenancy addendum must include, word-for-word, all provisions required by HUD. The initial lease term must be for at least one year. During the course of the tenant s initial lease term, the owner may not terminate the lease without good cause. Good cause does not include a business or economic reason or desire to use the unit for an individual, family or non-residential rental purpose. Upon expiration of the lease, the owner may renew the lease; refuse to renew the lease for good cause; or refuse to renew the lease without good cause. If the owner refuses to renew the lease without good cause, the DMMHA will remove the unit from the PBV HAP contract. If the tenant and owner agree to any change in the lease, the change must be in writing, and the owner must immediately give the DMMHA a copy of all changes. The owner must give DMMHA advance 60 days written notice of any proposed change in the lease regarding the allocation of tenant and owner responsibilities for utilities. Such changes may only be made if approved by the DMMHA and in accordance with the terms of the lease relating to its amendment. The DMMHA must redetermine reasonable rent, in accordance with program requirements, based on any change in the allocation of the responsibility for utilities between the owner and the tenant. The redetermined reasonable rent will be used in the calculation of the rent to owner from the effective date of the change. Security Deposits- The amount of security deposit established by the property owner in no instance may exceed the amount of one month s contract rent, or be in excess of amounts charged by the owner to unassisted tenants. Tenant Absence from Unit- The owner may specify in the lease a maximum period of tenant absence from the unit that is shorter than the maximum period permitted by DMMHA policy. However, the family s assistance will be terminated if the family is absent from the unit for more than 180 consecutive days. 13

14 II. PROPOSAL SUBMISSION REQUIREMENTS Proposals will be reviewed and ranked and will be subject to the selection criteria described below. The following procedures will be followed by the DMMHA in accepting and screening owner proposals submitted for the PBV Program. 2.1 Proposal Submission Deadline Proposals must be submitted to: City of Des Moines Municipal Housing Agency 2309 Euclid Avenue Des Moines, Iowa Attn. Patty Jennings Proposals and supporting documentation for proposals must be submitted prior to 5:00 p.m. on Friday, December 7,. Late applications will not be considered. Requests for clarification regarding this RFP must be submitted in writing or by to Patty Jennings at no later than 5:00 p.m. on Wednesday, November 30th,. 2.2 Proposal Format Proposals must be submitted on the forms and in the format provided by the Des Moines Municipal Housing Agency. The applicant should submit five (5) labeled, manila envelopes each containing one full set of the proposal. A full proposal will include: Completed PBV Application Copy of the Tenant Selection Criteria and Plan Copy of Tenant Occupancy Rules Description of experience owning rental housing. See Page 6, Section II.4.b. and Page 6, Section II.5.b&c of application for details. Description of experience managing and maintaining rental housing. See Page 6, Section II.6.b. of application for details. Copy of Maintenance plan or description of how units will be maintained. See Page 7, Section III.a. of application for details. Copy of Management Plan or description of unit management. See Page 7, Section III.b. of application for details. Attach if applicable, Description of City identified priority need which would be met through project basing of the proposed units. See Page 7, Section II.7. of the application to determine if applicable. Letters of Intent from agencies providing supportive services. See Page 7, Section III.c. of the PBV Application. Copy of the project s supportive services plan. See Page 7, Section III.c. of application for details. 14

15 Additional pages used as attachments to the application must be labeled with the Section number identified in the application. Attachments to the application must be assembled in the order requested in the application. 2.3 Proposal Modification and Clarification The DMMHA will not reimburse any Proposer for any costs involved in the preparation and submission of responses to this RFP or in the preparation for and attendance at subsequent interviews. Furthermore, the RFP does not obligate the DMMHA to accept or contract for any expressed or implied services. The DMMHA reserves the right to request any Proposer to clarify its proposal or to supply any additional material deemed necessary to assist in the evaluation of the Proposer. 2.4 Notification of Withdrawal Proposals may be modified or withdrawn prior to the date and time specified for proposal submission by written request. 2.5 Application Content The application will ask for information on the following topics: Owner Name Unit type of proposal- existing, newly constructed, or rehabilitated units Number, type and size of units Quality and location of units Utility Responsibility Other forms of assistance received Requested Contract term Handicapped accessibility features Owner experience with rental housing Unit and neighborhood amenities Intended resident population Tenant selection criteria and plan Rent and Occupancy status Affordability restrictions Need for PBV assistance Management and Maintenance information Service providers, if applicable References 2.6 Initial Proposal Review The DMMHA will review all applications. The DMMHA will determine whether each application is responsive to and in compliance with the DMMHA s written selection criteria and procedures, and in conformity with HUD program regulations and requirements, including but not limited to, the following items: Property meets eligibility requirements under 24 CFR & 24 CFR (Ineligible Properties- see Section 1.1 of this RFP), 24 CFR (Site and Neighborhood Standards- see Section 1.3). and 24 CFR (Other Federal requirements). 15

16 Project meets income mixing cap requirements (see Section 1.2 of this RFP) Proposed initial gross rents must be within 110% of the current Fair Market Rent for the size of the unit. (Rent to Owner see Section 1.7 of this RFP) Certification that the owner and other project principles are not on the U.S. General Services Administration list of parties excluded from Federal procurement and nonprocurement programs. The proposal is consistent with the goal of deconcentrating poverty and expanding housing and economic opportunities. (See Section 1.3 of this RFP) If a project application does not meet the basic eligibility requirements upon initial review as indicated above, it will be designated non-responsive. 2.7 Proposal Evaluation- Proposals that meet the above requirements set forth under Section 2.6- Initial Proposal Review, will be evaluated and ranked by the selection committee. A ranking list will be prepared according to the points awarded to each proposal. The selection committee may, at its discretion, select one or more of the proposals submitted, or none of the proposals submitted. The DMMHA reserves the right to reject any or all proposals, to waive any informalities in the RFP process, or to terminate the RFP process at any time, if deemed by the DMMHA to be in its best interest. The DMMHA reserves the right to reject and not consider any proposal that does not meet the requirements of this RFP, including but not necessarily limited to incomplete proposals and/or proposals offering alternate or non-requested services. The DMMHA shall have no obligation to compensate any applicant for any costs incurred in responding to this RFP. 2.8 Evaluation and Selection Committee Competing proposals submitted in response to this RFP shall be evaluated by an evaluation and selection committee appointed by the Director of the Des Moines Municipal Housing Agency. The evaluation and selection committee shall be composed of City of Des Moines staff members. The evaluation and selection committee will utilize the evaluation criteria and scoring methodology set forth in this RFP in making its determination as to the best proposal(s). Upon completing its evaluation and the scoring of competing proposals, the committee shall make a written report of its determination and recommendation as to the selection of the best proposal(s). The recommendation will be forwarded to the Municipal Housing Governing Board for final approval of the selection. The final approved selection report will be filed with the Procurement Administrator; and the report and Notice of Intent to Award will be provided to all competing proposers by ordinary mail, FAX or at the address shown in their proposals. 2.9 Other Proposal Evaluation Requirements Pre-selection inspections The DMMHA must inspect the proposed site before the proposal selection date to determine that the project will meet the Project Based Voucher definitions of newly constructed units and HUD site standards. Proposed sites must be inspected by DMMHA before final scoring can occur. 16

17 III. RANKING AND SELECTION CRITERIA The DMMHA will use the following to rank and select applications for the PBV Program. Each factor is comprised of several components with an associated point value. The total points awarded to an application will be an aggregate of the component subtotals. 17

18 SCORED CRITERIA FOR NEWLY CONSTRUCTED UNITS: CRITERIA MAX. POINTS AVAILABLE 1. Term of Contract Requested Community Amenities Unit Amenities Ownership Experience Management Experience Public Purpose 30 TOTAL POINTS AVAILABLE TERM OF CONTRACT REQUESTED 10 point max If requesting a ten-year contract: 10 If requesting a five to nine year contract: 7 If requesting a contract of less than five years: 5 2. COMMUNITY AMENITIES 25 point max If not a project for the elderly or disabled, site is within three miles 25 of places of significant employment, offering a range of jobs for lower income workers, and a significant health facility: If a project for the elderly or disabled, site is within 1/4 mile of 25 shopping and neighborhood services, or is within 1/4 mile of bus to these services; and is within 3 miles of a significant health facility. Supportive services provided UNIT/APT. COMPLEX AMENITIES 15 point max Unit amenities include the following: features adapted for persons with disabilities, off-street parking, laundry facilities, porches/decks, play area for children, recreational facility for children and adults, common area function room If three or more amenities: 15 If two amenities: 10 If one amenity: 5 4. OWNER EXPERIENCE 10 point max If applicant has completed 6 or more new construction or 10 rehabilitated housing projects: If applicant has completed one to five new construction or 7 rehabilitated housing projects: If applicant has 11 or more years providing rental housing (no 5 previous experience with new construction or rehabilitation): If applicant has 5 to 10 years providing rental housing (no 2 previous experience with new construction or rehabilitation): 5. MANAGEMENT EXPERIENCE 10 point max If applicant has experience managing and maintaining rental 10 housing for households participating in the Section 8 Tenant Based Voucher Program: If applicant has experience managing and maintaining rental 7 housing: If applicant has experience managing and maintaining housing: 5

19 6. PUBLIC PURPOSE 30 point max If 75% or more of units, including non-pbv units, to be restricted 15 to households at or below 30% of area median family income: If 50% to 74% of units, including non-pbv units, to be restricted 10 to households at or below 30% of area median family income: If other City-identified priority needs* will be met: (an additional) 15 * Priority needs would be those indicated in the City of Des Moines Consolidated Plan. Applicants will be asked for justification/documentation of how their projects meet priority needs. 19