FORT COLLINS HOUSING AUTHORITY 2016 RFP for Real Estate Services RFP. Request for Proposal for Real Estate Services. July 21, 2016.

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1 RFP Request for Proposal for Real Estate Services July 21, 2016 Page 1

2 1. Overview The Fort Collins Housing Authority (FCHA) is requesting proposals from Colorado licensed real estate brokers/firms to assist FCHA in the marketing strategy and phased sale of 154 scattered site residential units (on 75 properties), located throughout the City of Fort Collins. The properties may be divided into groups based on geographic location in Fort Collins (see Exhibit A) or grouped together to attract the most investment interest. FCHA will select a real estate firm/brokerage firm based on several criteria. Responses to this Request for Proposals are due to FCHA no later than August 15, See section 7 for complete submittal process and requirements. 2. The Fort Collins Housing Authority (FCHA) Fort Collins Housing Authority (FCHA) is the largest affordable housing developer and property management company in Fort Collins, and one of the top performing housing authorities in the country. FCHA owns over 1,000 housing units and assists over 2,100 households with rent assistance and support, helping more than 5,200 individuals through innovative, award winning affordable housing and programs. FCHA was formed as a quasi governmental entity under state enabling legislation in FCHA is governed by a Board of Commissioners appointed by the Fort Collins City Council, but it is a separate entity from the City of Fort Collins with its own funding mechanisms. FCHA secures public and private sector funds (federal, state and local) to develop, manage and administer affordable housing programs for individuals and families in Fort Collins. Through intergovernmental agreements, FCHA administers programs for the Larimer County Housing Authority and the Wellington Housing Authority. FCHA also provides program and property management for Villages, Ltd. FCHA serves families, seniors, and people with special needs with the full spectrum of affordable housing, including supportive housing for formerly homeless people, a range of affordable rentals, and homeownership opportunities. Our Core Values Teamwork: We work collaboratively and as a team, seeking the input of those who are affected by our work, internally and externally, and partner with like minded groups to achieve our mission. Fun: We strive to create a healthy and fun work environment for our employees, and we reflect that in our interactions with our residents, board members, investors, partners, and with each other. Compassion: We are compassionate about those we work to serve, serving as advocates on their behalf. We support programs, policies and groups that create opportunities for them to create positive change in their lives. Page 2

3 Honesty: We value honesty and maintain high ethical standards in every aspect of our business. Accountability: We are accountable for the quality of our job performance and the responsible management of the resources in our care. Our Business Objective To achieve this mission, all FCHA functions are operated with attention paid to a triple bottom line: Maintaining the fiscal viability of the organization. Achieving a social goal through the provision of affordable housing and supportive services. Achieving environmental sustainability. Additional background information can be found at FCHA s website at ww.fchousing.org 3. Disposition of Public Housing Homes After extensive consultation and examination of various options, FCHA has determined it is in the best interest of its participants and the fiscal health of FCHA to sell its scattered site public housing properties utilizing HUD s Rental Assistance Demonstration (RAD) Program. The current households will be transferred to either an existing or new FCHA development and the units will be sold once vacated. FCHA intends to utilize sales proceeds to build or rehabilitate additional affordable housing properties in Fort Collins, in conjunction with Low Income Housing Tax Credits. In May 2015 FCHA received approval from HUD for the conversion of the first portion (84 units) of the public housing portfolio. The first projects include: Project # of Public Housing/ RAD units Status A 13 Residents to be transferred to FCHA s Village on Redwood, currently under construction with completion Feb 2017 B 52 Residents to be transferred to Village on Shields, currently owned by FCHA and will undergo major rehabilitation in C 19 Residents to be transferred to Village on Horsetooth, currently undergoing entitlements with construction completion planned for Spring 2018 TOTAL 84 Expected Time of Sale March - May 2017 Feb-Aug 2018 March - June 2018 Page 3

4 HUD must authorize the release of the Deed of Trust (DOT) that currently exists on each public housing property prior to the sale. Upon the release of the DOT, FCHA may move forward with the sale of the property without HUD restrictions on sale prices or sale transactions. FCHA has set expectations for sales proceeds based on current market and appraised values. The selected real estate team must be committed to determining how to maximize sale proceeds for each RAD unit. The current residents will be notified and transferred prior to the sale so that each unit is vacant for the marketing and sale. FCHA is currently considering retaining two public housing properties (29 units). This would include converting the funding mechanisms of these two properties and transferring ownership structure with current residents in place. If FCHA retains these two properties, it would reduce the total number units to be sold by the real estate team down to 125. The 29 units contemplated are not part of the first 84 units that have been approved. 4. Proposal Purpose The purpose of this request is to gain expert assistance in all phases of the sale of real property. The primary objectives for these services are to: Develop timeline and strategy for marketing/sale of units. Market properties for maximum disposition price. Optimize sale proceeds to FCHA. Represent FCHA in real estate transactions. Advise FCHA on real estate tactics related to phasing and grouping. 5. Scope of Work The selected Real Estate Broker/Firm will be expected to perform the following services: Advise FCHA of any suggested strategies that would enhance the Broker s ability to market the property and improve FCHA s net sales revenue. Develop a comprehensive marketing strategy for a particular group of properties to achieve FCHA s objectives. Represent FCHA in real estate transactions as a Seller s Agent. Facilitate Buyer s due diligence inspections. Advise FCHA on issues that arise between the Buyer and FCHA, and other duties customarily provided by a full service Real Estate Broker/Firm. Adhere to all federal, state and local laws, as well as all Colorado real estate laws and practices. FCHA reserves the right to enter into contracts with more than one Broker/Firm. The properties may be divided into groups based on geographic location in Fort Collins or the groups may be determined by project timing. FCHA will select a Real Estate Firm/Broker for each group of properties based on several criteria. Each applicant may bid on one, several, or all groups of properties. An applicant may not choose some properties within a group and not others. A Broker/Firm may be awarded more than one group. Page 4

5 6. Pre Proposal Meeting A pre proposal meeting will be held at FCHA s office located at 1715 W Mountain Ave, Fort Collins, CO on August 2nd at 10 a.m. The meeting is intended to help clarify the technical aspects of the solicitation and provide answers and project information for prospective respondents. Attendance is not mandatory but is strongly encouraged. Please RSVP to Kristin Fritz, kfritz@fcgov.com. Meeting minutes will be made available to all attendees and posted on the FCHA website. It is the responsibility of prospective respondents to visit FCHA s website to locate posted updates. Verbal explanations or instructions given will not be binding. 7. Submittal Process and Requirements Please submit one original copy and one electronic copy of proposal by the close of business August 15, Fort Collins Housing Authority 1715 W Mountain Avenue Fort Collins, CO Attn: Kristin Fritz Please include contact information with your submission. Completed proposals must include the following information: To facilitate evaluation, proposals should address and be organized in the order of the outline given below and include the following information. The format for responses in each section is not specified. A. Broker Qualifications: (Relates to Evaluation Criterion 1) Proposals shall describe the Broker s (and all key team members) qualifications, including information demonstrating the following: Broker has an active and current, unsuspended license as a Real Estate Broker in the State of Colorado. Supervising/Firm Broker has a minimum of five years of current experience in selling residential properties in Fort Collins, Colorado, including single family and multifamily properties, with at least two years experience as a real estate agent. Broker s knowledge of the Fort Collins residential real estate market, current land values, prevailing rents and particular areas of specialization, e.g., neighborhoods or types of property. Page 5

6 Broker s experience in the particular geographic area for which you are applying. (See Exhibit A for groups ). Ability to successfully sell residential properties that have been owned and maintained as rental properties. Capacity to conduct effective marketing of the properties, including production and distribution of materials and use of appropriate communication tools. Skills in negotiation and market/financial analysis. A copy of the Broker s resume and licensure, and a copy of the resume and licensure of any other key team members. Broker s experience working with government agencies, non profit housing providers, or public private partnerships in selling residential properties (Housing Authorities), if any. Broker s experience with first time home buyers. Broker is able to list any and all properties on the Multiple Listing Service. Broker s involvement in the Fort Collins community. B. Project Management Plan (Relates to Evaluation Criterion 2) Provide a project management plan that addresses the company s overall approach, including tasks necessary to complete scope of work. Each item identified in Section 5, Scope of Work, should be addressed. Based on the past year s (2015) performance, please provide the average days on market for properties you listed (one average figure for all properties). We understand that market conditions have played a significant role in this statistic. C. Fee and Commission (Relates to Evaluation Criterion 3) Proposals shall describe in detail the Broker s complete fee structure for performing the Scope of Work outlined in Section 5, and the proposed commission for selling the properties listed in Exhibit A. Brokers may submit different fee structures based on different sale groups. D. References (Relates to Evaluation Criterion 4) Provide the name, address, phone number and for a minimum of three references with which you have done similar work. The Firm/Broker may provide three references for the entire team. Any company/team selected for final consideration will be required to provide evidence of the following: Professional registration/certification, if required Proof of insurance coverage Page 6

7 8. Selection Process and Evaluation Criteria Proposals will be reviewed by a team of Housing Authority staff, and candidates selected for final consideration will be interviewed. A final selection will be made no later than September 26, The primary criteria for evaluation are each assigned a point value based on relative importance. These criteria include: Evaluation Criteria Weighting (Max. Points) 1. Broker's qualifications (including other proposed key team members and agents, if any) Broker's proposed plan ( Narrative ) for implementation of Scope of Work Proposed fee structure and commissions that are most advantageous to FCHA will receive the most points References: Quality and direct applicability. 10 Maximum Total Points Costs The issuance of this solicitation does not obligate FCHA to pay any costs incurred by any respondent in connection with: Preparation and presentation of an offer Any supplement or modification of this solicitation Negotiation with FCHA or other parties arising out of or relating to this solicitation or the subject matter of this solicitation 10. Attachments The following attachments are included with this Request for Qualifications: Exhibit A: Describes properties to be disposed Exhibit B: RAD Program Overview 11. Award of Contract The Fort Collins Housing Authority reserves the right to make as many awards as it deems appropriate. Notwithstanding any other provision of the RFP, the Fort Collins Housing Authority reserves the right to: Waive any immaterial defect or informality, or Reject any or all bids or proposals, or portions thereof, or Reissue the RFP Page 7

8 Proposed Timeline Released July 22, 2016 Pre Proposal Meeting at FCHA Aug 2, 2016 Pre Proposal Meeting Minutes Posted Aug 5, 2016 Response Deadline Aug 15, 1:00pm MST Short List Announced Aug 19, 2016 Interviews/Final Selection Aug 22, 2016 Execute Contract Sept 1, 2016 Page 8

9 Exhibit A 84 Properties for Disposition Most properties listed are currently occupied and prospective respondents shall not trespass on these properties, take pictures of the properties or contact the residents of the properties or their neighbors. Please contact Kristin Fritz at FCHA if you have a requirement to visit properties. The 84 properties are divided into three groups as follows, based on the future projects they are associated with. FCHA will select a Real Estate Firm/Broker for each group of properties. Each applicant may bid to list and market one, several, or all groups of properties. An applicant may not choose some properties within a group and not others. A Broker/Firm may be awarded more than one group. Properties being transferred and sold for Project A (13) # Street Beds Type 707 S BRYAN 2 SFH 1707 PALM DR #A 2 4-plex 1707 PALM DR #B PALM DR #C PALM DR #D PALM DR #A 2 4-plex 1713 PALM DR #B PALM DR #C PALM DR #D WEST ST 2 Duplex 518 WEST ST WHEDBEE #A 3 Duplex 306 WHEDBEE #B 3 Page 9

10 Properties being transferred and sold for Project B (52): # Street Beds Type 1107 EMIGH 2 4-plex EMIGH EMIGH EMIGH ERIN COURT #1 2 4-plex 1709 ERIN COURT # ERIN COURT # ERIN COURT # GALLUP RD 3 SFH 820 GALLUP RD 3 SFH 821 GALLUP RD 4 SFH 1012 GARFIELD 2 Duplex 1014 GARFIELD GARFIELD 2 Duplex 1018 GARFIELD S GRANT 2 Duplex S GRANT GARFIELD 2 Duplex 1022 GARFIELD MATHEWS #A 2 Duplex 701 MATHEWS #B MONTGOMERY #A 3 4-plex 1206 MONTGOMERY #B MONTGOMERY #C MONTGOMERY #D 2 Page W MULBERRY 2 Duplex W MULBERRY 2

11 Properties being transferred and sold for Project B (52) continued: 519 E MULBERRY 2 SFH 227 WEST ST 2 SFH 513 PARK ST 2 Duplex 515 PARK ST PARK ST 2 Duplex 519 PARK ST PECAN 2 Triplex 1962 PECAN PECAN E PITKIN #1 2 4-plex 1652 E PITKIN # E PITKIN # E PITKIN # E PITKIN #A 2 4-plex 1648 E PITKIN #B E PITKIN #C E PITKIN #D E PLUM #A 2 Duplex 411 E PLUM #B RAMS LANE 2 Duplex 2918 RAMS LANE RAMS LANE 2 Duplex 2926 RAMS LANE STANFORD 2 Duplex 2603 STANFORD 2 Page 11

12 Properties being sold for Project C (19): # Street Beds Type 1720 AZALEA #1 3 8-plex 1720 AZALEA # AZALEA # AZALEA # AZALEA # AZALEA # AZALEA # AZALEA # ERIN COURT #1 2 4-plex 1713 ERIN COURT # ERIN COURT # ERIN COURT # N WHITCOMB 3 SFH 809 GALLUP 3 SFH 804 ROCKY RD 3 SFH 805 ROCKY RD 3 SFH 501 LAPORTE 3 Duplex 503 LAPORTE WOOD ST 2 SFH Page 12

13 RAD Program Details What is RAD? What is RAD? The Rental Assistance Demonstration (RAD) allows public housing agencies (PHAs) and owners of HUD assisted properties to convert units to project based Section 8 programs, providing an opportunity to invest billions into properties at risk of being lost from the nation s affordable housing inventory. RAD 1st component transactions cover Public Housing units as well as Section 8 Moderate Rehabilitation projects. Units that fall under this component are subject to a unit cap and are limited to current funding. RAD 2nd component transactions cover Rent Supplement (Rent Supp), Rental Assistance Payments (RAP), and Section 8 Moderate Rehabilitation projects. Unlike 1st component transactions, 2nd component transactions are not subject to the cap, but are constrained by the availability of tenant protection vouchers (TPVs). Both components allow housing programs to convert their assistance to long term, project based Section 8 contracts, providing a more stable source of funding. The 1.2 million units in the Public Housing program have a documented capital needs backlog of nearly $26 billion. As a result, the public housing inventory has been losing an average of 10,000 units annually through demolitions and dispositions. Meanwhile, the 38,000 units assisted under HUD s legacy programs are ineligible to renew their contracts on terms that favor modernization and long term preservation. The current conditions of many of these properties inhibit investment and recapitalization efforts in the communities with the most need. By drawing on an established industry of lenders, owners and stakeholders, RAD allows PHAs and owners of HUD assisted housing to preserve and improve affordable housing units that could be subject to vouchers and demolition. RAD creates greater funding certainty while allowing increased operational flexibility to empower PHAs and owners to serve their communities. As a result of the FY2015 appropriations bill, HUD has the statutory authority to convert up to 185,000 units through RAD s first component, representing a significant increase from the program s initial 60,000 unit cap. The additional authority will widen program participation, enabling more PHAs and HUD assisted property owners to ensure access to quality, affordable housing for our nation s low income families. Page 13