Request for Proposals
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1 Request for Proposals Chatham County, North Carolina Mailing Address: P. O. Box 608, Pittsboro, NC Street Address: 12 East Street, 2nd Floor, West Wing, Pittsboro, NC27312 Phone: I. GENERAL INFORMATION Chatham County Government (the County) in Pittsboro, North Carolina, seeks proposals for developing and marketing two affordable housing units in the Briar Chapel development. All viable affordable housing management and ownership models will be considered and Developers are encouraged submit models used in other developments or suggest new ones for the Briar Chapel project. Units must be affordable individuals and families earning 80% of the Area Median Income (see Appendix A for AMI grid). The County will consider awarding additional lots for development upon successful completion and mutual agreement between the County and the Developer. As of the date of this Request for Proposals, the County anticipates having approximately 60 affordable housing lots available for development during the multi-year buildout of the Briar Chapel community. The County will convey the affordable housing lots in Briar Chapel the Developer by limited warranty deed, with restrictions. Once the deed has been recorded, the Developer will be responsible for all fees associated with the lot, including property taxes, HOA (Home Owners Association) dues, water and sewer, etc. (see Appendix C for an example of the fees and the responsible parties; the Developer is responsible for determining the actual fees that apply the lots). The Developer is responsible for building the units within a specified time frame (see section VI. Proposal Schedule for specific dates); marketing and selling the units a qualified buyer; and ensuring the long-term affordability of the unit. The Developer must have sufficient knowledge of available affordable housing subsidies educate the buyer, facilitate financing, and aid the buyer during the purchasing process. Once the unit is sold the Developer is responsible for ensuring that the unit remains affordable in perpetuity. 1
2 II. PROJECT GUIDELINES A. The County will supply the Developer with single-family home lots 447 and 160. (see Appendix B for a map of Briar Chapel). B. Developers must use a builder approved by Briar Chapel (see Appendix D). C. The Developer must build a System Vision certified home and apply the net savings from the NCHFA grant decrease the tal construction costs of the home. D. Ideally, Developers should use non-vinyl, non- carpet floor coverings. The preferred types of flooring are hardwood, natural linoleum, ceramic tile, bamboo, cork, etc. E. Units must include a washer, dryer, dishwasher, refrigerar and a sve. F. Units must meet Briar Chapel s building standards and the exterior finishes must be indistinguishable from market rate homes. G. Briar Chapel reserves the right prohibit any subcontracrs in violation of Briar Chapel standards. H. Priority will be given qualified Chatham County residents and workers. III. DEVELOPER RESPONSIBILITIES The Developer s responsibilities include: A. Securing financing construct affordable housing units. B. Overseeing a Briar Chapel approved builder construct the units (see Appendix D). C. Marketing homes Chatham residents and workers who earn less than 80% AMI (see Appendix A). D. Educating potential homeowners about homeownership and financing options and subsidies. Provide first-time homebuyer education classes. E. Walking approved buyer through the purchasing process and applying for subsidies. F. Working with potential homeowners complete the application form and obtain financing. G. Communicating regularly and clearly with Chatham County and Briar Chapel staff. H. Providing monthly reports Chatham County staff. 2
3 I. Ensuring compliance with Briar Chapel building and community standards. J. Continuing follow-up, education and oversight of home owner. K. Providing a plan for ensuring that affordable units continue be affordable when the original home owner moves out through managing the deed restrictions and maintaining a database of affordable units in Chatham County. Ensuring homes are sold using an approved resale formula. L. Presenting an annual report the Chatham County Board of Commissioners on the status of completed units in Briar Chapel. The report should include the number of units completed, number of units occupied/unoccupied. IV. ELIGIBLE APPLICANTS For profit and non-profit Developers are eligible participate. V. PROPOSAL INSTRUCTIONS A. Proposal Deadline: Must be received by Chatham County no later than Wednesday, July 13, 2011, 4:00 p.m. EST. B. Submission of Proposals: Hard Copies: Four hard copies with all attachments, including signary pages and electronic file, must be received by the deadline above and sent one of these addresses: a) Postal Address: Robin James, Chatham Co. Finance Office, P. O. Box 608, Pittsboro, NC b) Street Address: Chatham Co. Finance Office, Courthouse Annex, 12 East Street, Pittsboro, NC Electronic Copy: Respondents should send either a PDF file of the proposal (excluding any materials that are non-electronic and require signatures) by the deadline above robin.james@chathamnc.org, or include an electronic version on media with your hard copy submission. 3
4 Both parts of the submittal must be received by the stated deadline be considered responsive. Late proposals will not be accepted under any circumstance and will not be opened or reviewed. The sender must allow ample delivery time for the selected shipment or transmission methods. C. Developer Certification The submitted proposal shall be deemed a representation and certification that the proposing Developer fully understands the information provided by Chatham County in this document; is financially solvent and able successfully undertake and complete the work; represents that all of the information contained in the submitted proposal is true and correct; did not in any way collude or conspire with any other parties, directly or indirectly, related this proposal; acknowledges that Chatham County has the right make any inquiry it deems appropriate substantiate or supplement proposal information; and acknowledges that a proposal cannot be modified after submission for any reason. D. County Conditions All proposing firms or individuals shall comply with all conditions, requirements, and specifications contained herein, with any departure constituting sufficient cause for rejection of the proposal. However, Chatham County reserves the right change the conditions, requirements and specifications as it deems necessary. The proposal must be signed by a duly authorized official of the organization or individual submitting the proposal. No proposals will be accepted from any person or organization that is in arrears for any obligation Chatham County, or that otherwise may be deemed irresponsible or unresponsive by County staff or the Chatham County Board of Commissioners. Chatham County is not obligated enter in any contract as a result of the invitation. Information stated within and conditions of the proposals must be firm through the duration of the initial contract. 4
5 Chatham County reserves the right reject any and all proposals or any part thereof and select the most responsive proposal that is deemed in the best interest of Chatham County. Multiple proposals may be accepted and awarded. Chatham County reserves the right negotiate with any, none or all of the proposing Developers. Chatham County reserves the right enter in an agreement with another proposing Developer in the event that the originally selected Developer fails execute a contract with the County or defaults on their contract. All proposals shall be prepared in a comprehensive manner as content, but we do not require specific types of binders or promotional material for submissions. Promotional material, with the exception of material needed for the completion of the application, will not be considered part of the proposal and will not affect the evaluation of proposals. All costs, including travel and expenses, incurred in the preparation of this proposal will be borne solely by the proposing Developer. The County will not return proposal materials those submitting proposals. No agreements with any selected Developer shall be binding until a contract is signed and executed by the Board of Commissioners or a Chatham County representative and authorized representatives of the Developer. VI. PROPOSAL SCHEDULE The deadline for receipt of proposals Wed, July 13, :00 PM County is expected select a Developer by Tues., Aug 2, 2011 Projected date begin construction Within 100 days of completed contract 5
6 VII. PROPOSAL CONTENTS All proposals should include the following items in this order: Section 1 Cover Letter The cover letter should include a summary of the Developer s ability and willingness perform the duties outlined in the General Information section. The letter must be signed by a person authorized enter in a contract with Chatham County. Section 2 Developer Information & Signature Form The Developer form is provided as Exhibit 1 and should be completed and signed by the person with authority approve contracts with Chatham County. Section 3 Organizational and Financial Capacity Provide a brief description of the proposing Developer s organization, financial capacity and stability, a copy of the most recent audit report and information on any lawsuits pending or within the past five years, including any settlements paid by the proposing Developer or its insurers. Section 4 Organizational Qualifications and Relevant Experience A description of the proposing Developer s 1) past and current workforce housing projects (include phos, start and finish dates, and occupancy/vacancies rates), 2)project staffs job descriptions and qualifications, 3)a list of other local government clients that have used the Developer s services, and 4) a list of lenders or funding sources who have provided financing. Please include information about green building techniques used or green building certifications received, such as System Vision, Energy Star, etc. The ability achieve the System Vision standards and any additional green building features, which reduce the loan amount or 6
7 tal monthly costs the homeowner, should be noted. Explain any lawsuits by clients and the current status or outcomes and include a copy of the organization s most recent audit. Section 5 Affordability A. Explanation of estimated tal and monthly housing costs home buyer. Developer must show that the proposed unit is affordable and meets the AMI requirement. (see Appendix C for an example list of fees). Show tal development cost analysis including: Total construction (estimated $144,000 +/-10% for a three bedroom single family home) Development fee Financing fees and carrying costs Water/sewer connection fee Other fees Estimated subsidy and source of subsidy Down payment required (if any) Estimated monthly principal, interest, taxes and insurance costs Other monthly fees, such as HOA dues, estimated monthly utilities, service area costs, etc. Once the lots are deeded the Developer, the Developer assumes all responsibilities for cost and fees, such as HOA, property taxes, etc. Impact fees ($3500) paid by the Developer will be reimbursed by the County and the recording fee for the limited warranty deed between the County and the Developer will be paid by the County. 7
8 Section 6 Marketing Resources If available, please provide sample marketing material from previous developments. Discuss the types of marketing strategies your organization would perform. Briefly outline the application process and include a sample application form. Section 7 Long-term Management Discussion of how the Developer will ensure that units remain affordable in perpetuity and an explanation of the resale formula. Section 8 Proposal Exceptions This should include any exceptions or requested changes that the Developer has the proposals conditions and requirements. If none noted, it is assumed that the Developer will accept all conditions and requirements identified by this document. VIII. EVALUATION OF PROPOSALS Chatham County will evaluate proposals based on the following grid: Criteria Description Points Organizational capacity Ability fully complete the project by the deadline 15 Financial capacity Ability obtain construction financing and pay fees 15 Organizational qualifications Staff experience developing workforce housing 10 Past experience Quality and occupancy of previously built units 15 Affordability Total and monthly cost homeowner, include a 20 breakdown of all costs Green building techniques Past experience with green building techniques and 5 estimated reduction in tal or monthly costs buyer Marketing materials Quality of marketing material and plan 10 Long-term management Ability maintain affordable housing units over the long-term 8 10
9 IX. CONTRACT & FEE STRUCTURE If awarded, the selected Developer will enter in a development agreement with the County. Developer is responsible for all fees related the development of the affordable housing units. These fees include, but are not limited, building permits, water and sewer, property tax, HOA, etc. (see Appendix C for an example list of fees). X. INSURANCE REQUIREMENTS Chatham County requires selected contracrs and any subcontracrs obtain and maintain at their own expense all insurance required by state and federal law. If requested, the selected organization agrees provide Chatham County with evidence of required policies, certificates and/or endorsements upon the award of the contract. As a minimum, contracrs and subcontracrs are required have the following coverage related any contract work for Chatham County: Coverage Worker s Compensation Minimum Limits Statury Limits Comprehensive General Liability $1,000,000 Aumobile Liability $250,000/$100,000 Professional Liability $1,000,000 The County shall be named as an additional insured on the professional liability and comprehensive general liability coverage. Contracr shall furnish copies of all such policies and all renewals, terminations and alterations the County on a current basis. 9
10 XI. FOLLOWUP CONTACT Chatham County may choose contact proposing firms clarify information in their proposals and seek additional information. This is expected occur between July 15-27, XII. PUBLIC NATURE OF PROPOSALS Responses the RFP become the exclusive property of Chatham County and a matter of public record after an award(s), with the exception of any elements identified in proposals as business or trade secrets and clearly marked as Confidential or Proprietary. Chatham County is not in any way liable or responsible for disclosure of proposal materials or information if they are not clearly marked as Confidential or Proprietary or if their disclosure is required under state laws concerning public records. If major portions of the proposal are classified by the proposing Developer as Confidential or Proprietary, the proposal shall be considered non-responsive. Chatham County has the right disapprove that certain parts of the proposal are Confidential or Proprietary and provide notice proposing organizations of this disapproval so that the proposing organization can seek clarification from the legal system concerning laws related public records. XIII. COLLUSION By submitting a proposal, the Developer represents and warrants that the proposal is genuine and not collusive, was not made in the interest of or on behalf of any person not named in the proposal. The proposing organization also verifies through its submitted proposal that it has not directly induced or solicited any other person submit a false proposal, prevented any other person from submitting a proposal, or has not in any way colluded secure improper advantage over any other person or organization submitting a proposal. 10
11 XIV. DISQUALIFICATION Facrs such as, but not limited, those listed below may be considered just cause for disqualification of any proposal without further consideration: Evidence of collusion, directly or indirectly, among proposing organizations or individuals with regard the amount, terms or conditions of submitted proposals; Any attempt improperly influence the County selection process; The existence of any lawsuits, unresolved contractual claims or disputes between the proposing organization and Chatham County; Evidence of incorrect information submitted as part of any proposal; Evidence of the proposing organization s inability successfully complete its obligations and responsibilities stated in the proposal; and Default of the proposing organization under any previous agreement with Chatham County, which results or resulted in termination of the agreement. Chatham County reserves the right reject any and all proposals or any part thereof. XV. NON-CONFORMING All proposals must be prepared and submitted in accordance with provisions in this invitation. Any alteration, omission, addition, variance or limitation of a proposal may be grounds for non-acceptance of the proposal, at the sole discretion of the County. XVI. GRATUITIES No person shall offer, give or agree give any Chatham County employee, elected official or agent of the County any gratuity in connection with the award of any contract by Chatham County related this invitation. No Chatham County employee, elected official or agent of the County shall solicit, demand, accept or agree accept from any other person or organization a gratuity in connection with this invitation. 11
12 XVII. QUESTIONS Please direct all questions Robin James at , or Questions should be submitted no later than Thursday, July 7, 2011, 5:00 pm EST. XVIII. NOTIFICATION A. The selected Developer will work with the County s Finance Office in developing, marketing and managing two affordable housing units in Briar Chapel. The selected Developer will be notified by Aug. 2,
13 EXHIBIT 1 DEVELOPER INFORMATION & SIGNATURE FORM Developer Name Trade License # Contact Person(s) Street Address with City, State & Zip Code Mailing Address (if different than above) Phone # Fax # Proposer will do the work as: Individual Joint Venture Partnership Corporation Date & state of incorporation Name of partnership or joint venture Date State By signing below, the submission of a proposal shall be deemed a representation and certification by the Proposing Developer that it has investigated all aspects of the invitation for proposals, that it is aware of the applicable facts pertaining the invitation process, its procedures and requirements, and has read and understand the invitation. No request for modification of the proposal shall be considered after its submission on the grounds that the Proposing Developer was not fully informed as any fact or condition. Authorized Signature: Date Signed: Title of Signary: 13
14 Appendix A Affordability Grid *Note: HUD s AMI guidelines are subject change. Number of persons in your household 1 person 2 people 3 people 4 people 5 people 6 people 7 people 8 people 30% AMI $14,250 $14,251 $16,300 50% AMI $14,251 $23,750 80% AMI $23,751 $38,000 $23,751 $27,150 $38,001 $43,400 $16,301 $18,350 $27,151 $30,550 $43,401 $48,850 $18,351 $20,350 $30,551 $33,900 $48,851 $54,250 $20,351 $22,000 $33,901 $36,650 $54,251 $58,600 $22,001 $23,650 $36,651 $39,350 $58,601 $62,950 $23,651 $25,250 $39,351 $42,050 $62,951 $67,300 $25,251 $26,900 $42,051 $44,750 $67,301 $71,650 14
15 Appendix B Affordable Housing lots available in Briar Chapel (circled in red) Appendix C (as of ) Fees 15
16 The following is a list of fees for which the Developer and buyer may be responsible. There may be additional fees and the fees shown below may change without notice and new fees may be imposed. It is the responsibility of the Developer pay all fees and communicate clearly with the homeowner about the fees they are responsible for. Cost/Fee Description Amount Responsible Party Contribution Working Capital of Association One-time fee for Community Association, paid at the closing of new home sale 1/6 of the full General Assessment for the year in which the sale of the home on a property closes Developer or home buyer New Owner Set-up Fee One-time fee of $25 setup the new owner s account with the Property Manager (CAMS) One-time fee of $25 Developer or home buyer Community Association Assessments (sometimes known as Homeowners' Assessments) Annual assessment due as of January 1 st, but Board permits payment in monthly installments Amount determined in accordance with annual budget adopted pursuant Declaration, subject membership ve right Currently, $1140 per year or $95 per month Homeowner Special Assessments in such amount as approved from time time by majority vote of lot owners who are subject such assessment, fund unbudgeted expenses or expenses in excess of budget As needed and approved Special Assessments for: (1) per unit charges incurred by Association for telecommunication services and any other services (non currently) provided all completed homes pursuant bulk services agreement between Association and service provider: As applicable 16
17 (2) optional services provided by Association lot at request of owner; and (3) cost reimbursements and monetary fines association with violation of governing documents by owner or occupant Use and Consumption Fees If established, will be charged only residents who elect participate in event/activity or use facility for which fee is charged None Homeowner at time of use or participation Resale Certificate Fee Association Certificate as payment status of assessments levied by Briar Chapel Community Association. $74 Homeowner Service Area Fee Maintenance fee for wnhomes, duplexes and other areas, as designated by Briar Chapel $95 (this is in addition the base $95 monthly HOA fee for the home-a wnhome owner would pay a tal of $190, at this time) Homeowner Telecommunity Fee Community Covenant authorizes Community Council charge connection fee and separate periodic fees for connection Telecommunity System (cable, television, high speed data/internet/intranet and security moniring services); will only apply if Granr assigns Community Council its reserved rights design, install and operate a Telecommunity System Currently, not applicable. If applicable, there will be a connection fee and periodic service fees Homeowner 17
18 Briar Chapel Utilities, LLC Utility fee, as approved by the NC Utilities Commission $45/ month Developer, payable when service the lot is requested Sewer Facilities Fee Connection sewer system $1,500 (subject change by the utility company) Developer, payable when service the lot is requested Water Facilities Fee Connection the water system $3,500 (subject change by the utility company) Developer, payable when service the lot is requested Street Tree Assessment Fee plant trees on the lot $300 per tree Developer Sidewalks School Impact Fee Due Briar Chapel at closing of a new home Fee provide for school capital projects Amount based on lot size Homeowner $3,500 - reimbursable Owner Chatham County at the time Developer obtains a building permit Builder Identification Sign Fee Developer identification signs that are purchased through Briar Chapel Varies Developer Street Cleaning Fee Street cleaning Varies pro rata Developer or homeowner Utility Connection Fees and Deposits Determined by Chatham County or utility provider; subject change Varies Developer at the time of connections Homeowner deposit paid upon account creation Grinder Pump Installation Fees For lots requiring a grinder pump Determined by owner of waste water treatment facility Homeowner Appendix D Briar Chapel list of Approved Builders McNeill Burbank Homes 18
19 David Weekley Homes Homes by Dickerson M/I Homes MorningStar Homes Cusm Builder Group 19
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