REQUEST FOR PROPOSAL DEVELOPER SERVICES FOR THE SINGLE FAMILY RESIDENTIAL BLIGHT ABATEMENT PROGRAM NOVEMBER 8, 2013

Transcription

1 REQUEST FOR PROPOSAL DEVELOPER SERVICES FOR THE SINGLE FAMILY RESIDENTIAL BLIGHT ABATEMENT PROGRAM NOVEMBER 8, 2013 Tacoma Community Redevelopment Authority City of Tacoma Community and Economic Development 747 Market Street Room 836 Tacoma, WA Office: Fax:

2 Contents I. INTRODUCTION... 1 a) Background... 1 b) Purpose of RFP... 2 c) Period of Contract... 2 d) Eligible Proposers... 3 e) Questions... 3 f) Deadline... 4 II. RFP TIMELINE... 5 III. RFP CONDITIONS... 5 a) Contingencies... 5 b) Modifications... 5 c) Proposal Submission... 5 d) Incurred Costs... 5 e) Negotiations... 6 f) Acceptance or Rejection of Proposals... 6 g) Formal Agreement... 6 h) Final Authority... 6 VI. SCOPE OF PROGRAM... 6 a) PROGRAM: The Single Family Residential Blight Abatement Program (the Program )... 6 b) Program Functions... 7 Unit Sale Price... 9 V. PROPOSAL SUBMISSION a) Threshold Requirements b) Proposal Contents c) Submission Requirements VI. PROPOSAL EVALUATION AND SELECTION a) Criteria Overview VII. APPLICATION PROCESS a) Review Process... 18

3 EXHIBITS EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E EXHIBIT F EXHIBIT G EXHIBIT H EXHIBIT I EXHIBIT J EXHIBIT K SAMPLE PROPERTY PROFILE DEVELOPMENT PROFORMA Worksheet 1 Rehabilitation Scope Worksheet 2 Total Development Cost Pro Forma Worksheet 3 Sources and Uses MINIMUM BUILDING STANDARDS BROCHURE TEMPLATE AFFIRMATIVE MARKETING GUIDELINES INSURANCE CERTIFICATE REQUIREMENTS CERTIFICATION STATEMENT PRO FORMA INSTRUCTIONS PROJECT TIMELINE COMMITMENT TO USING GREEN BUILDING METHODS GREEN REMODELER CHECKLIST

4 Page1 I. INTRODUCTION a) Background In its efforts to meet the City of Tacoma s (City) current and future housing needs, the Tacoma Community Redevelopment Authority (TCRA) adheres to the primary goals and objectives of the City s Five-Year Consolidated Plan: 1. Provide decent housing for all residents of the community through ongoing support of a continuum of housing opportunities; 2. Provide a suitable living environment through maintenance and improvement of existing neighborhoods, addressing service deficiencies and implementing the City s growth and development concepts; and 3. Expand economic opportunities by strengthening the downtown and making neighborhoods more livable for its residents, and through creation and retention of employment opportunities, especially for low and moderate income persons. In addition to these Consolidated Plan goals, the TCRA is interested in addressing the following objectives as it relates to the rehabilitation of the City s existing single family housing stock: 1. Provide TCRA resources in an effective and efficient manner wherein the City can have a more significant impact in various neighborhoods by addressing life safety issues primarily as a function of single family rehabilitation on an annual basis. 2. Allow for the timely and consistent expenditure of TCRA funds and completion of the rehabilitation of a set number of homes within a program year cycle. 3. Seek capable local development partners to complete these projects through a third party contract. 4. Focus TCRA staff on their core competencies which include contract development and administration and insuring the program adheres to all federal, state and local regulatory requirements. Single-family homeownership and neighborhood revitalization is a key component of the TCRA s overall Strategy. Presently, the TCRA maintains an Affordable Housing Fund (AHF) designed to enhance residential neighborhoods and promote home ownership. The AHF is capitalized through an annual allocation of Community Development Block Grant (CDGB) and HOME Investment Partnership Program (HOME) funds. Both of these sources are awarded to

5 Page2 the City based on a formula allocation from the U.S. Department of Housing and Urban Development (HUD). b) Purpose of RFP The purpose of this RFP is to select a small pool of qualified firms and/or organizations to act as Developer and who will acquire, manage, maintain, rehabilitate and resell previously foreclosed and abandoned single-family residences (Sites) to homebuyers in support of the Single Family Residential Blight Abatement Program ( Program ). Homebuyers must qualify under Federal HOME program income limits. The selected Developers (collectively, Developer ) will be responsible for managing the Sites from the moment they enter into a purchase contract with the Seller until they subsequently resell the Sites to a Qualified Homebuyer whose total annual household income does not exceed 80% AMI (the Area Median Income for Pierce County, Washington) requirements and has successfully completed a TCRA approved homeownership education course. The Developer s duties shall include, but not be limited to acquiring the property, processing closing documents and coordinating the close of title, managing and maintaining the property, maintaining utilities service, establishing a rehabilitation scope of work, finalizing a budget and project timeline, conducting weekly on-site project inspections, managing relationships with all sub-contractors, verifying permits and City of Tacoma ordinances, administering lien releases, marketing the homes, identifying the prospective Qualified Homebuyer, processing the homebuyer application, coordinating the close of title, expediting first mortgage lender and applicable down payment assistance requirements, ensuring that the prospective Qualified Homebuyer attends a TCRA approved homebuyer education course, and managing a file for the property and lender compliances. The selected Developer will also need to contract for all labor and materials required for the rehabilitation work. The TCRA will not advance any funds directly to the Developer for any Program eligible activities. Payments for rehabilitation will be made to the Developer on a reimbursement basis as will be further identified in a Policies and Procedures Manual to be provided to the selected Developer. Payments for the purchase of the properties will be made directly from the TCRA to title and will be further documented through deeds of trust, promissory notes and other applicable loan documents. No TCRA funds will be disbursed without TCRA approval. In no event shall the after rehab full market value sales price, as determined by a licensed appraiser, exceed the Federal HOME limits set for Pierce County for existing housing. Any difference between the total development cost (TDC) and the final sales price will be borne by the TCRA and deemed a sunk cost by the TCRA in order to rehabilitate and extend the useful life of Tacoma s housing stock. If, on the other hand, the final sales price exceeds the TDC the net proceeds will be returned to the TCRA Affordable Housing Fund (AHF) as program income.

6 Page3 c) Period of Contract The term of the contract resulting from this RFP shall commence when the TCRA executes the Professional Services Agreement (Agreement) and continue for a one-year contracting period after the execution date, with a TCRA option to extend the Agreement for an additional two oneyear terms. The TCRA anticipates the term of the Agreement to commence sometime in February d) Eligible Proposers 1. Proposals will be accepted from nonprofit Affordable Housing Developers, for-profit Affordable Housing Developers, General Contractors or joint ventures/partnerships of any of these entities. Favorable consideration will be given to organizations that possess prior/current experience performing the duties called for within this RFP. 2. The Proposer must not have violated affordability/regulatory agreements of the TCRA or other housing agencies, nor have a record of discriminatory practices for at least the past five years. 3. The Proposal must include team members with a successful track record in providing the types of services as defined within the Scope of Services section contained within this RFP document. Previous projects must be comparable, as determined by the TCRA in its sole discretion, to those presented in the project. Proposers must demonstrate the ability to develop the housing without relying on TCRA staff for support. 4. The Proposal must include a timeline for acquisition and disposition of the Site. 5. Proposals may be withheld from recommendation by the TCRA Administrator to its board members for consideration, in the event any proposing party of the application is currently in arrears or delinquent in payment of any obligation to the TCRA or is deemed to be in noncompliance with any TCRA contractual requirements. 6. The TCRA retains sole discretion to approve or reject Proposers based on a review of past performance. e) Questions Questions regarding the contents of this RFP must be submitted via to sjohnson3@cityoftacoma.org. Copies of the RFP may be obtained from the City s website at: Copies of the RFP and Exhibits may be obtained from the City s website at: Path: City Departments Community and Economic Development Housing Division Home Rehabilitation Affordable Housing Request for Proposal.

7 Page4 Questions regarding this RFP must be submitted in writing ( ed questions are preferred). Questions must be received by Friday, November 22nd, Written inquiries must be clearly marked Tacoma Community Redevelopment Authority Single Family Residential Blight Abatement Program Services RFP. All inquiries must refer to the page and applicable RFP section to which the question relates. Proposers are encouraged to submit their questions regarding this RFP as soon as possible. Copies of the written inquiries and their answers will be posted as an addendum to the RFP online at the City s website address listed above. Recipients of this RFP will be notified of any addendum. Responses to questions, in either written or oral form, will not be deemed to amend the RFP unless and until the response is included in a formal addendum to the RFP. f) Deadline Submit formal proposals including a statement of qualifications evidencing the minimum standards required herein and any proposed special conditions regarding your engagement in this matter to the attention of Shannon Johnson, Contract and Program Auditor. Submissions are due on or before Monday, December 23rd, 2013, at 4:00 p.m. PST at the TCRA offices. Three (3) copies of the proposal must be enclosed in a sealed envelope identified clearly with the words: Proposal for Blight Abatement Program Services RFP Do Not Open with Regular Mail, addressed to: Request for Proposals Proposal for Single Family Residential Blight Abatement Program Services RFP Do Not Open With Regular Mail Shannon Johnson, Contract and Program Auditor City of Tacoma Community and Economic Development Department 747 Market Street, Room 836 Tacoma, WA Proposals will NOT be accepted by or facsimile. All proposals must be received at the address listed in Section 1f, no later than 4:00 PM Monday, December 23rd, Facsimile or electronically transmitted proposals will not be accepted since they will not contain original signatures. Postmarks will not be accepted in lieu of actual receipt. Late proposals will not be opened and incomplete proposals may not be considered at the discretion of the TCRA. The TCRA reserves the right to waive any irregularities or informalities with the submittal of proposals pursuant to this RFP and to determine the basis at its sole discretion for the selection of the firm to enter into one or more service agreements with the TCRA.

8 Page5 Acceptance of a proposal does not constitute a contract or commitment of any kind, nor does it obligate the TCRA to award funds or to make a commitment of any kind. II. RFP TIMELINE The timeline for this RFP is as follows: 1. November 8th, 2013 Date of Issuance 2. November 22nd, December 4th, 2013 Last day for Submission of Questions Pro Forma Training Session 4. December 23rd, 2013 Proposals due to the TCRA 5. January 10th, 2013 Threshold review 6. January 17th, 2013 Proposals Scored 7. January 24th, 2013 Finalists Interviewed (if necessary) 8. February 13th, 2014 Recommendation made to TCRA Board 9. February 14th, 2014 Recommended Developer Notified 10. February 21st, 2014 Contract Awarded This timeline is an estimate and subject to change III. RFP CONDITIONS a) Contingencies This RFP does not commit the TCRA to award a contract. The TCRA reserves the right to accept or reject any or all proposals, if the TCRA determines it is in the best interest of the TCRA to do so. The TCRA will notify all proposers in writing in the event the TCRA elects to reject all proposals or to cancel this RFP process. b) Modifications The TCRA reserves the right to issue amendments to this RFP. c) Proposal Submission To be considered, all proposals must be submitted in the manner set forth in this RFP. It is the proposer s responsibility to ensure that its proposal arrives on or before the specified time. d) Incurred Costs This RFP does not commit the TCRA to pay any costs incurred by proposers in the preparation of a proposal in response to this request and proposers agree that all costs incurred by proposers in developing their individual proposals are the responsibility of

9 Page6 each proposer and are considered a general marketing expense. e) Negotiations The TCRA may require the recommended proposer(s) to participate in negotiations and to submit a not-to-exceed price estimate, technical information or other revisions of their proposals as may result from negotiations. f) Acceptance or Rejection of Proposals Proposals shall remain open, valid and subject to acceptance anytime within ninety (90) days after the proposal opening subject to the satisfactory negotiation of a final contract with prices and other acceptable terms of providing the requested services. g) Formal Agreement In the event a proposer or proposers is/are selected as a result of this RFP process, one or more proposers may be required to enter into a formal agreement(s) with the TCRA. This RFP sets forth some of the general provisions which will be included in the final contract. In submitting a response to this RFP, each proposer will be deemed to have agreed to each clause unless the proposal identifies an objection and the TCRA agrees to a change of language in writing. h) Final Authority The final authority to recommend the award of a contract shall be at the sole discretion of the TCRA administrator. Final authority authorizing the execution of a contract with any recommended proposer(s) shall remain with the TCRA Board. VI. SCOPE OF PROGRAM The TCRA is seeking to execute an agreement for key functions of its Single Family Blight Abatement Program utilizing HOME Investment Partnership ( HOME ) and Community Development Block Grant (CDBG) Funds. At this time the function required of the TCRA consists of the following: a) PROGRAM: The Single Family Residential Blight Abatement Program (the Program ) The Single Family Residential Blight Abatement Program is envisioned as a joint effort between various City departments, local real estate agents and construction professionals

10 Page7 whose mission is to address blighted and abandoned single family homes that have been designated as derelict by the City s Code Compliance staff. Often times, these properties sit idle for months without the benefit of responsible occupants. This tends to create other negative effects such as deteriorating and poorly maintained structures, refuse dumping, graffiti, and other unwanted criminal activities. Coordinated through the Housing Division of the Community and Economic Development Department, CDBG and HOME funds will be allocated to acquire, rehabilitate and subsequently resell these previously abandoned properties to eligible home buyers. b) Program Functions The functions include, but are not limited to: 1. Site(s) Identification and Acquisition The chosen Developer will be responsible for identifying eligible foreclosed and abandoned sites within the City of Tacoma through working with Code Compliance and other City departments, as well as through use of Multiple Listing Service and other real estate resources. These houses must be in such condition that the cost to rehabilitate them and bring them within compliance of all applicable building and health and safety codes does not exceed the maximum subsidy limits as specified in to the 2013 HOME Final Rule. The chosen Developer will be responsible for carrying out this eligible HOME and CDBG activity in a manner satisfactory to the TCRA and consistent with all standards required as a condition of HUD providing the City of Tacoma with HOME and CDBG funds. To the extent that this activity may involve public works contracts that trigger competitive bidding, payment of prevailing wage, or other compliance requirements, the Developer will assist TCRA and City staff as directed in performing necessary actions to comply with all Federal, State and Local laws. This activity will involve the acquisition and rehabilitation of abandoned single-family units, which will be resold to income-eligible homebuyers. Opportunities will be provided to families earning a maximum of 80% of AMI. The TDC will be in compliance with the maximum per-unit subsidy requirements included as to the 2013 HOME Final Rule. Appraisals will be conducted at least 60 days prior to the homebuyer s offer to purchase. The final sales price for each home shall not exceed the Federal HOME limits set for Pierce County for existing housing. The principle, interest, taxes, insurance, and (if applicable) homeowners association dues will not exceed 35% of the household gross monthly income. Should a gap in affordability exist, a deferred second mortgage loan will be provided. The loan will bear no interest. Families purchasing homes through the Program will be required to successfully complete a mandatory 8-hour homebuyer education class through a HUD-approved counseling agency.

11 Page8 Each property will have a recorded lien with an affordability covenant included for a period of up to 10 years. Should any transfer of title occur during the period of affordability the loan will immediately become due and payable and all recaptured funds will be returned to the TCRA. This mechanism will trigger title/escrow to seek concurrence from the TCRA prior to finalizing the sale. 2. Funding Availability and Conditions It will be the responsibility of the chosen Developer to fund the rehabilitation costs of the Sites. Upon partial completion of rehabilitation items, approved by the Developer and TCRA, the Developer will be reimbursed for their rehabilitation costs upon submission of an approved invoice to the TCRA in a manner established by the TCRA. Should a gap in affordability exist, this Program will provide mortgage assistance and/or closing costs as a silent-second loan to low and moderate income homebuyers in the amount of up to $20,000. The maximum amount of assistance is the gap financing limit such that the housing payment to income ratio is between the range of twenty-five percent (25%) and thirty-three percent (33%). The total combined amount of down payment assistance and closing costs assistance cannot exceed $20,000. The first loan must be a fully amortized, fixed rate, maximum thirty-year mortgage. Any TCRA down payment assistance will be secured by deed of trust recorded in subordinate position to the first mortgage. All buyers participating in this Program shall agree to the terms and conditions of an Affordability Period. The length of the Affordability Period will be contingent upon the amount of financial assistance provided by the TCRA. If the property is no longer maintained as the principal residence of the buyer or is sold prior to the end of the Affordability Period, a portion of the HOME and CDBG funds invested in the property must be repaid from the net sales proceeds. Properties that remain owned and occupied by program participants throughout the Affordability Period will in effect be converted to a grant. 3. Developer Fee Calculation The Developer compensation shall be a flat percentage developer fee based on the total development cost of the project. As part of their Proposal, Proposers need to indicate the maximum amount that they would charge if they were contracted by the TCRA to acquire, manage, rehabilitate and resell a house such as the one shown and described in Exhibit A. The Proposer will have an opportunity to indicate this amount when filling out Exhibit B. The amount quoted by the Proposer will be taken into consideration in evaluating their Proposal. Please refer to Exhibit B, attached herewith, for the spreadsheet(s) format that the Proposer will be required to use in presenting their fees.

12 Page9 Unit Sale Price The sales price to the Qualified Homebuyer for the after-rehabilitated full market value, as determined by a licensed appraiser Sites located within the City of Tacoma shall be equal to the lower of the total development cost of the Site, including acquisition and holding costs, or the market value of the home after rehabilitation. In no event shall the after rehab full market value sales price, as determined by a licensed appraiser, exceed the amount specified in to the 2013 HOME Final Rule. Any difference between the total development cost (TDC) and the final sales price will be borne by the TCRA and deemed a sunk cost by the TCRA in order to rehabilitate and extend the useful life of Tacoma s housing stock. If, on the other hand, the final sales price exceeds the TDC the net proceeds will be returned to the TCRA Affordable Housing Fund (AHF) as program income. 4. Design and Construction Standards Rehabilitation activities performed on the Sites by the Developer will be conducted in accordance with the City of Tacoma housing rehabilitation standards from the ongoing Housing Rehabilitation Program and other state and federal codes, statutes and regulations and/or homeowner association, and historic preservation requirements, as applicable. The work is performed properly and in accordance with applicable codes (International Residential Code, Uniform Plumbing Code, National Electrical Code and Health and Safety, International Energy Conservation Code, as amended by Washington State, International Fuel Gas Code, and International Mechanical Code) and City Ordinances in accordance with the City of Tacoma and TCRA Minimum Building Standards (see Exhibit C ). The level of rehabilitation will be addressed in the following manner: Code/Health & Safety Repairs - Eliminate, or otherwise "cure", any and all preexisting code violations and Health and Safety Hazards. Therefore, all rehabilitations must correct pre-existing code deficiencies and/or health and safety related repairs needed. This includes pre-existing construction found that was done without City of Tacoma permits (room additions, garage conversions, patio additions, etc.). All such pre-existing construction must be either brought up to code and obtain approved building permits, or must be demolished, as part of the project. Lead Based Paint (LBP) Hazards- Reduce/abate any lead-based paint hazards present in the homes. A Lead-Based Paint test (XRF testing) and a Risk Assessment will be required on all rehabilitations to identify the existence and scope of any lead based paint hazards in the home. Should LBP exist in the home, Safe Work Practices shall be used and its abatement must be performed by a licensed/certified paint abatement contractor pursuant to the standards of "Lead- Based Paint Poisoning Prevention in Federally Owned and Federally Assisted Housing" found at 24 CFR Part 35 apply. Pest Repairs -The program will require a pest inspection report be prepared for every

13 Page10 home by an inspector who is licensed by the State of Washington Department of Licensing. The report will identify any areas of dry rot or pest damaged wood members in the home and whether or not there are active pest infestations. Any pest or dry wood damaged wood members will be repaired or replaced due to health and safety risk they pose to the structure integrity of the home. Fumigation or other treatment types recommended to eliminate active infestations are required. An inspection report shall be provided upon completion stating that all items listed in the initial inspection report have been corrected. General Property Improvements - Once the cost of repairing all code deficiencies, health and safety items, lead based paint hazards, and pest repairs are totaled up, then any additional program funding may be used to address general property improvements. General property improvements may include a variety of items such as painting, replacement of flooring, cabinets, fixtures, etc. General property improvements may NOT include any materials or items that are of a type and quality which far exceed building standard grades. Minimally acceptable standards may be found at 24CFR Energy Efficiency and Cost Effective Green Improvements: Developers are encouraged to incorporate any green building practice that offers an opportunity to create environmentally sound and resource-efficient buildings. In an effort to encourage modern, green building, and energy-efficiency improvements, Developers are encouraged to incorporate HUD s healthy homes interventions including these seven steps ensuring housing is made and kept: a. Dry: Ensure proper drainage away from housing; clean and/or repair gutters and downspouts, repair leaks seal roofs and windows. b. Safe: Install safety devices on doors, cabinets, window blinds and outlets; provide adequate storage for all poisonous items out of reach of children and labeled in the proper containers; install smoke detectors and carbon monoxide detectors; have appropriate fire extinguishers available. c. Well-ventilated: Service and maintain heating and cooling systems; provide exhaust fans for kitchens, bathroom and dryers to the outside to reduce mold; change furnace filters. d. Pest-free: Provide proper storage and disposal for food products, caulk and seal holes; use least toxic pest management methods. e. Contaminant-free: Remove lead based paint hazards properly; reduce volatile organic compounds in paint, carpet, etc. f. Clean: Install dust walk-off systems in entry ways; provide smooth, cleanable surfaces; provide effective storage space and containers; choose flooring that is easy to clean. g. Well-maintained: Important maintenance calendar for inspecting, cleaning, repairing, replacing housing components/systems. Energy Star Labeled Products: All moderate rehabilitation work should include only

14 Page11 the purchase of Energy Star products and appliances. This includes refrigerators, dishwashers, washing machines, light bulbs, light fixtures, and water heaters, which may include gas tanks, tankless models, heat pumps, and solar with electric backup, heating and cooling systems, and roof products. 5. Marketing Team and Plan a. Proposals must identify the Developer's own marketing staff or a successful real estate agent with experience in marketing, securing financing for homebuyers, and closing the sale of affordable single-family homes of the type and scale proposed. b. No co-signors can be used for First Trust Deed Loans, except those occupying the property. c. Interest-rate buy-down will not be permitted. d. The Affirmative Fair Housing Marketing Plan must include specific outreach efforts which will be made to reach Qualified Buyers. e. Create branding and public awareness through published materials, such as brochures that will incorporate specific language provided by the TCRA (see Exhibit D ). f. The Developer must comply with the Affirmative Marketing Guidelines listed in Exhibit E attached to this RFP. V. PROPOSAL SUBMISSION All proposals must meet the threshold requirements detailed below. If a proposal does not meet these threshold requirements, the Proposer will be advised that the proposal will not be reviewed further. 1. Threshold Requirements The Developer team must include a lead or managing Developer with adequate financial capacity. The Developer is the entity that will contract with the TCRA and manage the day-today activities of the project. Favorable consideration will be given to those respondents who possess prior/current experience performing the duties called for within this RFP. The Developer must have: 1. A minimum of five years of recent and extensive rehabilitation and construction experience of single-family homes, with a minimum of two years experience of working on projects funded through CDBG and/or HOME funds preferred. This

15 Page12 experience includes evaluating conditions of homes requiring to be repaired; evaluating and identifying building code violations, including illegal room additions and conversions; preparing a written rehabilitation scope; determining rehabilitation costs; obtaining required building permits and inspections; and having a Washington general contractor license in good standing. In addition, having directly conducted major rehabilitation of a minimum of five single-family homes in the last five years. 2. Reference letters from at least three separate municipal jurisdictions and/or private business entities attesting to the amount and quality of rehabilitation work completed. A minimum of one letter should come from a CDBG and/or HOME Grantee / municipality. 3. Demonstrated ability to provide financial resources to rehabilitate multiple properties simultaneously with the expectation of reimbursement upon submittal of approved invoices. 4. Possess valid licensure to include, but not limited to a valid Washington Real estate Broker's license, a valid Washington General Contractor's license, and the ability to obtain a valid City Business license. (If selected, the Developer must have a valid City business license prior to commencing work on behalf of the TCRA). 5. Current insurance policies meeting the Insurance Certificate Requirements attached as (see Exhibit F ) and that name the TCRA as an additionally insured entity. 6. A minimum of five years of extensive real estate experience in acquiring single-family homes. This experience includes negotiating directly with sellers to acquire property. 7. The internal marketing staff or a contracted real estate agent must have a minimum of five years experience in marketing, securing financing for homebuyers, and closing the sale of affordable single-family homes of the type and scale proposed. This experience includes negotiating directly with buyers to sell property; listing, marketing and placing property on the realtor s Multiple Listings Services; and having a Washington real estate broker license in good standing. 8. Experience over the last five years managing real properties from acquisition to final sale. The experience includes maintaining and securing property. 9. Experience over the last five years in obtaining financing from financial institutions to leverage and/or obtain funding to acquire and rehabilitate property. 10. Have experience working with local governments in rehabilitating or constructing new residential property. This experience includes having an understanding of government regulations in administering the program and the funding sources, to include HOME and CDBG specifically.

16 Page Understanding and knowledge of the federal regulations of the HOME Investment Partnerships Program and the Community Development Block Grant Program. 12. Ability to provide references of the above listed requirements as evidence of satisfactory experience and performance. 13. Must not have violated affordability/regulatory agreements of the City, the TCRA or other housing agencies, nor have a record of discriminatory practices for at least the past five (5) years. 14. Possess a valid DUNS number, are currently registered on the System Award Management System (SAMS) and are not included on any excluded parties list. Proposers must meet the above mentioned requirements for the application to be reviewed. Note: It is the sole responsibility of the Proposer to ensure that threshold requirements are met. Furthermore, the selection of any Proposals for Developer services will be further subject to the approval of the Board of the TCRA. 2. Proposal Contents 1. The first page of the proposal shall be the Certification statement attached as Exhibit G to this RFP. This document needs to be filled out and signed by the Lead Developer/Builder of the Proposer s Team. 2. Provide a sample development pro forma based on the sample property (please see Exhibit A for a property profile). The pro forma must follow the format shown in Exhibit B, to include three separate Excel worksheets, attached herewith, and it must include, but not be limited to, the following: For the purpose of this Proposal, Proposers shall assume the list price given for the foreclosed home, the direct rehabilitation cost and contingency, the final appraisal price for the rehabilitated home, and other minor line items that are already filled out on the attached pro forma template (Exhibit B ), to include three separate Excel worksheets. Instructions for filling out the entire pro forma are included in Exhibit H. The pro forma template) is also available in Excel format on the City s website as Exhibit B". Proposers may opt to use this Excel spreadsheet to produce their development pro-forma. Before using this Excel spreadsheet, however, please read the instructions in Exhibit H. 3. Using the template attached as Exhibit I, provide a timeline for acquiring, rehabilitating and reselling the property identified in Exhibit A. This timeline should cover the period beginning with the identification of the property through to the final sale. 4. Provide documentation confirming the financial capacity of the Proposer, such as bank

17 Page14 statements, letters of credit, lines of credit, and compiled financial statements. audited financial statements are available, please submit these). (If 5. Identify how you would market the properties to income eligible buyers, and demonstrate how you would comply with the Affirmative Marketing Guidelines shown as Exhibit E to this RFP. Favorable consideration will be given to those respondents who actively engage in creating Affirmative Fair Housing Marketing strategies in marketing their properties. 6. Favorable consideration will be given to those respondents who commit to Veteran s Preference. This preference is available to applicants where the head of household, spouse or co-head is a veteran or survivor of a veteran who actively served in a branch of the United States Armed Services. The term survivor includes the spouse, widow and/or widower of a veteran (unless remarried). A person who served in the military and was dishonorably discharged is not eligible for the Veteran s Preference. 7. Describe your process for providing Homebuyer Education training either directly (if State approved) or thorough use of a State approved provider. 8. Provide complete written responses to the information requests listed below. Please be as complete as possible otherwise your response may be considered as nonresponsive, in which case your application may be disqualified. Favorable consideration will be given to those respondents with direct CDBG and/or HOME experience. a. Provide a list of clients, public or private, that you have provided developer services for over the last five years. b. List your experience in managing acquisition/rehabilitation/resale projects over the last three years. c. Identify the ability of your firm to locate and analyze residential properties for possible acquisition under the Program. Specifically describe the process you would undertake in identifying and recommending properties for sale to the City. d. Identify projects previously conducted for other municipalities utilizing the services included within this RFP. Include within your identification the name of the municipality, dates of service and scope of services performed. e. List any professional designations or licenses you possess associated with the work being requested. For verification purposes, please provide a copy of the licenses and contact information of the licensing authority, including a phone number. f. List the number of years, your organization has provided Developer services for homeownership properties that did not exceed four units. Please identify those

18 Page15 using federal funds. g. Specify whether your organization has been involved in any legal actions associated with the services being requested within the past five years. If so, please provide adequate detail in your response. 9. Please complete the "Commitment to Use Green Building Methods" form from Exhibit J if you want to receive consideration under that evaluation criterion. Favorable consideration will be given to those respondents who commit to Green Building Methods described in Exhibit K. c) Submission Requirements All Proposals must be typed and comply with the requirements detailed in this RFP. Any revisions or additions to the proposal after submission will not be accepted unless expressly requested for clarification purposes by the TCRA. Incomplete Proposals will not be considered for funding. It is the responsibility of the Proposer to ensure completeness of their submittal. Any False, misleading, incomplete or deceptively unresponsive statements in connection with a proposal shall be sufficient cause for rejection of the proposal. The evaluation and determination in this area shall be in the sole judgment of the TCRA and this judgment shall be final. The TCRA may require additional information for the determination of the Proposer s qualification to provide the proposed services. Submission of a Proposal shall constitute acknowledgment and acceptance of all terms and conditions contained in this RFP. The Proposal must be submitted in the legal name of the corporation or entity. Proposals must be signed by an authorized representative of the Proposer organization or entity who has legal authority to bind the entity in contract with the TCRA. Lack of compliance with legal or administrative submission requirements may lead to disqualification. Proposals that are disqualified will not be reviewed and rated. Proposers may withdraw their proposal at any time prior to the proposal deadline. Proposals received after the specified time and date will not be accepted. VI. PROPOSAL EVALUATION AND SELECTION a) Criteria Overview

19 Page16 The TCRA will evaluate all Proposals according to the following criteria: Scoring Categories 1. Developer Team Capacity Development Entity Experience Home Sales/Marketing Management Experience Asset Management Experience Experience with Local Governments on Similar 2. Financial Feasibility Competitiveness of Developer Fee Financial Capacity of Developer 3. Marketing Plan 4. Incorporation of Green Building Methods 5. Verifiable References The following section explains the criteria that will be considered in the evaluation of the Proposals. Favorable consideration will be given to those respondents with direct CDBG and/or HOME experience. 1. Developer Capacity Proposals will be evaluated based on the strength of the Developer should the applying entity consist of more than one organization. The Developer will be evaluated based on their capacity for performing each of the various functional components of the projects, such as property management, rehabilitation management, marketing, and experience working with local governments. Each functional component of the Developer, whether internal or outsourced, will be evaluated for capacity, experience and successful track record in performing their respective roles on completed developments of the type (target population), size, and design complexity similar to that being proposed. Favorable consideration will be given to those respondents with direct CDBG/HOME experience. Development Entity Successful Track Record (Only the Lead Developer's experience will be considered in this category.) Qualification will require listing the number of homeownership units acquired, rehabilitated and sold in Pierce County within the past five years by the lead Developer. The lead Developer will verify its role as a Developer or Co Developer for the completed projects listed. A street address and description must be provided for each project. Home Sales/Marketing Entity Successful Track Record Proposers must provide information about the lead Developer s Team's and/or real estate agent. Consideration will be given based on the experience of the named individual with newly rehabilitated homeownership units restricted to low or moderateincome buyers. The Developer Team's marketing agent or broker must have a minimum of five years experience in marketing, securing financing for homebuyers, and closing

20 Page17 the sale of affordable Pierce County area. homeownership units of the type and scale proposed within the The number of rehabilitated homeownership units restricted to low or moderate income buyers successfully marketed must be listed, along with addresses. In addition, the number of years the individual has been involved in marketing must be provided. Property Management Entity Successful Track Record Points will be awarded based on the experience of the named property management entity, whether it is the lead developer or some other agent. The property manager must have a successful track record of managing single-family houses from acquisition to the point of sale within the last five (5) years. The projects managed must be listed, along with addresses and the number of units. Successful Track Record with Local Governments The Developer Team's track record in working with local governments to construct newly built residences or rehabilitate existing residences will be evaluated. The TCRA will take into consideration the number of projects that the Proposer has conducted for municipalities utilizing the services included within this RFP in the last 5 years. 2. Financial Feasibility The Proposals will be reviewed to assess financial feasibility and the extent to which the Proposer is likely to deliver projects in a timely manner. The proposed timeline will be reviewed for reasonableness and consistency (starting from acquisition through sale of the homeownership units). Competitiveness of Developer Fees The Developer compensation shall be a flat percentage developer fee based on the total development cost of the project. This fee will be evaluated based on reasonableness and competitiveness. Financial Capacity Evidence of acquisition and construction financial resources in place to assist in the financing of the projects will also be taken into consideration. Proposers will be evaluated based on their ability to satisfactorily demonstrate funding commitments. Commitments may be in the form of verifiable cash reserves, letter of credit or lines of credit. Proposers will need to submit their compiled financial statements for the past two (2) calendar years plus the last six (6) months in order to be evaluated in this category. 3. Affirmative Marketing Plan/Assistance to Buyers Proposals must include a marketing plan that incorporates all aspects of the Affirmative Marketing Requirements in Exhibit E of this RFP. Detailed information on the target market, marketing assumptions, and sales strategy must be included. Details on marketing and

21 Page18 outreach efforts to the appropriate target market as well as homebuyer education efforts must be included. Sales strategy should include details on staffing, monitoring for compliance with the TCRA's Affirmative Marketing Guidelines, method for determining the buyers if there are more qualified buyers than available homes. The following factors will be taken into consideration when evaluating the Proposer's Affirmative Marketing Plan and assistance to buyers: a. Marketing plan for homebuyers b. Homebuyer education plan* c. Copy of valid State of Washington Real Estate Broker or Sales License As previously mentioned in the Proposal Contents section of this document, favorable consideration will be given to those respondents who commit to Veteran s Preference and include outreach methods in their marketing plan. * Home Ownership Education Homeownership counseling and education is required. Prospective Qualified Homebuyers must complete an 8-hour homebuyer education course with a HUD approved homebuyer education provider. 4. Built Green Remodeler Checklist Consideration will be given if the Developer commits to employing the Green Building methods listed on the Built Green Remodeler Checklist whenever it is feasible from a scheduling and budgeting perspective. The Built Green Remodeler Checklist was created by the Built Green Master Builders Association of Pierce County organization in order to promote an approach to home building that emphasizes quality construction, energy efficiency, good indoor air quality, environmentally sound landscaping, and livable neighborhoods. The Green Remodeler Checklist is attached herewith as Exhibit K. To learn more about the Built Green Remodeler Checklist or Green building methods please visit the following website: 5. Verifiable References Proposals that include references that can corroborate the qualifications and experience presented by the Proposers will be taken into consideration by the TCRA. Only those references for which name, complete address and contact telephone numbers are provided will be counted. At least two references from a municipality and one from a private organization/entity must be submitted in order to be evaluated in this category. VII. APPLICATION PROCESS a) Review Process

22 Page19 1. Threshold Review An initial review of each submitted proposal will be conducted. It will be verified for completeness and that all supporting documents have been included to meet eligibility and threshold requirements. 2. Technical Review Proposals that meet threshold requirements will then be scored and ranked by a review panel selected by the TCRA. Each Proposal will be evaluated on its own merits for content, responsiveness, conciseness, clarity, relevance, and strict adherence to the instructions in this RFP. Any materials that are determined to be incomplete or deficient may be rejected by the TCRA at its sole discretion. Additional information not contained in the Proposal will not be considered. 3. Interview Proposers who are selected to be on the TCRA's short list will be invited to an interview before the review panel. In addition, background (including but not limited to site visits for previously completed projects) and reference checks may be conducted during this interview phase. The review panel will select the final Proposer and make a recommendation to the Tacoma Community Redevelopment Agency Board. TRCA Board Review TCRA's staff will recommend the selected Proposer(s) to the TCRA Board for approval. The Board will exercise final authority on the recommended Proposal and may authorize the TCRA to enter into a contract with the selected Proposer(s). Due Diligence Due diligence review will continue following Proposal selection. The selected Proposer shall provide any material, documentation or clarification requested by the TCRA.