PURPOSE AND ELIGIBLE ACTIVITIES

CITY OF VIRGINIA BEACH Department of Housing and Neighborhood Preservation REQUEST FOR PROPOSALS Information and Application Instructions PROJECT-BASED VOUCHER PROGRAM (PBV) RFP Issued on February, 14 for Vouchers to be Available in Calendar Year 16 PURPOSE AND ELIGIBLE ACTIVITIES The Virginia Beach Department of Housing and Neighborhood Preservation (DHNP) is making available a total of up to 40 Project-Based Housing Choice Vouchers to support the rehabilitation or new construction of affordable housing. Project-Based Vouchers may be awarded to a new construction project or a substantial rehabilitation project. Project-Based Vouchers may be awarded to multiple applicants up to the maximum number available. DHNP may award all or none of the vouchers applied for. Any vouchers committed as a result of this RFP will not be made available until calendar year 16, and are subject to the availability of funds as determined by HUD and Virginia Beach City Council at that time. New construction is defined as: Housing units that do not exist on the proposal selection date and are developed after the date of selection pursuant to an Agreement between the DHNP and the owner for use under the PBV program. Substantial rehabilitation is defined as: Housing units that exist on the proposal selection date, that are in need of substantial rehabilitation, and are rehabilitated, pursuant to an Agreement between the DHNP and owner, for use under the PBV program. Applying organizations should be aware of the following conditions: 1. All required land use approvals must be obtained. Any award of vouchers is contingent upon receiving all required land use approvals.. The Project must meet all applicable requirements of the HUD Project-Based and Housing Choice Voucher program regulations. 3. The project will be subject to a HUD subsidy layering review, in accordance with HUD subsidy layering regulations (4 CFR 4.13) to prevent excess subsidy. 4. The housing project must comply with design and construction requirements of the Fair Housing Amendments Act of 1988 and implementing regulations at 4 CFR 0., as applicable, and accessibility requirements of section 04 of the Rehabilitation Act of 1973 (9 U.S.C. 794) and implementing regulations at 4 CFR part 8.. Construction may involve application of the Federal Davis-Bacon construction wage guidelines. Construction costs may be higher if these apply. 6. Projects must comply with AICUZ requirements. 7. An Environmental Review and/or Assessment will be required. If an Assessment is required, the cost will be charged to the applicant. 8. Due to the above conditions and requirements, applicants should be aware of the significant lead time necessary to secure all required approvals prior to commencement of construction. 9. Execution of an Agreement to enter into a Housing Assistance Payments Contract (AHAP) is contingent upon completion of all of the above requirements. DHNP Request for Proposals - Project-Based Vouchers Page 1

The following housing types are not eligible for PBV awards under this RFP: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Shared housing; 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 services, board and care, or intermediate care. However, PBV assistance may be provided for a dwelling unit in an assisted living facility that provides home health care services such as nursing and therapy for residents of the housing; Units that are owned or controlled by an educational institution or its affiliate and are designated for occupancy by students of the institution; Manufactured homes; Cooperative housing; Transitional Housing; High-rise elevator project for families with children. Units occupied by an owner of the housing. Units occupied by a family ineligible for participation in the PBV program. In addition, PBV assistance will not be provided to: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) A public housing dwelling unit; A unit subsidized with any other form of Section 8 assistance (tenant-based or projectbased); A unit subsidized with any governmental rent subsidy (a subsidy that pays all or any part of the rent); A unit subsidized with any governmental subsidy that covers all or any part of the operating costs of the housing; A unit subsidized with Section 36 rental assistance payments (1 U.S.C. 171z-1). A unit subsidized with rental assistance payments under Section 1 of the Housing Act of 1949, 4 U.S.C. 1490a (a Rural Housing Service Program). A Section project for non-elderly persons with disabilities (assistance under Section 16 of the Housing and Community Development Act of 1987, 1 U.S.C. 1701q note); Section 811 project-based supportive housing for persons with disabilities (4 U.S.C. 8013); Section supportive housing for the elderly (1 U.S.C. 1701q); A Section 1 rent supplement project (1 U.S.C. 1701s); A unit subsidized with any form of tenant-based rental assistance (as defined at 4 CFR 98.1(b) ()) (e.g., a unit subsidized with tenant-based rental assistance under the HOME program, 4 U.S.C. 1701 et seq.); A unit with any other duplicative federal, state, or local housing subsidy, as determined by HUD or by the DHNP 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). ELIGIBLE APPLICANTS DHNP Request for Proposals - Project-Based Vouchers Page

For-Profit, or Non-profit, 01(c) (3) housing development organizations proposing to create affordable housing that will serve residents of Virginia Beach. REQUIREMENTS FOR ORGANIZATIONS RECEIVING PROJECT-BASED VOUCHERS The organization must be incorporated in the Commonwealth of Virginia. Non-profit organizations must have received a 01(c) (3) tax-exempt organization determination. 1. The organization must have a board of directors that hires the executive director and sets policy and financial guidelines.. The organization must have policies and procedures including admission policies, rules for resident behavior, procedures for involuntary discharge and a complaint procedure. 3. The organization must be annually audited by a certified public accounting firm and the results must be provided to the City of Virginia Beach. The latest audit must be part of this application. 4. The organization must have in place the following insurance which shall be written by companies authorized to do business in the Commonwealth of Virginia and acceptable to the City: a. Comprehensive general liability insurance at limits not less than one million dollars ($1,000,000.00) combined single limits b. Commercial general liability insurance including contractual liability coverage s in the amount not less than one million dollars ($1,000,000.00) combined single limits c. Employees dishonesty bond at limits not less than one million dollars ($1,000,000.00) d. Workers Compensation Insurance as required under Title 6. of the Code of Virginia. The organization must comply with all the laws and regulations of the City of Virginia Beach, including but not limited to laws involving the use, maintenance and operation of structures, including building permits, zoning, code enforcement and rental certificates of compliance. 6. The organization must not be involved in any current litigation or contractual dispute with the City of Virginia Beach. 7. The organization must designate a point of contact for DHNP staff. 8. The organization must provide to DHNP, HUD or its agents reports, financial and other information as requested that may be needed to ensure compliance with local, state and federal laws and regulations. 9. The organization must provide full and clear recognition of the City s contribution in its publications, fund raising documents and other materials that are used to seek funding or promote the organization.. Organizations must be able to enter into an Agreement for Housing Assistance Payment (AHAP) contract and start the project for which PBV s have been requested within a 1 month period after the announcement of award of PBV s or DHNP reserves the right withdraw the award. APPLICATION INSTRUCTIONS DHNP Request for Proposals - Project-Based Vouchers Page 3

Applicants should complete the application form and submit five copies (excluding requested attachments) by 4:30 P.M. on Friday February 8 th, 14 to: Department of Housing and Neighborhood Preservation, Virginia Beach Municipal Center, 44 Courthouse Drive, Bldg. 18-A, Virginia Beach, VA 346; ATTN: Andrew Friedman Copies must be mailed or hand-delivered. SCORING CRITERIA FOR EXISTING UNITS: CRITERIA MAX. POINTS AVAILABLE 1. Term of Contract Requested. Community Amenities 3. Unit Amenities 4. Ownership Experience. Management Experience 6. Public Purpose TOTAL POINTS AVAILABLE 0 1. TERM OF CONTRACT REQUESTED If requesting a ten-year contract: If requesting a five to nine year contract: If requesting a contract of less than five years: 0. COMMUNITY AMENITIES Project is located outside an area of low-income concentration. Site is within 1/4 mile of 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. 3. UNIT/APT. COMPLEX AMENITIES 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: If two amenities: If one amenity: 4. OWNER EXPERIENCE If applicant has years or more experience owning affordable rental If applicant has to 19 years experience owning affordable rental If applicant has years or more experience owning rental If applicant has to 19 years experience owning rental 4 4. MANAGEMENT EXPERIENCE If applicant has years or more experience managing and maintaining affordable rental If applicant has to 19 years experience managing and maintaining affordable rental DHNP Request for Proposals - Project-Based Vouchers Page 4

6. PUBLIC PURPOSE If 7% or more of units, including non-pbv units, to be restricted to low- or very-low income occupancy: If 0% to 74% of units, including non-pbv units, to be restricted to low- or very-low income occupancy: If other City-identified priority needs* will be met: * Priority needs would be those indicated in the City of Virginia Beach Consolidated Plan for a particular community or any other official document that indicates a community's needs as it relates to housing. Applicants will be asked for justification/documentation of how their projects meet priority needs. SCORING CRITERIA FOR NEW CONSTRUCTION UNITS: CRITERIA MAX. POINTS AVAILABLE 1. Term of Contract Requested. Site Location 3. Design 4. Development Experience. Owner Experience 6. Management Experience 7. Project Feasibility/Readiness to begin Construction 8. Public Purpose 30 TOTAL 1 1. TERM OF CONTRACT REQUESTED If applicant is requesting a ten year contract: If applicant is requesting a five to nine year contract: If applicant is requesting a contract of less 0 than five years:. SITE LOCATION Project is located outside an area of high lowincome concentration. Project is within 1/4 mile of shopping, significant health facility and neighborhood services, or is within 1/4 mile of bus to these services; and is within three miles of a significant health facility: 3. DESIGN If architectural elevations, setbacks, and massing considered acceptable for proposed use and in relation to adjacent land uses by City Planning Department staff; project amenities are appropriate for the planned use*: If the proposed project meets most of the above criteria and only slight modifications will be necessary to meet City Planning approval: * Project Amenities: If a family housing development, the site plan provides for laundry facilities, recreational facilities on site or such facilities exist within ¼ mile of the project site. If a senior housing development, in addition to the above, units should have access to exterior in form of balconies or first floor patios and interior common areas with square footage not less than required under VHDA Construction Guidelines. DHNP Request for Proposals - Project-Based Vouchers Page

4. DEVELOPMENT EXPERIENCE If applicant has developed 0 or more lowincome housing units as primary or co- sponsor in the past five years: If applicant has developed less than 0 lowincome housing units as primary or co- sponsor in the past five years:. OWNER EXPERIENCE If applicant has or more years experience in owning affordable rental If applicant has to 19 years experience in owning affordable rental housing. If applicant has or more years experience in owning other types of rental If applicant has to 19 years experience in 1 owning other types of rental 6. MANAGEMENT EXPERIENCE If applicant has or more years experience in managing and maintaining affordable rental If applicant has to 19 years experience in managing and maintaining affordable rental housing. If applicant has or more years experience in managing and maintaining other rental If applicant has to 19 years experience in 1 managing and maintaining other rental 7. PROJECT FEASIBILITY/READINESS TO COMMENCE CONSTRUCTION If zoning and other required entitlements are approved and 80% of amount of projected construction period or permanent period debt financing required for feasibility is conditionally committed and/or reserved. If zoning and other required entitlements are likely to be approved and if less than 80% of amount of projected construction period or permanent period debt financing required for feasibility is conditionally committed and/or reserved. 8. PUBLIC PURPOSE If 7% or more of all units will be restricted to low- or very-low income occupancy. If 0% to 74% of all units will be restricted to low- or very-low income occupancy. If % to 49% of all units will be restricted to low- or very-low income occupancy. If other City-identified priority needs* will be met: * Priority needs would be those indicated in the City of Virginia Beach Consolidated Plan. Applicants will be required to provide justification/documentation of how their projects meet priority needs. DHNP Request for Proposals - Project-Based Vouchers Page 6

NOTE: No more than points will be given in this category. AWARD PROCESS: Within ten days of the deadline date, DHNP will determine if any commitments for vouchers will be made. All applicants will be notified of the determination. Applicants who are successful will receive letters of commitment. All commitment letters will be subject to conditions including compliance with all applicable statutes and regulations and availability of funding. OTHER INFORMATION Percentage of Units in Total Project for Which Project-Based Voucher are Requested: If applicants are applying for vouchers for % or more of the total units in the project, and if the units are intended for non-elderly, non-disabled occupants, then the applicant must plan for and provide appropriate support services as per 4CFR 983.6. Tenant Selection: If a selected project completes all requirements and can be occupied, tenants selection may be limited by the following requirement: At least seventy-five percent (7%) of the families approved for tenancy shall be families whose annual income does not exceed thirty percent (30%) of the median income for this area as determined by HUD and as adjusted by family size. Whether this requirement will apply will be determined during the calendar year in which leaseup occurs. Determination of Rent: The amount of the rent to owner will be determined in accordance with HUD regulations. Except for certain tax credit units, the rent to owner must not exceed the lowest of: An amount determined by DHNP, not to exceed 1 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. Allowable rents, and utility allowances for tenants in an approved project will be determined based on regulations in force at the time of lease up, including published Fair Market Rents and utility allowances. An independent reasonable rent study in accordance with HUD requirements will be prepared to determine the initial contract rent. The total rent to the owner for PBV assisted units consists of the tenant rent (the portion of the rent to owner paid by the family) and the rental assistance paid by DHNP in accordance with the HAP contract. For more information, contact Andrew Friedman at afriedma@vbgov.com or 77-38-7. DHNP Request for Proposals - Project-Based Vouchers Page 7