REQUEST FOR PROPOSALS RAD PROJECT BASED VOUCHERS PROPOSAL AVAILABLITY: WEDNESDAY FEBRUARY 1, 2017 This solicitation will remain open until PHA provides notification of closure.
Request for Proposals Rental Assistance Demonstration Program Project-Based Vouchers 1.1 Purpose of Solicitation SECTION 1 INTRODUCTION AND BACKGROUND The Peoria Housing Authority (PHA) is seeking Proposals from Existing Property Owners; Non-Profit Housing Providers; and Private Developers interested in securing Rental Assistance Demonstration (RAD) Project Based Vouchers (PBV) for existing; newly constructed and/or rehabilitated residential multi-family housing. It is the intent of PHA to transfer assistance for a portion of the units at the Robert A. Taft Homes Public Housing Community to other properties throughout Peoria under a conversion of subsidy to Project Based Vouchers under the RAD Program. The Housing Authority may also, at its sole discretion, choose to award Non-RAD Project Based Vouchers in conjunction with RAD PBV s to support financial viability of a project. 1.2 The Peoria Housing Authority The Peoria Housing Authority, Illinois, was created under the 1937 Housing Act for the purpose of providing decent, safe and sanitary housing to the low and moderate-income residents of the City of Peoria. Currently, PHA owns and manages a variety of affordable housing units and administers Section 8 Housing Assistance Vouchers along with a myriad of supportive service programs for its residents. Together, these programs provide quality and sustainable housing opportunities for approximately 2,700 qualifying low-income households. A seven-person Board of Commissioners, authorized by the laws of the State of Illinois, appointed by the Mayor and confirmed by City Council, is responsible for the development of housing policy and the authorization of expenditures. PHA s jurisdiction includes the City and County of Peoria. Several years ago, PHA embarked on an aggressive plan to reposition its Public Housing portfolio and expand affordable housing units throughout Peoria. Repositioning strategies have included the demolition and redevelopment of former Public Housing communities; acquisition and development of new mixed income communities; and conversion of Public Housing to Project Based Rental Assistance under the Rental Assistance Demonstration (RAD) Program. This RFP is to assist PHA in the redevelopment of Robert A. Taft Homes to relocate the existing housing units in areas of opportunity throughout the City and County of Peoria. All 216 units at Taft Homes will be replaced through conversion to RAD Project Based Vouchers. It is anticipated that 22 RAD vouchers will be placed in a mixed finance project to be built on the Taft site. It is the intent of PHA under this solicitation to make available the remaining 194 RAD PBV s and a limited number of Non-RAD Project Based Vouchers to properties throughout the Peoria area to support the replacement of the Taft units. 1 PHA RAD PBV Solicitation
1.3 The Rental Assistance Demonstration Program General - In 2012, Congress authorized the Rental Assistance Demonstration (RAD) to test a new way of meeting the large and growing capital improvement needs of the nation s aging public housing stock. Properties convert their assistance to long-term, project-based Section 8 contracts. These new contracts provide a more reliable source of operating subsidy that allow PHAs to safely leverage private capital typically debt and equity in order to finance the property rehabilitation or replacement. The contracts as well as underlying use restrictions must be renewed each time they expire, ensuring the long-term affordability of the improved properties. Transfer of Assistance As a demonstration program, there is no new funding associated with RAD. Thus, rental amounts for the RAD Project Based Vouchers are less than the HUD Section 8 Fair Market Rents. However, RAD requires a one for one replacement. Therefore, to support the redevelopment of Taft Homes, PHA is seeking other opportunities for placement of the RAD vouchers. The transfer of assistance provision of RAD permits the PHA to transfer RAD Project Based Vouchers from the existing public housing site to other properties. It is the intent of PHA to make available the remaining 194 Taft Homes RAD vouchers to properties throughout the Peoria area. Properties receiving RAD transfer of assistance vouchers can be existing properties; rehabilitation properties; or new construction properties. All properties must comply with the Federal Site and Neighborhood Standards and Federal Housing Quality Standards. Transfer of assistance must generally occur in neighborhoods that have a lower concentration of poverty than the area in which the converting project is located. Ownership and Control - RAD requires that a public or non-profit entity maintain a controlling interest in the property, either directly or through a control agreement. PHA will work to structure the RAD requirements in a manner acceptable to existing property owners and developers within the HUD guidelines described below. Except to facilitate the use of tax credits, during both the initial term and all renewal terms of the HAP contract, RAD requires ownership or control of the converting project by a public or non-profit entity. Public or non-profit entity or ownership control requirements may be satisfied if a public or non-profit entity: (1) holds a fee simple interest in the real property of the Covered Project; (2) has the direct or indirect legal authority (via contract, partnership share or agreement of an equity partnership, voting rights, or otherwise) to direct the financial and legal interests of the Project Owner or (3) has 51 percent or more interest of the general partner share in a limited partnership; is the managing member of an LLC or has 51 percent or more of the membership shares of an LLC. Ownership of the project may be a tax credit entity controlled by a for-profit entity to facilitate the use of tax credits, but only if HUD determined that the Public Housing Authority preserves its interest in the property. 2 PHA RAD PBV Solicitation
Preservation of the PHA s sufficient interest in a project using tax credits could include, but not be limited to, the following: PHA, or an affiliate under its sole control, is the sole general partner or managing member; PHA retains fee ownership and leases the real estate to the tax credit entity pursuant to a long-term ground lease; PHA retains control over the leasing of the Covered Project, such as exclusively maintaining and administering the waiting list for the Covered Project, including performing eligibility determinations; PHA enters into a Control Agreement by which the PHA retains consent rights over certain acts of the Project Owner (including, for example, disposition of the Covered Project, leasing, selecting the management agent, setting the operating budget and making withdrawals from the reserves) and retains certain rights over the Covered Project, such as administering the waiting list; or Other means that HUD finds acceptable. 1.4 Project Based Voucher Program The U. S. Department of Housing and Urban Development s ( HUD ) Project-Based Voucher Program (PBV) is an optional component of the Housing Choice Voucher Program whereby a Housing Authority may choose to provide subsidy to selected privately-owned properties. Unlike a Tenant-Based voucher that is awarded to a family, the Project Based Voucher is provided to the property and is available only to a family that chooses to reside in the designated property. Owners of participating properties enter into a PBV Housing Assistance Payments (HAP) Contract for a pre-determined number of units. RAD Project Based Voucher HAP Contracts are for an initial minimum period of 15 years and must be renewed. Initial rents are established by HUD and are automatically increased annually in accordance with the OCAF (operating cost adjustment factor) published annually by HUD. Generally, all other provisions of the Non-RAD Project Based Voucher Program apply to the RAD vouchers. 1.5 Award PHA anticipates making awards to multiple owners of property that meet the RAD transfer of assistance requirements outlined in this solicitation. If a Project Proposal (as defined below) from an Owner/Developer is selected based on the evaluation criteria set forth in this RFP, then PHA anticipates that it will execute a Commitment Letter addressed to the selected Respondent within 120 days of PHA s receipt of the Owner/Developer s Project Proposal. PHA also anticipates notifying Owner/Developers within 120 days of PHA s receipt of the Project Proposal if the submitted Project Proposal is not selected based on the evaluation criteria identified herein. PHA reserves the right to cancel or discontinue this solicitation at any time throughout the duration of this RFP as determined to be in the best interest of PHA to do so. 3 PHA RAD PBV Solicitation
1.6 PHA Jurisdiction Eligible properties must be located within the City or County of Peoria, Illinois (PHA s jurisdiction). 1.7 HUD Rules and Requirements In addition to the provisions outlined in this Request for Proposals, properties selected must comply with all requirements set forth in PIH Notice 2012-32 (HA), REV-2 Rental Assistance Demonstration Final Implementation, Revision 2 dated June 15, 2015 and all requirements set forth in the Code of Federal Regulations, 24CFR Part 983, and the Project-Based Voucher Program; Final Rule; issued October 13, 2005 as amended and further modified. SECTION 2 SCOPE OF WORK 2.1 RAD Project Based Voucher Assistance The number of RAD Project Based Vouchers anticipated to be made available under this solicitation is 194 vouchers. PHA at its sole discretion may decrease or increase this number based on quality of proposals received; and may choose, at its sole discretion to award additional vouchers under its Non-RAD local Project Based Voucher Program. 2.2 Uniform Relocation Act Individuals displaced as a result of the Project Based Voucher Program must be provided relocation assistance in accordance with all provisions of the Uniform Relocation Act. The definition of initiation of negotiations as described under the URA shall for the purposes of the project based voucher program be defined as the date of the execution of the Agreement (Agreement to Enter in a Housing Assistance Payments Contract (AHAP) or the Housing Assistance Payments (HAP) contract) between the Owner and the Housing Authority. The owners shall be responsible for all relocation costs 2.3 Equal Opportunity Requirements The PBV Program requires compliance with all equal opportunity requirements under federal laws. Owners shall be required to execute all corresponding certifications of civil rights and fair housing. 2.4 Special Housing Types PHA will not provide project based vouchers for group homes, shared housing, cooperative housing, manufactured homes or homeownership under this RFP. 4 PHA RAD PBV Solicitation
2.5 Eligible Housing Units Eligible housing units for project based voucher include new construction, rehabilitation and existing housing. 1) Existing Housing - A housing unit will be considered an existing unit for purposes of the project-based voucher program, if, at the time of selection of the project, the unit complies with all requirements of the Federal Housing Quality Standards (HQS). Preference will be given to existing units that have been recently constructed or undergone substantial rehabilitation within the past five years. 2) Rehabilitated Housing - A housing unit will be considered a rehabilitation unit for purposes of the project-based voucher program, if, at the time of selection of the project, the unit does not substantially comply with the Federal Housing Quality Standards (HQS) and is rehabilitated under an Agreement between PHA and the owner for use under the PBV Program. 3) Newly Constructed Housing Housing units that do not exist on the proposal selection date and are developed after the date of the selection pursuant to an Agreement between PHA and the owner for use under the PBV Program shall be considered new construction units. 2.6 Prohibition of Excess Public Assistance A subsidy layering review shall be conducted to prevent excessive public assistance for the housing by combining (layering) project based voucher assistance with other governmental housing assistance from federal, state or local agencies. A subsidy layering review will be conducted to assure that the requested PBV assistance is in accordance with HUD subsidy layering requirements. Owners shall certify that the project has not received and will not receive (before or after the HAP contract) any public assistance for acquisition, development or operation of the housing other than the assistance disclosed in the subsidy layering review. 2.7 Limitation of PBV Units Under this RFP, PHA will provide Project Based Vouchers for up to 25% of the total units in a project. PHA shall have the option of providing PBV s for more than 25% of the total units if the project serves elderly, disabled households or provides supportive services for families. 2.8 Site Selection Standards In approving sites for PBV assistance, PHA will assure that the location of the site is consistent with the goal of de-concentrating poverty and expanding housing and economic opportunities consistent with RAD requirements The general standard to be used by PHA will be that the poverty rate for the zip code which the property is located is less than the poverty rate for the zip code for Taft Homes. PHA will consider properties in areas with a higher poverty rate than Taft Homes if they are located in an area that meets one or more of the criteria below. 5 PHA RAD PBV Solicitation
1) The property is located in an area that is a HUD designated Enterprise Zone, Economic Community, or Renewal Community. 2) The area where the project is located has undergone or is undergoing significant revitalization. 3) New market rate units have been or are being developed in the area of the project. 4) There has been an overall decline in the poverty rate in the past five years of at least 5%. 5) There are meaningful opportunities for educational and economic advancement in the census tract. Sites for all housing types must meet the following additional criteria: 1) Site must be adequate in size, exposure and contour to accommodate the number and type of units proposed. 2) Adequate utilities and streets must be available to serve the site. 3) The location must promote greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high number of low income persons. 4) The site must be accessible to social, recreational, educational, commercial and health facilities and services. 5) Municipal and other public services must be equivalent to those typically found in neighborhoods consisting largely of unassisted standard housing of similar marker rents. 6) Be located so that travel times and costs via public transportation or private automobile from the neighborhood to place of employment providing a range of jobs for low income persons is not excessive. Sites for new construction properties must meet the criteria above and must not be located in an area of minority concentration or a racially mixed area if the project would cause a significant increase in the proportion of minority to non-minority residents in the area. 2.9 Environmental Review All properties selected for Project Based Voucher assistance are subject to the HUD environmental regulations 24CFR Parts 50 and 58. PHA will make every effort to have the local Responsible Entity (unit of local government, county or state) complete the environmental review certification. 2.10 Establishment of Initial Rents Initial rents for the RAD Project Based Voucher units are estimated at the amounts reflected in the chart below. 6 PHA RAD PBV Solicitation
BR SIZE CHAP RENT ESTIMATED INITIAL RAD RENTS 2017 OCAF REVISED RENT ESTIMATED UTILITY ALLOWANCE GROSS RENT 1 $488 1.015 $495 $75 $570 2 $626 1.015 $635 $90 $725 3 $810 1.015 $822 $115 $937 4 $967 1.015 $982 $130 $1,112 5 $1,112 1.015 $1,129 $145 $1,274 2.11 Rehabilitation Work and New Construction Requirements A. Construction Plans The owner will be required to prepare work write ups, construction specifications and plans upon request as determined appropriate by PHA for rehabilitation and new construction projects. In addition, new construction projects require certification by a design architect that the proposed new construction reflected in the working drawings and specifications complies with housing quality standards, local codes and ordinances and zoning requirements. The owner is responsible for selecting a responsible contractor for rehabilitation and new construction and said contractor must provide PHA with a nondebarment certification. 2.12 Housing Assistance Payments Contract A. Term of Contract Upon acceptance of the units by PHA, a Housing Assistance Payments contract and a RAD Rider to the HAP Contract will be executed in the format prescribed by HUD (52530-A). PHA will execute all RAD PBV HAP contracts for a minimum period of 15 years and at its sole discretion may approve an initial term for up to 20 years. In accordance with RAD requirements, PHA must offer and the owner must accept any renewal of the HAP contract. B. Rent Adjustments The RAD HAP contract will provide for annual adjustment of the rental amounts. Adjustments of rents will be subject to the HUD published OCAF adjustment provided that the rents charged for the RAD PBV units are comparable to unassisted units in the rental market. 7 PHA RAD PBV Solicitation
2.13 Tenant Selection A. Waiting List All existing tenants at Taft Homes will have a first right of refusal for any unit receiving a RAD Project Based Voucher. PHA will work with Taft Residents to provide various other housing options such as Tenant Based Vouchers and Residents will be provided support to make an informed choice about their future housing opportunity. PHA will maintain separate waiting lists for properties with Project Based Vouchers. Applicants will be offered a unit at the Property to which they applied as they reach the top of the list and units are available. If an applicant rejects a PBV unit, they will be removed from the waiting list for that property but will retain their place on any other PHA waiting lists. B. Choice Mobility After one year of occupancy in a RAD PBV unit, a tenant may request a Tenant Based Voucher (TBV). PHA will maintain a waiting list for RAD Choice Mobility based on the date of receipt of the request from the tenant and will provide the next available voucher to the family at the top of the list. 2.14 Ongoing Activities A. PHA Responsibilities PHA shall administer the RAD PBV program in accordance with all other provisions under the RAD requirements and the Housing Choice Voucher program including issuing of monthly HAP payments and annual re-certification of household composition and income. Housing Quality Standards inspections shall be conducted as required for PBV units at the time of the anniversary date of the Project Based Housing Assistance Payments (HAP) contract. The Housing Authority may at its option and based on the historical results of inspections make a determination to inspect only a percent of units under the PBV contract and/or to conduct HQS inspections less frequently. B. Owner Responsibility The owner is responsible for managing the units in accordance with all requirements under the approved management plan, the Housing Assistance Payments contract, the RAD Rider to the HAP contract and the RAD Use Agreement. 8 PHA RAD PBV Solicitation
3.1 SUBMISSION CRITERIA SECTION 3 RFP RESPONSE FORMAT Submissions shall be provided in the following format, on a flash drive with cover pages clearly identifying each section. Brevity with respect to submissions is strongly encouraged. Emphasis should be placed on conformity to PHA s instructions, requirements of this RFP and completeness and clarity of content. Project Based Vouchers will be awarded to properties in order of date received provided the property meets all criteria set forth below. Proposals will continue to be received until such time that PHA has identified sufficient properties to locate all RAD transfer of assistance units from Taft Homes. PHA reserves the right to reject any or all proposals. Project Overview The Owner/Developer must provide an overview identifying the project location and unit structure breakdown for the PBV units, and the service provider. If any section is not applicable, please include a reference to the section and indicate that it is not applicable. SECTION DESCRIPTION 1 Brief narrative of Owner/Developer Experience. 2 Brief narrative Management Team and Management Plan. 3 4 5 Description of Site and Neighborhood including poverty rate for zip code in which Site is located; if new construction, evidence of Site control, Zoning, Site Accessibility and Utility Availability. Description of property including ownership structure, date built, history of recent capital improvements, amenities and other relevant information. Unit Schedule including bedroom size; unit restrictions (30%/50% LIHTC units); current rent and utility allowances (if applicable); and units to be designated as Project Based Voucher units. If a LIHTC property, statement that owner is willing to enter into a control agreement with PHA as described in Section 1.3. If an existing property, copy of current rent schedule; rent roll and income and expense statements for year ending 12/31/2016; if substantial rehabilitation or new construction, detailed pro-forma with rent schedule; sources and uses statements and 15-year cash flow statement. 9 PHA RAD PBV Solicitation
6 Relocation Plan (if applicable). 7 Evidence of Supportive Services (if more than 25% of total units in project serving families). 8 Other relevant information. Section 1 - Owner/Developer Experience PHA will evaluate the previous experience of the Owner/Developer in developing/owning rental properties with an affordable housing component The Proposed Owner (individual, corporation, or in the case of a limited partnership, the general partner(s) of the Ownership entity) must demonstrate at least three (3) continuous years (development through lease-up) of prior ownership experience in at least two (2) multifamily rental housing projects of similar size (number of dwelling units) to the proposed project. Only successful ownership experience that occurred subsequent to January 1, 2000 will be considered. Please describe the Owner/Developer s experience in working with the proposed housing program and housing type. Please indicate whether the Owner/Developer has ever experienced a foreclosure or bankruptcy. If the Owner/Developer or management agent has previous experience with the low-income housing tax credit program, or HUD programs, describe any unresolved audit findings (IHDA, HUD, or other). The minimum qualifications to receive a passing evaluation are: The Owner/Developer has demonstrated at least three (3) continuous years (development through lease-up) of prior ownership experience in at least two (2) multifamily rental housing projects of similar size (number of dwelling units) to the proposed project. The Owner/Developer has not experienced a foreclosure or bankruptcy in the last three (3) years. The Owner/Developer or management agent has no unresolved HUD or State or other compliance agency audit findings. Section 2 - Management Team and Management Plan The Respondent must demonstrate the experience of the property management team in managing at least two (2) rental properties of a similar size including an affordable housing component within the past five (5) years; identify all factors associated with the success of the management team regarding the affordable housing project; include a description of the management team along with resumes of key personnel and their experience in managing properties of a similar size and type and submit a proposed management plan that will be evaluated on the basis of its completeness, sound policies and procedures, and demonstration that the property will be managed in accordance with professional standards and approaches. 10 PHA RAD PBV Solicitation
The proposed management plan must detail the project management approach including, but not limited to, the subcontractor selection, oversight field supervision and project execution. The minimum qualifications to receive a passing evaluation are: The proposed Management Entity must demonstrate prior experience in the management of at least two (2) affordable multifamily rental housing projects of similar size (number of dwelling units) and scope to the proposed project. To be considered, the manager s experience with a project must extend for at least two (2) years and include project lease-up experience and stabilization (90% occupancy within one year of placed in service date if the project received tax credits). Only Management experience that occurred subsequent to January 1, 2000 will be considered. A complete management plan that demonstrates sound policies and procedures and demonstrates that the property will be managed in accordance with professional standards and approaches recognized in the industry. Section 3 - Site and Neighborhood Standards The property is located in an area in which the poverty rate for the zip code is less than the poverty rate for the zip code for Taft Homes. PHA will consider properties in areas with a higher poverty rate than Taft Homes if they are located in an area that meets one or more of the criteria below. 1. The property is located in an area that is a HUD designated Enterprise Zone, Economic Community, or Renewal Community. 2. The area where the project is located has undergone or is undergoing significant revitalization. 3. New market rate units have been or are being developed in the area of the project. 4. There has been an overall decline in the poverty rate in the past five years of at least 5%. 5. There are meaningful opportunities for educational and economic advancement in the census tract. Sites for all housing types must meet the following additional criteria: 6. Site must be adequate in size, exposure and contour to accommodate the number and type of units proposed. 7. Adequate utilities and streets must be available to serve the site. 8. The location must promote greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high number of low income persons. 9. The site must be accessible to social, recreational, educational, commercial and health facilities and services. 10. Municipal and other public services must be equivalent to those typically found in neighborhoods consisting largely of unassisted standard housing of similar marker rents. 11 PHA RAD PBV Solicitation
11. Be located so that travel times and costs via public transportation or private automobile from the neighborhood to place of employment providing a range of jobs for low income persons is not excessive. Sites for new construction properties must meet the criteria above and must not be located in an area of minority concentration or a racially mixed area if the project would cause a significant increase in the proportion of minority to non-minority residents in the area. Section 4 Property Condition and Ownership Structure The ownership of the property, if not a Low-Income Housing Tax Credit property, is owned by a non-profit or public entity. If a Low-Income Housing Tax Credit property, the owner is willing to enter into a Control Agreement as described in Section 1.3 of this solicitation. Section 5 Financial Viability If an existing property, the financial statements indicate that the property has operated with a positive cash flow including payment of all debt and funded all required reserves. If a substantial rehabilitation or new construction project, the property demonstrates financial viability and has secured lender and/or equity commitments as stated in the project sources. Section 6 Relocation Plan If relocation of existing residents will be required, the Relocation Plan complies with all provisions of the Uniform Relocation Act (URA); all relocation will be temporary or voluntary permanent relocation and no permanent displacement will occur as a result of the project. Section 7 Supportive Services If the proposal is requesting Project Based Vouchers for more than 25% of the total units in a family project, the supportive services for the project are meaningful, on-going and adequately funded in the operating budget or through commitments from community service providers. Section 8 Other Project Information This section is optional. If not submitting any additional information, please indicate that no further information is provided. 12 PHA RAD PBV Solicitation
SECTION 4 SUBMISSION REQUIREMENTS 4.1 Submission of Project Proposals A. The flash drive for responses shall be enclosed in an envelope, sealed and clearly labeled identifying the housing program: Existing, New Construction, or Substantial Rehabilitation as follows: RFP RESPONSE DOCUMENTS Name of Respondent RAD Project-Based Rental Assistance B. All Project Proposals transmitted by mail or hand delivered shall be addressed with the same information to: PEORIA HOUSING AUTHORITY Attention: RAD 100 S. RICHARD PRYOR PLACE PEORIA, ILLINOIS 61605-3905 C. Submittal of Project Proposals addressed other than the manner described above in Section 4.1.B. may result in the rejection of the proposal as being nonresponsive. D. Submittal of Project Proposals by facsimile or email transmission is not acceptable, and any Project Proposal so transmitted will be rejected as nonresponsive. E. Each Project Proposal and all materials submitted to PHA in response to this RFP shall become the property of PHA. Selection or rejection of a Project Proposal does not affect this right. 5.1 Schedule of Events SECTION 5 SCHEDULE AND COMMUNICATIONS The following Schedule of Events represents PHA s best estimate of the timetable that will be followed. EVENTS Submission Period for Project Proposal Deadline for Questions and/or Comments TIMEFRAME The Project Proposal (as defined below) may be submitted during normal business hours (Monday through Friday, 8:00 A.M. 4:30 P.M.) beginning January 30, 2017. Any questions may be submitted at anytime but will be responded to only once each month by the 15 th day of that month. 13 PHA RAD PBV Solicitation
Project Proposal Evaluation Period Execution of Commitment Letter Termination of Receipt of Proposals. The proposal evaluation period includes a review of all documentation submitted in the proposal and an optional site visit to the property to be conducted by PHA at their sole discretion. Once the Owner/Developer s Project Proposal has been reviewed and is determined to meet all requirements set forth in this RFP, PHA will issue a preliminary commitment letter provided RAD voucher are available. PHA will make every effort to execute a Commitment Letter to approved properties within 120 days of receipt of property proposals Upon PHA approval of sufficient units to meet the RAD transfer of assistance for all units at Taft Homes, PHA will publicly advertise the closing of this solicitation. NOTE: PHA reserves the right at its sole discretion to adjust this Schedule of Events as it deems necessary. If necessary, PHA will communicate adjustments to any event in the Schedule of Events in the form of an addendum to this RFP. 5.2 Submission Requirements All Respondents submitting a Project Proposal agree to honor the terms and conditions contained within this document. PHA anticipates making awards to multiple Owners/Developers of projects under this RFP. PHA reserves the right to terminate this RFP at any time throughout the solicitation period. 5.3 Communications In order to maintain a fair and impartial competitive process PHA shall avoid private communication concerning this procurement with prospective Respondents during the entire procurement process. The PHA requests that each potential Respondent respect this policy and refrain from attempting to query PHA personnel regarding this RFP. Questions must be submitted in writing via e-mail to the attention of Pamela Pesha- Ahten via email at PPesha-Ahten@pha.peoria.il.us Responses to these questions will be addressed in writing and issued as an addendum to this RFP. 6.1 Responsibility Determination SECTION 6 AWARD After the PHA evaluates a Project Proposal, Respondents may be asked to submit additional information. Failure of the Respondent to provide such additional information within the allotted time may render the Respondent ineligible for award. PHA shall make an assessment of the Respondent s responsibility and determine whether the Respondent is capable of undertaking and completing the RFP scope of work delineated within this RFP in a satisfactory manner. PHA will issue a Commitment Letter only to responsible Respondents that have the ability to successfully perform under the terms of this RFP. PHA s determination will include an assessment of the Respondent s technical resources/ability to perform the scope of work in accordance with the RFP requirements. 14 PHA RAD PBV Solicitation
The responsibility determination also includes consideration of a Respondent s integrity, compliance with public policy, past performance with PHA (if any) and eligibility to perform government work (e.g., debarment/suspension from any Federal, State, or local government). 7.1 Commitment Letter SECTION 7 FORM OF CONTRACT Once the project has been approved by PHA, a Commitment Letter will be issued evidencing PHA s intent to provide RAD PBV to the property. The Commitment Letter will set forth an expiration date, identify the estimated monthly contract rents, as well as identify the number and type of units for which assistance will be provided and other pertinent information. 7.2 RAD PBV Agreement PHA will enter into a RAD HAP contract upon HUD approval of the RAD Transfer of Assistance and closing of the RAD transaction. 8.1 Term of Contract SECTION 8 HAP CONTRACT REQUIREMENTS The initial term of the RAD PBV Agreement shall be for a minimum of 15 years and may be up to 20 years. 8.2 Labor Compliance The Davis-Bacon Act requires the payment of prevailing wage rates (as determined by the Department of Labor) to laborers and mechanics on Federally-assisted construction projects in excess of $2,000. Also, pursuant to 24 CFR 983.154, the Owner/Developer s contractors and subcontractors must pay Davis-Bacon wages to laborers and mechanics employed in the development or rehabilitation of the housing (with nine or more contract units) using PBV. The following relates to the wage determination: A. NEW & SUBSTANTIAL REHABILITATION 1. Residential - Less than four (4) stories Pursuant to Title 29 CFR Parts 1.5 and 1.6(b), a Residential wage determination is issued for this construction project. Residential wages apply to new and substantial rehabilitation of single-family homes and apartment buildings of less than four (4) stories. 15 PHA RAD PBV Solicitation
Accordingly, the wages of laborers and mechanics will be monitored for compliance with labor standards. 2. Building - More than four (4) stories Pursuant to Title 29 CFR 1.5 and 1.6(b), a Building wage determination is issued for this construction project. Building wages apply to new and substantial rehabilitation of structures of more than four (4) stories, typically warehouses, machinery and equipment storages facilities etc. Accordingly, the wages of laborers and mechanics will be monitored for compliance with labor standards. Owners/Developers bear the responsibility of ensuring that the appropriate wage decision is included with the Project Proposal. As referenced above, the construction type for this RFP is either Residential or Building. No other construction categories apply. Davis-Bacon wage decisions may be accessed via the below-referenced link: http://www.wdol.gov/dba.aspx#3. Uniform Relocation Act (49 CFR Part 24) - Any person displaced due to the conversion of any housing unit to PBV must be provided relocation assistance at the levels described in and in accordance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Act (URA). The cost of the required relocation is the responsibility of the Owner. Housing Quality Standards Existing properties must be in compliance with the federal Housing Quality Standards prior to the proposal selection date. Rehabilitation properties must be in compliance with the HQS standards prior to execution of the PBV Agreement. Respondents may submit a request for inspection for all existing properties a minimum of 15 days prior to the proposal due date. PHA will conduct an inspection of the proposed property and advise the respondent if the property will qualify as an existing property. SECTION 9 ADMINISTRATIVE TERMS AND CONDITIONS 9.1 Cancellation of Solicitation PHA reserves the right to cancel this solicitation where it is determined to be in the best interest of PHA to do so. 9.2 Modification of Solicitation PHA reserves the right to increase, reduce, add or delete any item to this solicitation as deemed necessary where it is consistent with PHA s policies to do so. 16 PHA RAD PBV Solicitation
9.3 Modification of Contract PHA reserves the right to increase or delete any scheduled items and/or increase or reduce the quantity of any scheduled item as deemed necessary, to award portions of this RFP, to waive informalities and technicalities and to make awards consistent with PHA s policies and the laws and regulations governing HUD programs as may be amended by the PHA/HUD Moving to Work Agreement. 9.4 Rejection of Proposals PHA reserves the right to reject any and all Project Proposals where it is determined to be in the best interest of PHA to do so. 9.5 Ownership of Documents All documents and information generated, prepared, assembled or encountered by or provided to PHA pursuant to this RFP are the property of PHA. Award or rejection of a proposal does not affect or change PHA s ownership rights. Respondents shall not copyright, or cause to be copyrighted, any portion of any said document submitted to PHA as a result of this RFP. 9.6 Cost of Proposals All costs incurred, directly or indirectly, in response to this solicitation to include the preparation, submittal or presentation of the Project Proposal, shall be the sole responsibility of, and borne by, the Respondent. 9.7 Standards of Conduct The selected Respondent shall be responsible for maintaining satisfactory standards of its employees competency, conduct, courtesy, appearance, honesty and integrity and shall be responsible for taking such disciplinary action with respect to any of its employees as may be necessary. 9.8 Project Reconfiguration/ Application Modification Applicants will not be allowed to make any changes to the Application after submission to PHA and prior to issuance of the Commitment Letter without PHA s consideration. Subsequent to receiving the Commitment Letter, Applicants will generally not be allowed to make any changes to the Application. However, once a project is approved by PHA, if Applicant believes extenuating circumstances warrant a change, and the change would not significantly alter the project s original concept, a written request for such a change will be considered by PHA. However, changes cannot be made without PHA s written approval, and such approval will be at PHA s sole and absolute discretion. This provision applies to any changes proposed after issuance of the Commitment Letter and, if a PBV Agreement is provided, throughout the term of the Agreement. Applicant s written requests must clearly establish the importance of the changes, and why it is necessary to ensure the project s long-term financial feasibility and economic viability. 17 PHA RAD PBV Solicitation
PHA will determine at its sole and absolute discretion whether or not a requested change will be authorized. The prohibition against changing any part of the Application without the prior written approval of PHA includes direct or indirect transfers of the General Partner s or Developer s interest. Failure to abide by this provision will adversely affect PHA s commitment to the project. 10.1 Advertising SECTION 10 SPECIAL CONTRACT REQUIREMENTS In submitting a Project Proposal, Respondent agrees not to use the results from it as a part of any commercial advertising. PHA does not permit Contractors to advertise or promote the relationship with PHA in the course of marketing efforts unless PHA specifically agrees otherwise. 10.2 Compliance with Law Non-Discrimination and Other Federal Requirements. The Owner/Developer will comply with all applicable requirements of the following as the same may be amended from time to time: (a) The Fair Housing Act, 42 U.S.C. 3601-19, and regulations issued thereunder, 24 CFR Part 100; Executive Order 11063 (Equal Opportunity in Housing) and regulations issued thereunder, 24 CFR Part 107; and the fair housing poster regulations, 24 CFR Part 110, and advertising guidelines, 24 CFR Part 109; (b) Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d, and regulations issued thereunder relating to non-discrimination in housing, 24 CFR Part 1; (c) Age Discrimination Act of 1975, 42 U.S.C. 6101-07, and regulations issued thereunder, 24 CFR Part 146; (d) Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794, and regulations issued thereunder, 24 CFR Part 8, including the Uniform Federal Accessibility Standards, 24 CFR Part 40, App. A; Title II of the Americans with Disabilities Act, 42 U.S.C. 12101 et seq., and regulations issued thereunder, 28 CFR Parts 35 and 36; the Architectural Barriers Act of 1968, 42 U.S.C. 4151-4157; and Section 109 of the Housing Community Development Act of 1974 (Section 109), 42 U.S.C. 5301 et seq., and regulations issued thereunder, 24 CFR 570.601 and 570.602; and (e) Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u, and its implementing regulations at 24 CFR Part 135. (f) Any other law, regulation or rule that may be applicable. 18 PHA RAD PBV Solicitation
10.3 Conflicts of Interest The Respondent certifies that neither he/she nor any of his/her subcontractors include persons who have an interest, direct or indirect, in this proposed contract and who during his/her tenure or for one (1) year thereafter are: (i) A present or former member or officer of PHA's Board of Commissioners or any member of the officer's immediate family. This prohibition does not include any present or former tenant commissioner who does not serve on the governing body of a resident corporation, and who otherwise does not occupy a policy-making position with the resident corporation, PHA or a business entity. (ii) Any PHA employee who formulates policy or who influences decisions with respect to PHA s project(s) that are connected to this proposed contract, or any member of the employee's immediate family or the employee's partner. (iii) Any public official, member of the local governing body or State or local legislator or any member of such individuals' immediate family. (iv) A member of or delegate to the Congress of the United States of America or a resident commissioner (defined as an individual appointed to oversee a territory or possession of the United States of America, such as Guam). NOTE: "Immediate family" member means the spouse, mother, father, brother, sister, or child of a covered class member whether related as a full blood relative, or as a "half" or "step" relative (e.g., half-brother or stepchild). 10.4 Disclosures and Certifications Prior to award, and at all times that Respondent is conducting business with PHA, Respondent is required to disclose any direct or indirect conflicts of interest and any organizational conflicts of interest as soon as such conflict becomes known or should have become known. Respondents with a conflict of interest must provide a full and complete disclosure, in writing, to the Executive Director. The Disclosure Statement must be presented on Respondent s letterhead, notarized and signed by the individual making the disclosure. 10.5 Certification Regarding Debarment The Respondent certifies by submission of its proposals that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by a Federal department or agency. All Respondents are required to submit a Disclosure Statement if this is not the case. 10.6 Respondent s Status The Respondent and its agents will be held to be an independent Contractor and will not be an employee of PHA. 19 PHA RAD PBV Solicitation
10.7 Funding Limitations This procurement may be funded, in whole or in part, by grant funds provided by HUD. PHA will not be bound to any Commitment Letter, PBV Agreement or other contract under this RFP if funding has been disallowed by HUD. 10.8 Government Restrictions In the event any governmental restrictions may be imposed which would necessitate alteration of the material, quality, workmanship or performance of the goods or the material and/or quality, workmanship or performance of the goods or services offered, it shall be the responsibility of the successful Respondent to immediately notify PHA in writing specifying the regulation which requires an alteration. PHA reserves the right to accept any such alteration including any reasonable price adjustments occasioned thereby or to terminate the contract at no expense to PHA. 10.9 Indemnification PHA is defined in this Section to include PHA Commissioners, officers, employees, agents and/or assigns. To the fullest extent permitted by law, Contractor agrees to indemnify PHA and hold it harmless from and against any and all claims, damages, losses or expenses, including reasonable attorney fees, arising out of or in the performance of the Services by Contractor, a subcontractor or anyone directly or indirectly employed by them or anyone for whose acts they may be liable regardless of whether or not such claim, damage, loss or expense is caused in part by a party indemnified hereunder. Contractor s indemnification obligation shall not be limited by a limitation on amount or type of damages, compensation or benefits payable by or for the Contractor or subcontractor under any insurance required by the contract including workers compensation acts, disability benefit acts, other employee benefit acts or any other insurance. PHA cannot, and by the agreement resulting from this RFP does not, agree to indemnify, hold harmless, exonerate or assume the defense of the Respondent/Contractor or any other person or entity whatsoever, for any purpose whatsoever. 20 PHA RAD PBV Solicitation