The City of Waltham Municipal Affordable Housing Trust Fund (the Trust) Invites Interested Parties To respond with the best proposal For the service or product herewith described: The Creation, Renovation, Rehabilitation of Affordable Housing Units for Rent or for Sale within the City of Waltham Proposal Due: 10:00 AM Friday June 26, 2015, An Informational Meeting Held: 10:00 AM Thursday June 18, 2015 (Meet in the Council Chamber of the Waltham City Hall 610 Main Street, Waltham, MA 02452) Last day for written questions: 12 Noon Friday June 19, 2015 (To Jpedulla@city.waltham.ma.us) 1
Affordable Housing Project Request For Proposals (RFP) City of Waltham, Municipal Affordable Housing Trust Fund I. Purpose The City of Waltham (the City ) Housing Division is seeking proposals from individuals for projects that create, repair or preserve affordable rental or owner occupied housing for low income households in the City. Preference shall be given to those projects that ensure that the Assisted Units remain affordable for the longest period possible. The City is utilizing funds from the Affordable Housing Trust Fund (AHTF) to provide developers increased financial capacity to meet necessary project development costs. Funds will be targeted to specific units that meet the income and rent restrictions further described in this RFP. The City is particularly interested in projects that provide for the greatest level of affordability. Projects funded by the AHTF shall be disbursed throughout the City so no single neighborhood experiences a disproportionate concentration of housing units for low income households. The purpose of the AHTF is to meet the housing needs of lower income households within the City by: Increasing homeownership opportunities for low income households (less than or equal to 60% of area median income (AMI)); Expanding the number of affordable rental units and/or improving the quality and/or diversity of units available to lower income households (less than or equal to 60% of AMI) throughout the community. The City is particularly interested in proposals that meet the following objectives: Affordable housing with a preference for Veterans, Persons over the age of 55, and First Time homebuyers. Assist or create housing in areas of the City characterized by poor quality housing, high cost housing or negative neighborhood image; Assist or create affordable workforce housing that is in reasonable proximity to employment centers and transportation; Reduce the number of individuals who are homeless due to a lack of affordable permanent housing options, particularly single room occupancy (SRO) units for single individuals. 2
II. Funding The amount that will be made available is $1,600,000. A minimum of 60% of the funds must be utilized for households with incomes less than or equal to 60% AMI. Funds will be disbursed as follows: $375,000 is the maximum amount that will be approved for any project; $150,000 is the minimum amount that will be approved for any project. The funds made available will be in the form of an interest free deferred loan. The terms of the loan will be for 30 years with a Deed Restriction being placed on the property for the same term. The property must be affordable for the full 30 years. The interest free deferred loan will be forgiven over the thirty year period. III. Requirements/Scope of Service City staff will expect the applicant to have the capacity to exercise independent judgment and to perform those actions necessary to achieve the project objectives. While the applicant will be working under the general direction of the Housing Division, it should be understood the City has limited professional staff capacity to support the project and will rely on the personnel, experience and expertise of the applicant to ensure all necessary components of the housing project are completed in a timely manner. Developers are asked to complete the Affordable Housing Trust Fund Application to describe the details of the proposed project. All projects should meet the requirements outlined in the Scope of Services outlined below. Scope of Service includes but is not limited to the following: 1. Owner Occupied Housing a. Proposal for owner occupied housing must meet at least one of the two objectives listed on pages 1 and 2. b. Single family housing must be created, preserved or repaired for households with income at or below 60% AMI. c. Funds may be used only for housing units that do not exceed the HOME purchase price or value limit designated by the Federal Department of Housing and Urban Development (HUD). d. Staff will evaluate all proposals based on the project s contribution to increase the affordable housing stock, upon project need, and availability of resources to determine the appropriate level of funding. e. Projects should incorporate energy efficient features into the design. f. A minimum of 85% of the AHTF funds received shall be applied to design, engineering, or capital costs including acquisition, rehabilitation or labor and 3
materials. A maximum of 15% of the total AHTF funds received may be applied to staffing and other soft costs. g. Projects may not exceed total secured funds to value ratio greater than 115%. Housing sold to income eligible buyers may not exceed a loan to value ratio of 100%. h. Housing must be kept income restricted for a minimum of 30 years. The project will be deed restricted during the period of restriction. i. The Housing Division shall secure its funding for capital costs with a promissory note and a mortgage in the form of a non recourse loan. j. Housing (after rehab) shall comply with all applicable City minimum housing and building codes. 2. Rental Housing a. Housing must be created, repaired or preserved for households with income at or below 60% AMI whose rent is no more than 30% of gross income of a household at 60% AMI including utilities. b. Housing must be kept affordable and be income restricted for at least 30 years. c. Housing (after rehab) shall comply will all applicable City minimum housing and building codes. d. Staff will evaluate all proposals based on the project s contribution to increase the affordable housing stock, upon project need, and availability of resources to determine the appropriate level of funding. e. Projects should incorporate energy efficient features into the design. f. Newly constructed housing will be: i. Located in areas of the city which do not have a high concentration of lower income housing, or ii. Part of a larger neighborhood revitalization effort. g. Projects may not exceed total secured funds to value ratio greater than 115% from all sources. h. A minimum of 85% of all AHTF funds received shall be applied to design, engineering, or capital costs including acquisition, rehabilitation or labor and materials. A maximum of 15% of the total AHTF funds received may be applied to staffing and other soft costs. i. The Housing Division shall secure its funding for capital costs with a promissory note and a mortgage in the form of a non recourse loan. 4
Program Requirements 1.0 Eligible Applicants. Non institutional individuals seeking to own or rent a home and who are First time home buyers, Senior Citizens 55 years of age and older and Veterans. First Priority is given to Waltham Residents of record in the selection of the subsidy recipients. 1.1. Eligible Activities The Municipal Housing Trust Fund (TRUST), with a current balance of $1.6M, seeks applicants who are First Time Buyers or Seniors 55 years of age and older or Veterans for the creation of housing units for sale or rent including housing rental, acquisition, moderate rehabilitation, substantial rehabilitation, new construction projects of 1 4 family housing units already zoned for housing. The Trust will subsidize the project(s) based on meeting the individual qualifications and requirements of this solicitation. All proposals must include adequate parking on site for all individual units prior to development and shall conform with the City of Waltham Ordinance Chapter 24 (attached) and City Zoning Ordinances. Twenty five percent (25%) of the properties developed must provide affordable housing to a household that has an income level at Sixty percent (60%) of the area median income AMI. This applies to both homeownership and rental housing for an affordability period of no more than thirty (30) years. 1.2. Eligible Properties Proposals must be for one to four units; single to four family properties, duplexes, apartment complexes up to four units, condominiums and clustered or scattered site single homes. 1.3. Eligible Production Costs Funds may subsidize all reasonable, justifiable and necessary development costs, including: Hard costs: acquisition of property; site improvements; demolition; rehabilitation; and construction. Soft costs: architectural and engineering fees; cost estimating fees; loan origination and processing fees; appraisal and credit report fees; legal and accounting costs; title and recording fees; relocation costs; marketing costs; and developer fees. 1.4. Income Limits: The following income limits are for the Boston Cambridge Quincy Metropolitan Statistical Area and are based on percentages of Area Median Income (AMI), with adjustments made for household size: Household Size 60% of AMI 50% of AMI 30% of AMI 1 $41,400 $34,500 $20,700 2 $47,280 $39,400 $23,650 3 $53,220 $44,350 $26,660 4 $59,100 $49,250 $29,550 5 $63,480 $53,200 $31,950 6 $68,580 $57,150 $34,300 7 $73,320 $61,100 $36,650 8 $78,060 $65,050 $39,050 5
1.5. Property Standards, Construction New Construction Projects and Rehabilitation projects must meet, at a minimum, all applicable local building codes, address deficiencies to major systems, including structural support; roofing; weatherproofing; plumbing; electrical; and heating, ventilation and air conditioning. Rehabilitation work must also immediately address life threatening deficiencies if the housing is already occupied (e.g., lead paint abatement if child six or under has a documented elevated blood level, no hot running water, blocked plumbing, broken boiler, or presence of mold). All eligible projects must be able to obtain occupancy permits before funding is release. 1.6. Affordability Period New Construction Projects and Rehabilitation Projects must maintain compliance for not less than thirty (30) years. The thirty (30) years restriction is a condition of the funding and will be entered and recorded into the property deed. 1.7. Subsidy Limits Limits on the amount of funds that can be used for Projects on a per unit basis. The minimum Allocation is One Thousand Dollars ($1,000). The Maximum Per Unit allocations are as follows: Minimum $150,000 if eligible, Maximum $375,000 if eligible. 1.8. Environmental Review, Accessibility Projects must comply with environmental review completed by the City of Waltham Planning Department, the Federal Lead Paint Rule and the Massachusetts Lead Based Paint Poison Prevention Act. 2. HOMEOWNERSHIP PROJECTS 2.1. Income Limits for Target Beneficiaries The beneficiaries of the project must be households whose income is at or below 60% of area median income (AMI) adjusted for household size. 2.2. Deed Restrictions Units developed under the Program as assisted units will be subject to a deed restriction. The term of the deed restriction will be up to thirty (30) years. 6
2.3. Sale Price Limitations Sale price limitations assume a 30 year fixed rate first mortgage at 4% interest with the homebuyer having a 5% down payment, paying PMI. If the purchase unit is a condominium unit the condo fee would apply to the calculation and these assumptions would change. Unit size PRICE LIMITATION Household size Household Income 1 bedroom $174,500.00 1 2 persons $47,280 2 bedroom $196,500.00 2 3 persons $53,220 3 bedroom $234,400.00 3 5 persons $63,480 4 bedroom $253,200.00 4 6 persons $68,580 2.4. Zoning The use of the subject property is subject to the Zoning Ordinance of the City of Waltham. 2.5. Inspections All improvements for the property must be approved by the Building Inspector of the City of Waltham prior to the commencement of any work and shall be at Buyer's sole cost and expense. 2.6. Property Insurance Proposer will be required to purchase and maintain fire insurance with responsible companies qualified to do business in Massachusetts and in good standing for full replacement value of the property. Buyer will be required to present a certificate of insurance at closing and maintain said insurance coverage. Buyer will be responsible for payment of all premiums. 2.7. Property Assignment Proposer shall not assign its proposal or its rights or sublet any of the premises without prior written consent of the Mayor. Such assignment may only be authorized, in the sole discretion of the Mayor, for a use that is compatible with the public purpose and identified allowed uses of this Request for Proposals. 3. RENTAL PROJECTS 3.0 All assisted rental units will be deed restricted with restrictions on how much rent can be charged for the unit for the term of the deed restriction. Income and the Owner will contact the City s Housing Division for income and rent limits annually. Income limits and rent limits are published annually by HUD. The City will monitor the property annually for compliance with the rent and income limits. Owners will also provide a utility allowance, for RENTAL PROJECTS ONLY, based on the schedule of utility allowances 7
published by the Waltham Housing Authority and a utility allowance will be deducted from the Maximum rent limits. This allowance will be based on the utility s that the tenant is responsible for. All affordable rental units developed with City of Waltham Municipal Housing Trust Funds will have a preference for leasing to Veterans and to all Person(s) over the age of 55 who are within the income limits. 3.1. Rent Restrictions 1. Rents will be restricted to 30% of the Households annual gross income assuming that the income is 60% of median, minus allowances for any tenant paid utilities. 2. Utility allowances will vary based on utilities that must be paid for by the tenant and will be determined by the Utility Allowance Schedule published by the Waltham Housing Authority at the time of leasing. The following rent limits do not include a reduction for a utility allowance. Bedroom Household size Income per household size Maximum rent Efficiency 1 $41,400 $1,035.00 1 Bedroom 2 $47,280 $1,182.00 2 Bedroom 4 $59,100 $1,476.00 3 Bedroom 6 $68,580 $1,721.00 4 Bedroom 8 $78,060 $1,952.00 3.2. Eligible Occupants and Income Targeting Twenty five percent (25%) of the units in the project must be targeted to tenants with incomes at or below 60% of AMI for initial lease up and be monitored annually for compliance with the eligible income guidelines. Households must be income verified for income determination. 3.3. Deed Restrictions A deed restriction will be in effect for the Affordability Period in order to enforce the Funding Agreement, which will be signed between the project owner and the City of Waltham Municipal Housing Trust. The Funding Agreement will describe the rent restrictions, income eligibility requirements, the duration of the Affordability Period and other requirements and project specific information. 3.4. Term of Funding Awards will be provided as a deferred payment, forgivable loan with a terms of 30 years. During the Affordability Period, the affordability requirements will remain in effect regardless of a transfer occurs or the loan is repaid during the term. The loan must be repaid if the property is sold, transferred or otherwise encumbered, or if the terms and conditions of the loan are violated. 3.5. Interest Rate The funding is not a loan and does not entail any interest rates and will have no monthly payments required 8
4. Proposal Submission Checklist and Application Required for All Proposals Check if included Review full instructions on following pages thoroughly to ensure Application cover page application is complete prior to submission. APPLICATION DEVELOPER INFORMATION & QUALIFICATIONS All Proposals All Proposals New construction All Rentals (no more than 4 Units) All As Needed Previous similar projects completed and capacity to undertake project Report of existing housing portfolio, including occupancies, compliance status and cash flows Most recent audited organizational annual financial statement DEVELOPMENT TEAM INFORMATION Contact information (for GC, architect, engineer, management agent, attorney, consultant(s)) PROJECT INFORMATION Evidence of site control (legally binding option, purchase & sale agreement or deed) Zoning and permitting requirements and schedule Map or narrative describing site size, topography, current use Context map, identifying proximity to roads, transit, municipal and health facilities, amenities Color photos (5 to 10), of site and its surroundings Brief property history, including prior uses, owner(s) and occupancy Environmental mitigation plan, including lead paint, asbestos, underground tanks Preliminary site plan Itemized scope of work & cost estimates (may be submitted as part of detailed development budget) Schedule of unit types, by square footage, affordability tier(s), number of bedrooms and bathrooms, accessibility type, amenities provided Timeline, including milestones identified in Proposal Submission Requirements section Description of site Detailed floor plans, elevations Plan and budget for temporary or permanent relocation, if there are existing tenants PROJECT FINANCES Source and Uses Schedule Development Budget, including itemized hard and soft costs Letters of Financial Commitment, from all sources including terms and conditions Stabilized Operating Budget Long term Pro Forma, covering the entire Period of Affordability (see instructions for trending assumptions) Two (2) unbound hard copies of Proposal Certificate of Non Collusion Certificate of Tax Compliance Section 3 Resident Certification(s) 9
Homebuyer APPLICATION (Continues) Mortgage pre approval from a local lender Cost of ownership analysis: including proposed sales prices, owners estimated totals Condo Association Budget, including % beneficial interest assigned to affordable units 10
Project NAME CITY OF WALTHAM AFFORDABLE MUNICIPAL HOUSING TRUST REQUEST FOR PROPOSALS APPLICATION COVER PAGE Project LOCATION Full street address (with zip code), or other precise location. Project CONTACTS Name Email Phone Mailing address Developer Project SIZE Site Acreage: Total building gross square footage: Total living (net) square footage: Project funds requested: $ Total other funds to be used: Total project cost: FUNDING $ $ Project SUMMARY Provide a brief summary of the project, including: Location (amenities within walking distance, access to transit); short summary of details on page 2 (rehabilitation or new construction; type of housing; special features). 11
SOURCES OF FUNDS. $ $ $ $ $ USES OF FUNDS Check all that apply. Acquisition Rehabilitation New construction Redevelopm TARGET POPULATION & SPECIAL FEATURES Check all that apply. Individual/Family/1 st Time Buyer(s) Age Restricted Veteran(s) Special needs/disabilities (identify population & provider of support services, if any): Special features (historic preservation, sustainability, etc.): TYPE OF HOUSING Check all that apply. Homeownersh Rental Combination or other (identify): Condominium Single Family Two Family Three Family OUTREACH Summarize efforts to date to communicate with abutters, neighborhood residents & local officials. 12
Development Team Information General Contractor Name: Address: Contact Person Telephone: ( ) Email: Minority Business Enterprise: Women s Business Enterprise: Section 3 Business Concern: Yes No Yes No Yes No Architect Name: Address: Contact Person Telephone: ( ) Email: Minority Business Enterprise: Women s Business Enterprise: Section 3 Business Concern: Yes No Yes No Yes No Engineer Name: Address: Contact Person Telephone: ( ) Email: Minority Business Enterprise: Women s Business Enterprise: Section 3 Business Concern: Yes No Yes No Yes No 13
Project Information 1. Site Control: Provide evidence of site control e.g., legally binding option, purchase & sale agreement or deed demonstrating the applicant s control of the proposed site. 2. Site Plan and Maps: 3. Historic: 4. Environmental: A narrative and/or a map describing the site s size, topography and current use. Context map(s) identifying the project s location and proximity to nearest major roads or intersections, public transportation, schools, parks, municipal and health facilities, amenities, and surrounding land uses. 5 to 10 color photographs of the project site and its surroundings For new construction: Preliminary site plan illustrating existing conditions and the proposed development Brief property history, including prior uses, owner(s) and occupancy If the site is located in a historic district or contains buildings listed or eligible for listing on the state or federal Register of Historic Places, a description of whether any necessary approvals are underway or completed. If completed, a response letter from the local or Massachusetts Historical Commission to Project Notification Form Describe how any identified environmental issues that impact the site will be mitigated e.g., wetlands, lead based paint, asbestos. Note: After responding to this Request for Proposals, the applicant cannot use public or private funds for any site work or construction purposes until environmental clearance is achieved. 5. Project Design, Construction and Accessibility: If new construction, Preliminary elevations and floor plan(s). Itemized scope of work supported by cost estimates (may be submitted as part of the development budget) Itemize the number of market rate and affordable units by square footages, the number of bedrooms/bathrooms, the number and type of accessible units, and other proposed amenities. Proposed construction and occupancy schedule 14
Describe any sustainability design elements (building orientation, LEED or Energy Star Certification, use of grey water systems, renewable energy, indoor air quality, efficient mechanical systems, etc.) Describe how any common area(s) and the site will provide accessibility. Accessible units must meet the design and construction requirements of Section 504 of the Rehabilitation Act of 1973 (UFAS) the Fair Housing Act and the MA Architectural Access Board and regulations at 521 CMR. Project Financial Information 1. Include all proposed sources (public and private) and all proposed uses. 2. Development Budget, including itemized hard and soft costs, including separate breakout for developer overhead and developer fee. 3. Letter(s) of Financial Commitment: Commitment letters for all sources of financing, including terms and conditions. The Applicant should also certify that if other federal or non federal assistance is sought or obtained while the project is active, that the Member Community will be promptly notified. 4. For Rental Projects Only: Stabilized Operating Budget, identifying all proposed housing related expenses such as utilities (if the tenant pays the utilities), parking and other fees. 5. For Ownership Projects Only: Proposed condominium association annual budget. VII. Evaluation Criteria Applications meeting the Proposal Minimum Requirements will be evaluated on the following criteria: 1. Experience of Applicant and the development team in projects of similar size and type Highly Advantageous: Development Team consists of owner, project manager, licensed and certified architects, engineer(s), contractor(s) and other professionals that have completed two or more financially viable housing projects of a scale and scope similar to current proposal. Advantageous: Development Team consists of owner, project manager, licensed and certified architects, engineer(s), contractor(s) and other professionals that have completed at least one financially viable housing projects of a scale and scope similar to current proposal. 15
Not Advantageous: Development Team has preferred credentials in most, but not all areas of design and construction, and/or has little development experience in a project of a smaller scale than that described in the proposal. Unacceptable: Development Team has no prior experience with like type projects. 2. Financial strength of Applicant to adequately carry out the project Highly Advantageous: The Applicant s current project workload, financial liquidity and existing financial obligations with respect to its current portfolio present no significant risks in successfully carrying out the proposed project. Advantageous: The Applicant s current workload and existing financial obligations with respect to its current portfolio present acceptable risks in successfully carrying out the proposed project. Not Advantageous: The Applicant s current workload and existing financial obligations with respect to its current portfolio present reducible risks in successfully carrying out the proposed project. Unacceptable: The Applicant s current workload and existing financial obligations with respect to its current portfolio present unacceptable risks in successfully carrying out the proposed project. 3. The project s financial feasibility Highly Advantageous: High likelihood that the Applicant has the resources to complete its project in the manner proposed. The proposal clearly demonstrates feasibility during construction and after completion. Costs are reasonable and justifiable and Trust funds represent the minimum amount of subsidy necessary to achieve maximum public benefit. Advantageous: Reasonable likelihood that the Applicant has the resources to complete its project in the manner proposed. Proposal feasibility presents acceptable risks during construction and/or after completion. Costs are reasonable and justifiable and Trust funds represent the minimum amount of subsidy necessary to achieve maximum public benefit. Not Advantageous: Not likely that the Applicant has the resources to complete its project in the manner proposed. Proposal feasibility presents reducible risks during construction and/or after completion. Some costs are not reasonable or justifiable, or the Trust funds represent a larger subsidy than is necessary. Unacceptable: Applicant does not have the resources to complete its project in the manner proposed. Proposal feasibility presents unacceptable risks during construction and/or after completion. Costs are not reasonable or justified, or the Trust funds represent a larger subsidy than is necessary. 16
4. Readiness to proceed and ability to commit funds within six (6) months of award and start construction within twelve (12) months of commitment Highly Advantageous: Applicant has site control, zoning and other approvals are in place, all other funding sources are committed and project designs are completed. Advantageous: Applicant has site control, strong support of zoning and other approvals will be in place, all other funding sources are committed, and project designs are near completion. Not Advantageous: No strong support provided that zoning and other approvals will be in place; project plans are not sufficiently advanced to ensure timely commencement of project upon award. Unacceptable: Applicant does not have site control; evidence of gaining approvals or funding commitments not in place; insufficient project plans. VIII. Project Scoring System Scoring Criteria 1. Experience Points Highly Advantageous.25 points Advantageous.15 points Not Advantageous..10 points Unacceptable 0 points 2. Financial Stability Highly Advantageous.25 points Advantageous.15 points Not Advantageous..10 points Unacceptable 0 points 3. Financial Feasibility of the project Highly Advantageous.25 points Advantageous.15 points Not Advantageous..10 points Unacceptable 0 points 4. Readiness to proceed Highly Advantageous.25 points Advantageous.15 points Not Advantageous..10 points Unacceptable 0 points Total Points awarded: 17
IX. Reservation of Rights The Municipal Affordable Housing Trust reserves the right to extend the deadline for submission of proposals, to request supplementary information, to conduct interviews with any or all of the applicants submitting proposals, to waive minor informalities, and to reject any or all proposals, in whole or in part, if in its sole judgment the best interests of the City would be served in doing so. The Municipal Housing Trust will reject any and all proposals when required to do so by applicable law. X. Questions/Addenda QUESTIONS: Inquiries involving procedural or technical matters shall be in writing to jpedulla@city.waltham.ma.us or at 781 314 3244 no later ` ADDENDA: Each applicant is required to acknowledge any/all Addenda. Applicants shall place their acknowledgment as the first line of their Transmittal/Cover Page. Additional Forms Certificate of Non Collusion Certificate of Tax Compliance 18
NON-COLLUSION FORM AND TAX COMPLIANCE FORM CERTIFICATE OF NON-COLLUSION The undersigned certifies under penalties of perjury that this bid or proposal has been made and submitted in good faith and without collusion or fraud with any other person. As used in this certification, the word person shall mean any natural person, business, partnership, corporation, union, committee, club, or other organization, entity or group of individuals. The undersigned certifies that no representations made by any City officials, employees, entity, or group of individuals other than the Purchasing Agent of the City of Waltham was relied upon in the making of this bid, (Signature of person signing bid or proposal) Date (Name of business) TAX COMPLIANCE CERTIFICATION Pursuant to M.G.L. c. 62C, & 49A,I certify under the penalties of perjury that, to the best of my knowledge and belief, I am in compliance with all laws of the Commonwealth relating to taxes, reporting of employees and contractors, and withholding and remitting child support., Signature of person submitting bid or proposal Date Name of business NOTE Failure to submit any of the required documents, in this or in other sections, with your bid response package may cause the disqualification of your proposal. 19
20
21
22
23
24
25
26