HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY, MARYLAND 10400 Detrick Avenue Kensington, Maryland 20895 May 18, 2017 REQUEST FOR PROPOSAL (RFP) NO. 2068 PROPERTY MANAGEMENT SERVICES for The Barclay Apartments and Fairfax Apartments Proposals Due: June 8, 2018 by 02:00PM Angela McIntosh-Davis Procurement Officer angela.mcintosh-davis@hocmc.org Clarence Landers Contract Administrator clarence.landers@hocmc.org
Introduction: The Housing Opportunities Commission of Montgomery County (HOC) owns, manages and finances multi-family rental properties throughout Montgomery County. HOC s properties represent a wide range of rental unit types, from Class A market-rate units to federally assisted public housing units. Properties that provide a mixture of market-rate and affordable housing units constitute a significant portion of HOC s portfolio, and are generally managed by third-party property management companies with whom HOC contracts. HOC also has a number of properties in its portfolio that receive rental subsidies from the County and State as a result of making units available to low-income tenants. HOC is presently seeking proposals from qualified property management firms (as defined herein) to provide property management services for the multifamily properties as described in Exhibits A and B. The Barclay is a garden style apartment community located in Chevy Chase with 155 units, 74 market-rate and 81 affordable units under the Low Income Housing Tax Credit (LIHTC) program. Fairfax Court is a garden style community with 18 units, 14 market-rate and 4 affordable units under the HOME program. Both communities are currently managed of the office at the Barclay Apartments. HOC intends to award a management contract for a term of two (2) years with three (3) one (1) year renewal options. Scope of Work: HOC requires a proposal for marketing, management and financial services for the community specific to the property s unique configuration and affordability requirements. Marketing Upon assuming management of the property, the successful management agent will be required to submit a detailed marketing program to be implemented at the property that reflects the following considerations: The unique nature of the property (See Exhibits A and B) The size and location of the property The surrounding market The nearest competitors with the applicable market comparisons The amenities and attributes of the property The deficiencies of the property and how to correct them Advertising and collateral materials Signage Tenant retention initiatives Page 2 of 10
Management Management Plan - Upon assuming management of the property, the successful management agent will be required to submit a detailed management plan to be implemented at the property that addresses the following: On-site staffing Staff supervision and senior staff involvement Regular, preventive and emergency maintenance staffing, supervision and procedures Contracting for services Capital needs assessments and reserve for replacement analyses Monitoring of utilities. Compliance with loan and program regulatory requirements, including certifications and re-certifications of residents income eligibility under affordable housing programs. Accounting and rent collection procedures Customer service Tenant organizations Resident services: Support for a variety of educational, recreational, employment and social programs, on and off-site for the resident population (including children and youth, adults and senior citizens) that are very low cost or free of charge. Documentation and reports on service delivery will be required. Reports - Routine reports that must be submitted on a monthly or more frequent basis: Incident reports within 24 hours of the occurrence of an incident. Monthly turnover reports, as may be required. Monthly rent schedule reports. Monthly General Ledger and Balance Sheet. Monthly Income and Rent report. Monthly court case report. Monthly market survey, as required. Monthly operation statements. Management fee calculation reports. Monthly Security Deposit account balance and liability reports. Monthly Rent Roll. Monthly schedule of Accounts Payable. Monthly Aging of Receivables Report. Monthly Delinquency Report. Monthly Variance report and narrative. Monthly reconciled bank statements. Other ad hoc or routine reports as requested by HOC. Page 3 of 10
Reports must be submitted to HOC on a timely basis, in hard copy and/or electronically, as directed. Property Management and Accounting Software HOC will provide to management firm, and management firm will be required to use the HOC Model Lease and HOC addenda, as appropriate (including a HOME addendum for any applicable properties receiving federal HOME funding), all of which have been reviewed and approved by Montgomery County Department of Housing and Community Development. Management firm will be required to utilize HOC software for housing and financial transactions as well as document retention. The timeline for transition to HOC software will be determine by HOC. The following systems are utilized by HOC: Yardi Voyager (Yardi Systems) o Core Financials o GL o Cash Management o Financial Analytics o Residential o Affordable o PHA o Budgeting and Forecasting o Inspections o Maintenance Purchase order Work Order Inventory o Contracts (HOC built module) OnBase (Hyland Software) o Client documents (folder for each property managed) Access to HOC systems will be provided to management firm via VMware. VMware View clients are required to be loaded on management firm PCs. HOC will provide training, as needed, for all required Yardi applications and OnBase. HOC Technology Policy forms and New User Access forms will be required for each user accessing HOC systems. No access will be provided until all forms have been completed. Any additional Yardi modules not listed above must be requested in the response of the RFP. Other Technology Related Items Management firm is responsible for acquisition and support of PCs, printers, copiers, scanners faxes and any other needed technology equipment. Internet connections are a requirement of this property for access to HOC systems. (If this property does not have Montgomery County Government supplied FiberNet, it is the responsibility of the management firm to acquire and support the internet connection to the property.) Page 4 of 10
Operating and Capital Budgets Detailed annual or multi-year operating and capital improvements budgets must be developed for each property, in compliance with the following: The budget must be submitted electronically using Yardi Software hosted by HOC and in hard copy in the format specified by HOC. A narrative is to accompany the budget with complete detailed assumptions for each budget line item. The budget process must be initiated approximately 7-8 months prior to the beginning of the next fiscal year and must be completed no later than 180 days prior to the commencement of each Fiscal Year. The budget must reflect rent increases or adjustments in conformance with HOC s directives and in accordance with governing regulatory requirements. The property must be managed within the budget. All variances must be justified in the monthly operation reports submitted to HOC. Property Management and Accounting Software: Each firm responding must comply with the requirement of using HOC's Yardi software for all property management and accounting functions. Section 3 Policy If the firm or individual meets the criteria of a Section 3 business (as described in Section 3 of the Housing and Urban Development Act of 1968), a statement identifying the firm or individual as such, must be provided with the response to the RFP. Attached hereto under Exhibit C, is HOC s Section 3 Clause and HOC Works Section 3 forms that are applicable if awarded a contract. Selection Process: HOC will select a management firm to manage Strathmore Court Limited Partnership and Barclay of Bethesda Limited Partnership based on the Criteria for Selection, as described herein. A summary of the property is provided as Exhibits A and B to this RFP. Submission Requirements for Bidders: Each firm responding to this RFP must submit a Statement of Qualifications, divided into sections that are clearly marked and tabbed, as follows: Company Overview - Provide a summary overview of your firm, including the names of the principal owners, an organizational chart, number of employees, and short history. Company Location - Provide a complete address of your firm s headquarters and any other office locations. Page 5 of 10
Company Experience - Describe the experience of your firm in the following categories: A list of all properties which your firm has managed in the last five (5) years. The list should identify mixed income properties with various market and affordable program components, including but not limited to Section 42 Low Income Tax Credit (LIHTC), HUD Housing Choice Voucher (Section 8) subsidy, County and State Rental Subsidies, tax exempt bond financing, and FHA mortgage insurance. Experience of the management company in managing affordable housing and resident initial certifications and recertifications on an ongoing basis is critical for the engagement. For each property, provide the following information: o Name and location of property o Size of property, i.e. number of residential units and retail spaces o Type of property within its market o Physical type of property o Name, address and telephone number of Owner at the time managed o Time during which the property was managed o Unit sizes and rent structure o Reason for no longer managing the property A list of all properties that your firm currently manages, providing the same information as listed above, except the last item. Indicate where there is an identity-of-interest between your firm and the ownership for each property. Key Personnel Identify the key personnel expected to participate in the management of each property, including both on-site and off-site personnel. Provide the following information for each person: Name and title. Experience. Length of employment with company. Identify training and certification in HUD Section 8 housing (both project-based and tenant-based), regulations including experience with affordable housing programs, list of certifications and companies providing the certifications. Experience of the key personnel in managing affordable housing programs is critical for this engagement. Demonstrated experience with initial tenant files and ongoing compliance is mandatory. References Provide a list of references that may be contacted. List the company names, contact person, title, address and telephone number. Also include the reason the reference is a good reference, for example, this person knows of your experience in managing LIHTC and other assisted properties. Page 6 of 10
Management Fee Proposal Indicate the management fee expected on a percent of net rental income basis AND also as a flat fee on a per unit/per month basis. Also include and itemize any and all additional costs that will be charged to the properties not included in the management fee. The Commission at its sole discretion will determine the fee structure that it will accept. Management of Renovation and Major Capital Projects Firms responding to this RFP must have experience in managing renovation and major capital projects, including both unit turnover renovation, in-place unit renovation and renovation requiring resident relocation. Provide examples of such management experience and the fees structure expected for management of renovation or major capital projects. Disclosure Provide a list of any other properties that your firm owns and/or manages in Montgomery County, identifying each by name and address. If any property currently owned and/or managed by your firm is within a five (5) mile radius of any HOC property listed on Exhibits A and B, provide an explanation of how your firm and its principals will address any potential conflict of interest. HOC reserves the right to determine, at its sole discretion, if such ownership or management by the firm or its principals creates a conflict of interest with the operation of an HOC community that would disqualify the firm from further consideration. Criteria for Selection of Management Firm Firm s past experience with the management of similar multi-family apartment communities in Montgomery County, specifically in highly competitive submarkets. Maximum Points = 10 Experience and qualifications of key personnel in managing similar types of apartment communities. Maximum Points = 15 Successful property positioning and experience in managing capital improvements and major property renovation, in highly competitive submarkets. Maximum Points = 25 Experience of the management company and key personnel in managing affordable housing programs. Demonstrated experience with initial tenant files and ongoing compliance. Maximum Points = 15 References. Maximum Points = 5 Review of submitted materials and/or interview with review panel. Maximum Points = 10 Certification as a Section 3 Business Concern or incorporation of a Section 3 Opportunities Plan. Maximum Points = 5 Fee expected including additional charges to the property, and renovation and capital projects management fees. Maximum Points = 20 Page 7 of 10
In order to observe the operations of the firms being considered for this engagement the selection panel may schedule a visit to a property currently managed by the firms and schedule a visit to the central place of business. Submission of Proposals Companies interested in managing The Barclay Apartments and Fairfax Apartments as described in Exhibits A and B must provide the information described in this Request for Proposal. Three copies of the proposal (1 original and 2 copies) must be submitted by 2:00 p.m. on June 8, 2017. Proposals received after this deadline will not be considered. Proposals must include all requested information to be considered. All proposals must include an original signature by the Chief Operating Officer of the company submitting the proposal. HOC will not be responsible for any costs involved in preparing and submitting proposals in response to this solicitation. Send proposals to: Housing Opportunities Commission of Montgomery County Attn: Procurement Office RFP# 2068 10400 Detrick Avenue Kensington, Maryland 20895 The Commission must approve all management company selections before contracts may be signed. Any questions regarding this Request for Proposal should be directed to Clarence Landers at clarence.landers@hocmc.org. Your email subject line should read RFP #2068 (Property Management Services for The Barclay Apartments and Fairfax Apartments). Page 8 of 10
Exhibit A Description of Property Barclay Apartments 4716 Bradley Boulevard, Chevy Chase, MD 20815 Barclay Apartments and Fairfax Apartments is a 155-unit garden style apartment community consisting of 74 market rate and 81 affordable LIHTC units. The units consist of efficiency, one-bedroom, and twobedrooms. The Barclay is located in the heart of Chevy Chase, in one of the area s most desirable neighborhoods. The Barclay was constructed in 1955 and features a community room and fitness room on the property. Utilities Electricity Pepco, paid by resident Gas Washington Gas, paid by property Water/Sewer - WSSC, paid by property Trash Waste Management, paid by property Construction/Building Description 1. Building Style: Garden style apartments 2. Exterior Materials/Facade: Brick 3. Exterior Lighting: Sodium lights on a photocell 4. Foundation: Cement and Brick 5. Roofs: Flat tar 6. Windows: Single pane windows 7. Balcony/Patio: N/A 8. Interior Wall: Plaster 9. Apartment Doors: metal fire doors 10. Laundry: Four laundry facilities on the property with coin operated machines 11. Life Safety: Sprinklers and hard-wired with battery back-up smoke detectors Mechanical/Electrical/Plumbing A/C and Heating: Central heat pumps Hot Water: The hot water is supplied from building boilers Plumbing Supply/Waste: public supply Electrical Service: 150 amps per unit Page 9 of 10
Exhibit B Description of Property Fairfax Court Apartments 1 Fairfax Court, Chevy Chase, MD 20815 Fairfax Court Apartments is an 18-unit garden style apartment community consisting of 14 market rate and 4 affordable HOME units. The units consist of two-bedroom and three-bedroom apartments. Fairfax Court is located in the heart of Chevy Chase, in one of the area s most desirable neighborhoods. Fairfax Court shares amenities with The Barclay which features a community room and fitness room on the property. Utilities Electricity Pepco, paid by resident Gas Washington Gas, paid by resident Water/Sewer - WSSC, paid by property Trash Waste Management, paid by property Construction/Building Description 12. Building Style: Garden style apartments 13. Exterior Materials/Facade: Brick 14. Exterior Lighting: Sodium lights on a photocell 15. Foundation: Cement and Brick 16. Roofs: Flat tar 17. Windows: Single pane windows 18. Balcony/Patio: Cement patios on ground level. Wood and wrought iron balconies on upper levels 19. Interior Wall: Plaster 20. Apartment Doors: wood composite doors 21. Laundry: One laundry facility on the property with coin operated machines 22. Life Safety: Battery operated smoke detectors Mechanical/Electrical/Plumbing A/C and Heating: Central heat pumps Hot Water: individual water heaters for each unit Plumbing Supply/Waste: public supply Electrical Service: 150 amps per unit Page 10 of 10