REQUEST FOR PROPOSAL. for REFINANCE OF FIRST MORTGAGE FOR FOOTHILLS COMMUNITY. for BOULDER HOUSING PARTNERS

Transcription

1 REQUEST FOR PROPOSAL for REFINANCE OF FIRST MORTGAGE FOR FOOTHILLS COMMUNITY for BOULDER HOUSING PARTNERS June 24, 2013 Requested Return: July 12, 2013 Boulder Housing Partners 4800 Broadway Boulder, Co (720)

2 Request for Proposals Refinance of Foothills Community Contents A. Overview and Process 1. Overview 2. Process and Deadlines B. Background and Services Requested 1. About Boulder Housing Partners 2. Services Requested C. Submittal Requirements 1. Elements to Include 2. Evaluation Criteria and Weight Factors D. General Information 1. Submittal Rejection 2. Contract and Method of Payment 3. Submittal Withdrawal 4. Limitation of Liability 5. Insurance Requirements 2

3 A. Overview, Process and Deadlines 1. Overview Boulder Housing Partners seeks a lender to refinance a 74 unit property, built in The property will be coming out of a low income housing tax credit (LIHTC) partnership. The existing loan with an interest rate of 7.8% is due on July 10, We are seeking competitive refinance terms to reduce the interest rate while providing additional cash out funds primarily for interior upgrades to the units. 2. Process and Deadlines The evaluation committee will review the submittals and may interview the top two firms based on their submittal to this Request for Proposals. Submittals are to be received at the address below no later than July 12 at 4:00 p.m. Please provide submittals electronically, on the e-procurement website, or via to: koczelaj@boulderhousingpartners.org Only those submittals received by the specified date and time will be considered. Submittals are limited to a total of five (5) pages. The submittals will be reviewed by an evaluation committee. The evaluation committee will review and rate each submittal based on the evaluation criteria listed in this document. If needed, the same evaluation committee will also conduct interviews. Scores from the submittal and the interview will be utilized in making the final selection. Boulder Housing Partners shall begin negotiations on price and contract with the highest ranked firm. Should negotiations fail between Boulder Housing Partners and the highest ranked firm; negotiations will cease with the top ranked firm and begin with the second ranked firm and so on until a contract is awarded. 3

4 B. Background and Services Requested 1. About Boulder Housing Partners Boulder Housing Partners is the largest provider of affordable housing for lower income households in the city of Boulder. Our mission is to "provide a broad range of safe, affordable and high quality housing programs for families of low and moderate income. The BHP was formed by the City Council of the City of Boulder in 1966 under provisions of state law to address the need for decent, safe, and sanitary housing in Boulder. Boulder Housing Partners owns and manages more than 1000 units of affordable housing and 860 Housing Choice Vouchers in Boulder. The 1000 units are located in 29 properties. We own 337 public housing units, 116 Section 8 project based units (two properties) and more than 500 non-hud units(301 tax credit units at 7 properties and the balance subsidized with a variety of sources) These properties provide a continuum of housing choices to a large cross section of families. Boulder Housing Partners leases dwelling units to elderly, minorities, single parents, families, and the physically disabled. Further, Boulder Housing Partners is an active partner with the City of Boulder in developing programs and policies to meet the housing needs of the community. A nine-member board of Commissioners, all of whom are appointed by the mayor and one of whom is a current City Council member, provides direction for the organization. Day to day operations are supervised by the Executive Director. There are approximately 55 staff members in the organization. Boulder Housing Partners performs many functions that include property management, development of new properties, acquisition of new units, community organizing, administrative functions, and maintenance services. A single property management staff manages both the HUD and the non-hud portfolios. Currently none of our management is contracted privately. 2. Services Requested Foothills Community is 74 units of carriage houses, duplexes, triplexes and fourplexes located adjacent to Boulder open space. There are 14 one bedroom, 55 two bedroom and 5 three bedroom units. The property was developed in 2002 using Low Income Housing Tax Credits. The site includes 22 market rate units and 52 affordable units. The property is currently at the end of the tax credit period however it has 4 more years of tax credit compliance. Boulder Housing Partners is working with the tax credit limited partners on their exit. The final details of the timing of the limited partners exit have not been finalized. We expect the property to be placed into a single asset limited liability corporation with BHP as the sole member. We are seeking the most favorable interest rate 4

5 you can offer. If needed, BHP has $10,000,000 in annual bank qualified double tax exempt authority, available for use on this project. BHP has several goals related to the ongoing operation of the property: Become 100% owner of the property Continue to operate the property as 22 market rate and 54 affordable units of rental housing; Refinance all debt related to the property to the lowest interest rate possible; Complete capital improvements based on our internal evaluation of the property; and Position the property to perform to BHP s triple bottom line of financial, social, and environmental sustainability over the next fifteen to twenty years. Loan Request Summary (please submit terms for both tax-exempt bank-qualified, as well as a taxable loan) Requested Loan Amount Approximately $7,000,000 representing: The outstanding balance including prepayment penalty (approx. $5,965,750) of the existing loan; Capital improvements (approx. $1,000,000) Plus legal and other closing costs (approx. $35,000). Plan of Refinancing BHP desires to refinance this property as part of or shortly following the LIHTC tax credit exit. BHP desires to accomplish this refinancing with the minimum amount of cost and transaction processing; Interest Rate Fixed rate for the agreed upon term of the loan Collateral First deeds of trust on subject property. Prepayment Options BHP desires the most flexible prepayment option possible for the requested loan; 5

6 Tax-exempt and Bankqualified opinions BHP will deliver an opinion of counsel acceptable to the lender stating that the interest on the loan will qualify for exemption from Federal and State income taxes based on state and federal law and that the loan can be treated as bank-qualified for appropriate institutions. BHP Contacts: Chief Financial Officer Director of Portfolio Operations Jim Koczela Jeremy Ehrhart Proposed Closing Date On or before August 31, 2013 C. Submittal 1. Elements to Include a. Submittal Letter b. Lender profile and description of experience providing this type of service. c. One completed copy of Attachment A for the loan. d. List of individuals and their contact information for relationship management, underwriting, closing, and performing ongoing asset management related to this loan. e. Three references (only required if you have no current loans with BHP) 2. Evaluation Criteria and Weight Factors Interest rate pricing Loan To Value Ratio, DSCR and other underwriting criteria Favorable Prepayment Penalties Origination fees, counsel fees, due diligence costs, and any other costs 0-40 pts 0-20 pts 0-10 pts 0-10 pts 6

7 Lender profile, references and experience of key personnel 0-20 pts D. General Information a. Submittal Rejection: Boulder Housing Partners has the right to reject any and all submittals and waive any irregularities therein, if it is found to be in the best interest of Boulder Housing Partners. Submittals not received by the required deadline are ineligible for consideration and will not be opened. Boulder Housing Partners may change the deadline at any time in order to assure adequate review of the submittals. b. Submittal Withdrawal: No firm may withdraw a submittal for a period of 45 days after the date of submission, (we recognize that interest rates may not be held for the full 45 days without a lock fee) but a submittal may be withdrawn up to 24 hours prior to expiration of the deadline for submitting submittals. c. Limitation of Liability: Boulder Housing Partners assumes no liability for costs incurred by firms in responding to the Request for Proposals or interview process. All submittals become a matter of public record upon submission. d. Boulder Housing Partners does business in accordance with the Federal Fair Housing Law (The Fair Housing Amendments Act of 1988). It is illegal to discriminate against any person because of race, color, religion, sex, handicap, family status, national origin, or sexual performance. D. Attachments a. Foothills 2010, 2011 and 2012 audited financial statements b. Foothills YTD financial statements c. Foothills current rent roll d. BHP 2012 audited financial statements e. BHP 2013 ytd financial statements 7

8 Attachment A Terms Matrix Lending Institution Primary point of contact for this proposal Loan Amount Tax Exempt Interest Rate Taxable Interest Rate Loan Term Loan Amortization Maximum Loan to Value Minimum DSC Origination Fee Due diligence and other fees (inspections, appraisals, lender s attorney, etc) Guarantee Recourse Prepayment Forward Rate lock fee Forward rate lock term Deposits requirement (if any) 8