LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY REQUEST FOR QUALIFICATIONS For a PRIVATE DEVELOPMENT PARTNER To develop mixed income affordable residential dwelling units 1.0 INTRODUCTION The Lawrence-Douglas County Housing Authority (the Authority ) is announcing that funds are available for acquisition or development of mixed income or affordable housing and is inviting statements of qualifications from affordable or mix income residential developers to act as a private development partner with the Authority in undertaking the acquisition, development, construction, operation, and financing of affordable residential dwelling units in the City of Lawrence or Douglas County, Kansas. 1.1 Background. Authority will invest capital to construct a portion of a development project or fund an acquisition, the amount will depend on the project proposed. The Authority will act as property manager of the development, provide operating subsidy if available, and as a regulator of the owner s and management entity s performance in meeting U.S. Department of Housing and Urban Development (HUD) requirements throughout the life of the development. 1.2 Goals and Objectives. The primary goal of the Authority is to work with an experienced development team that will successfully acquire a multifamily property, or develop a mixed income or affordable housing property, to produce a well-designed rental project, either entirely affordable, or with an affordable component. The Authority's objectives are to assist in the acquisition or development of affordable housing which will: a) Provide family rental housing that is affordable to very low or low income levels, not to exceed 60 percent AMI, adjusted by household size. b) Take advantage of access to jobs, retail and services, and mass transit. c) Enhance the neighborhood of the proposed project. d) Maximize the affordability within the project. e) Minimize the subsidy required by leveraging of other non-local public and private funds. f) Avoid the concentration of affordable housing in high poverty tracts. Authority funds will be provided only to assist the development on family rental units affordable to households earning up to 60 percent AMI. However, the affordable units may be part of a larger mixed-income (market-rate) and/or mixed owner and renter development. 1
2.0 SCOPE OF SERVICES 2.1 Development Services. The private development partner selected through this RFQ (the Developer ) shall be responsible for acquisition of acceptable property, and to design, finance, construct, and/or operate affordable mixed income residential dwelling units (the "Project"). 2.2 Role of Developer. The Developer, in coordination with the Authority, shall provide or cause to be provided all services, work, equipment and materials necessary to complete the Project and shall without limitation: (1) furnish acceptable real estate to be developed (Project Site); (2) furnish through itself or general contractors and subcontractors, all professional expertise, management, labor, materials, supplies, equipment, skills, tools and machinery, testing, supervision, facilities and other services required for the Project; (3) cause to be obtained and/or administered all financing for the Project, including, but not limited to, construction loans, tax-exempt financing, tax credit and any other gap financing necessary to complete the Project, and shall prepare any and all necessary financing applications, reports and/or documents required to obtain this funding; and (4) develop affordable or mixed income residential dwelling units, including obtaining the required planning and zoning approvals, building permits and completing and overseeing construction of the project including the delivery of the Certificate of Occupancy and any required offsite improvements. The Developer or its affiliate will provide through itself or an affiliate of adequate net worth, all required lease up, completion and tax credit guarantees. The Developer will be expected to work with the Authority to create and implement a successful marketing program for the Project Site. 2.3 Resident Consultation Successful experience in community partnerships is a criterion in the selection of the Developer. The Authority may require that the Developer engage in regular communications with neighborhood organizations, local elected officials, service agencies, and government agency staff which may be designated by the Authority during the planning, construction and long term operation of the Project. 2.4 Innovative Financing Techniques. The Authority expects the selected Developer to secure additional capital funds for the Project, which may include Low-Income Housing Tax Credits and to explore other alternative methods of financing the Project. Demonstrated success in securing such funds is a ranking criterion of this RFQ. The housing developed pursuant to this RFQ may be operated by a private management agent that may be affiliated with the Authority, who will protect the investment and/or tax credits through high standards of construction, maintenance and management, and compliance with all applicable regulations. 2
2.5 Mixed-Financing HUD regulations allow for innovative financing techniques using Low-Income Housing Tax Credits (under Section 42 of the Internal Revenue Code) and other alternative financing mechanisms. The Authority anticipates that using this mixedfinance approach to development pursuant to this RFQ will require at least the following four formal agreements: (1) loan documents governing the capital investments in the development; (2) a management agreement which specifies the performance requirements of HUD and the Authority with respect to the daily operations; (3) a Regulatory and Operating Agreement, which defines the amount and method by which operating subsidy, if any, is provided to the development and the rights and responsibilities of all parties relative to federal and State laws and regulations; and (4) a Development Agreement between the Authority and the selected Developer setting forth the rights and obligations of the parties. Additional documents may be required and all documents are subject to the review and approval of the Authority and HUD. 2.6 Regulatory Compliance. This proposed public/private partnership is subject to compliance with any mixedfinance regulations issued by HUD. All agreements entered into as a result of this RFQ must comply with such regulations and other HUD guidance for the type of project proposed. The Project Units developed under this RFQ must be owned and operated pursuant to all applicable federal, State, and local laws, regulations, and policies, including, but not limited to, those concerning low-income housing eligibility, long-term rent affordability, adherence to fair housing and civil rights laws, Davis-Bacon wage rates, Section 3 requirements, and Section 42 of the Internal Revenue Code with respect to the use of Low-Income Housing Tax Credits. Further, the Project may be subject to HUD s Total Development Cost limits and to the Cost Control and Safe Harbor Standards for Rental and Mixed-Finance Development, as published and amended from time to time by HUD, as applicable. 3.0 SUBMISSION REQUIREMENTS 3.1 Readiness. Responses to this RFQ must demonstrate that the proposed development team is qualified, capable, and ready to implement the development process immediately upon selection. 3.2 Experience. Responses must contain demonstrated experience in some or all of the following areas: 1. Track record in completing acquisition, rehabilitation, or new construction of affordable or mixed income projects on time and on budget. 2. Development of Rental Housing through: a. Section 8 Vouchers b. New Construction c. Acquisition and Rehabilitation 3
d. Tax Credit Financed Units e. Working with a housing authority or other nonprofit organizations 3. Ability to obtain and knowledge of alternative financing methods using some or all of the following public sources of funds: a. Low-Income Housing Tax Credits b. Private Commercial Loans c. HOME and CDBG funds d. Federal Home Loan Bank AHP funding e. Other innovative methods 4. Demonstrate financial capacity to provide lender and investor guarantees. 5. Knowledge of the operation and management of low-income housing. 6. Capability and Readiness. 7. Demonstrated ability to interact, work, and build partnerships with: a. Residents b. Community c. Banks and Lenders d. Political Entities 3.3 Conceptual Plan. Developers must identify a proposed project site, and propose a preliminary conceptual plan of the development of the project site, including unit mix, tenure, building type, together with elevations and typical floor plans etc. 3.4 Project Feasibility. Developers must submit a schedule of uses and sources of funds necessary to complete the project as proposed, including any funding required from the Authority. Developers must also submit a proposed operating budget for the first year following stabilization including best and worst case evaluations. 3.5 References. At least three (3) references must be submitted, preferably from public housing authorities and/or non-profit housing organizations. 3.6 Project Schedule. Provide a timeline of proposed activity thru project completion. 3.7 Submission Format. The RFQ responses must be organized according to the format provided below. Failure to follow this format or omission of information responsive to these requirements may, in the authority s sole and absolute discretion, result in disqualification of the respondent from the RFQ process. 1. Executive Summary 2. Development Team Qualifications including: Team Participants, Personnel, Organization Chart, and References 3. Mixed Finance Housing Development Experience 4
4. MBE/WBE Experience 5. Statement of Financial Capability including annual financial statements for the last 2 years, and a letter of interest from a financial institution. 6. The Certifications in Attachments A, B, and C attached hereto. 7. Other information requested in 3.3 and 3.4 of this RFQ. 8. Other relevant information the respondent wishes to provide. Each of the criteria described above must be explained for each member of the development team. Resumes should be provided for all principals and key staff. Experience must reflect current experiences and the level of success attained for each member of the development team. The respondent must describe all Low-Income Housing Tax Credit experience and state the extent of involvement, amount of tax credits, and the State in which the credits were awarded. 4.0 APPROACH TO DEVELOPER SELECTION AND IMPLEMENTATION 4.1 The Authority may, based on the submitted responses, require oral presentations by any respondent of its approach to implementing the Project. After negotiations and selection of the Developer, the successful respondent will present a revised approach to the Project, as necessary. 4.2 Upon selection of the Developer, the Authority and the Developer will negotiate and execute a Development Agreement, detailing the Developer s responsibilities in connection with the Project. The Development Agreement must be reviewed and approved by HUD prior to final execution. 4.3 The Developer will develop architectural/engineering plans that provide for neighborhood and community involvement during the design process and obtain City approvals and permits. 4.4 The Developer will determine the use and availability of public and private financing sources, assemble financing packages, prepare necessary financing applications, and provide financial guarantees and assurances. 4.5 The Developer will coordinate all development team activities, including reporting and budget requirements, with the Authority s management team. 4.6 The Developer will adhere to all HUD mixed-finance, subsidy layering reviews, and other applicable requirements, including the preparation and submission of proposals, all required evidentiary, and other related documents. 5
5.0 SELECTION CRITERIA The Authority seeks demonstrated creativity, performance, financial stability, and community commitment in its Developer. The Authority will review and rank the responses according to the criteria described below, and will negotiate with the respondent with the highest ranking for its selection as the Developer. Demonstrated capacity to develop and manage mixed income rental communities. Demonstrated success in securing financing for real estate development from private sources. Financial Capability/ Project Feasibility/ Financial Benefit to the Authority. Planning and Design. Clear commitment to community partnerships in developing and operating housing. Proposed Project Site Suitability. Readiness. 6.0 TIMETABLE Advertisement of RFQ. May 2, 2012 Submission of Qualifications.. July 2, 2012 Review of Qualifications.. August 31, 2012 Oral Presentations.... TBD Site Visits (if necessary)....tbd Authority Selects and Notifies Developer..October 22, 2012 7.0 RIGHTS OF THE AUTHORITY The Authority expressly reserves the right to seek to negotiate any terms of any response to this RFQ. The Authority also expressly reserves the right (a) to waive minor irregularities in responses submitted in connection with this RFQ; and (b) to reject all responses to this RFQ, for any reason, and not select any Developer. The LDCHA reserves the right to select more than one respondent (and will accept joint venture proposals), to select a respondent(s) for specific purposes or for any combination of specific purposes, and to defer the selection of any respondent(s) to a time of the LDCHA s choosing. The Authority also expressly reserves the right to withdraw this RFQ for any reason. 6
8.0 SUBMISSIONS AND QUESTIONS One original marked ORIGINAL and 8 copies marked COPY of the Statement of Qualifications must be submitted by the deadline, July 2 nd at 4 P.M., Central Time. Questions about the RFQ must be submitted in writing by June 15 th. All questions and submissions in response to this RFQ must be submitted to: Shannon Oury, Executive Director Lawrence-Douglas County Housing Authority 1600 Haskell Ave. Lawrence, KS 66044 9.0 CERTIFICATIONS The Certifications in Attachments A, B, and C, attached hereto, must be executed and incorporated into the response. 7
ATTACHMENT A Representations, Certifications and Other Statements of Respondents (Non-Construction Contracts) 1. Contingent Fee Representation and Agreement (a) Definitions: As used in this provision: Bona fide employee means a person, employed by a respondent and subject to the respondent s supervision and control as to time, place and manner of performance, who neither exerts, nor proposes to exert improper influence to solicit or obtain contracts nor holds out as being able to obtain any contract(s) through improper influence. Improper influence means any influence that induces or tends to induce an Authority employee or officer to give consideration or to act regarding a response to this RFQ on any basis other than the merits of the matter. (b) The respondent represents and certifies as part of its proposal that, except for full-time bona fide employees working solely for the respondent, the respondent: (1) [ ] has, [ ] has not employed or retained any person or company to solicit or obtain this contract; and (2) [ ] has, [ ] has not paid or agreed to pay to any person or company employed or retained to solicit or obtain this contract any commission, percentage, brokerage, or other fee contingent upon or resulting from the award of this contract. (c) If the answer to either (b)(1) or (b)(2) above is affirmative, the respondent shall make an immediate and full written disclosure to the Authority Executive Director noted in Section 8.0 of this RFQ. (d) Any misrepresentations by the respondent shall give the Authority the right to (1) terminate the contract; (2) at its discretion, deduct from contract payments the amount of any commission, percentage, brokerage, or other contingent fees; or (3) take other remedy pursuant to the contract. 2. Organization Conflicts of Interest Certification The respondent certifies that to the best of his or her knowledge and belief, and except as otherwise disclosed, he or she does not have any organizational conflict of interest. An organizational conflict of interest is defined as a situation in which the nature of work to be performed under this RFQ and the respondent s organizational, financial, contractual, or other interests may, without some restriction on future activities: (a) (b) Result in an unfair competitive advantage to the respondent; or, Impair the respondent s objectivity in performing the work. 8
[ ] In the absence of any actual or apparent conflict, I hereby certify that to the best of my knowledge and belief, no actual or apparent conflict of interest exists with regard to my possible performance of this RFQ. 3. Respondent s Certification of Eligibility (a) By the submission of this RFQ, the respondent certifies that to the best of his or her knowledge and belief, neither he or she, nor any person or firm which has an interest in the respondent s firms is ineligible to: (1) Be awarded contracts by any agency of the United States Government, HUD, or the state in which this contract is to be performed; or, (2) Participate in HUD programs. (b) The certification in paragraph (a) above is a material representation of fact upon which reliance was placed when making award. If it is later determined that the respondent knowingly rendered erroneous certification, the contract may be terminated for default, and the respondent may be debarred or suspended from participation in HUD programs and other Federal contract programs. 4. Minimum Acceptance Period (a) (b) (c) (d) (e) (f) Acceptance period, as used in this provision, means the number of calendar days available to the Authority for awarding this RFQ from the date specified in this solicitation for receipt of the responses. This provision supplements any language pertaining to the acceptance period that may appear elsewhere in this solicitation. The Authority requires a minimum acceptance period of 180 calendar days. In the space provided immediately below, respondents may request a longer acceptance period than the Authority s minimum requirement and/or the date of selection of the Developer, set forth in Section 6.0 of this RFQ. The respondent requests the following acceptance period: (calendar days). A response requesting less than the Authority s minimum acceptance period will be rejected. The respondent agrees to execute all that it has undertaken to do, in compliance with its proposal, if that proposal is accepted in writing within (1) the acceptance period stated in paragraph (c) above or (2) any longer acceptance period stated in paragraph (d) above. 5. Emerging Small Business Program The Developer will use reasonable efforts to implement an MBE/WBE and Section 3 Plan, consistent with the law, to achieve maximum participation in the Project. 6. Nondiscrimination 9
The Respondent shall not discriminate against, or segregate a person or group on account of race, creed, religion, sex, sexual orientation, marital status, familial status, national origin, ancestry, disability, or gender identity in carrying out its duties and obligations pursuant to this Agreement, nor shall the Respondent establish or permit any such practice or practices of discrimination or segregation. 7. Respondent s Signature The respondent hereby certifies that the information contained in these certifications and representations is accurate, complete, and current. Signature Date Typed or Printed Name Title Company Name Company Address 10
ATTACHMENT B Certification of Respondent Regarding Debarment, Suspension and Other Responsibility Matters (Respondent) certifies, to the best of their knowledge and belief, that he or she and his or her principals: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from covered transactions by a Federal, State or Local department or agency; and 2. Have not, within a 3 year period preceding this bid, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain or performing a public (Federal, State or Local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property; and 3. Are not presently indicted for or otherwise criminally or civilly charged by a government entity (Federal, State or Local) with commission of any of the offenses enumerated in Paragraph (2) of this certification; and 4. Have not within a 3 year period preceding this bid, had one or more public transactions (Federal, State or Local) terminated for cause of default. (Respondent) CERTIFIES OR AFFIRMS THE TRUTHFULNESS AND ACCURACY OF THE CONTENTS OF THE STATEMENTS SUBMITTED ON OR WITH THIS CERTIFICATION. Signature and Title of Authorized Official 11
ATTACHMENT C Certification Regarding Lobbying I,, hereby certify on behalf (name and title of authorized official) of that: (Developer) 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan or cooperative agreement. 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer of employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, the undersigned shall complete and submit Standard Form LLL, Disclosure Form to Report Lobbying, in accordance with its instructions. 3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including sub-contracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclosure accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Signature and Title of Authorized Agent 12