Request for Proposals (RFP) Supportive Services and Development Funding for Affordable Supportive Housing February 2015 Funding Partners: MECKLENBURG COUNTY CITY OF CHARLOTTE Table of Contents 1. Introduction 2. General Procedures 3. Mecklenburg County 4. City of Charlotte 5. Appendices 2 1. INTRODUCTION 3 1.1 Overview The City of Charlotte Neighborhood & Business Services (“NBS”) and Mecklenburg County Community Support Services, (“CSS”), or collectively the (“Collaborative Partners”) are jointly accepting proposals for supportive housing developments and supportive housing programs. Supportive housing developments may serve chronically homeless individuals and families. Funds are available for housing development or rehabilitation and/or supportive services staffing with the understanding that supportive programs are intended to improve residents’ quality of life. Supportive services funding must be paired with non-time limited housing. Developments seeking capital funding from the City of Charlotte must be developed in compliance with City Council’s approved Housing Development Policies. The primary intent of this Request for Proposals (RFP) is to select and contract with qualified organizations demonstrating competencies in housing development and best practices in resident outcomes for eligible populations, to ensure health and safety of residents, and demonstrating efficient and responsible use of funds. This coordinated RFP provides a streamlined process for the Collaborative Partners to review applications and award funding to organizations most qualified to meet supportive housing needs. Applicants may choose to apply for one, or both funding sources available through this RFP on Form A. 1.2 Participating Funders and Funding Availability 1.2.1 MECKLENBURG COUNTY COMMUNITY SUPPORT SERVICES DEPARTMENT (“CSS”): For the purposes of this RFP, Mecklenburg County CSS will allocate up to $800,000 for supportive services up to three fiscal years depending on recipient performance, funding availability and the eligible population served. One or multiple awards may be awarded. In its discretion, Mecklenburg County CSS will allocate Housing Stability and Supportive Services (HSS) funds based on a 1to 15 social worker to client ratio to qualified RFP respondents. Contact: Jamie Privuznak, Management Analyst Jamie.Privuznak@mecklenburgcountync.gov, 704-432-3525 1.2.2 CITY OF CHARLOTTE NEIGHBORHOOD & BUSINESS SERVICES, HOUSING SERVICES (“NBS”): An amount of up to $1,500,000 from the City of Charlotte will be allocated from existing housing dollars for the purpose of funding costs associated with construction or rehabilitation of the development of supportive housing. Contact: Zelleka Biermann, NBS Housing Services Supervisor zbiermann@ci.charlotte.nc.us, 704-336-2482 4 1.3 Goals and Objectives The goal of this RFP is to provide supportive housing developments and/or programs that support the goals of the Ten Year Plan to End and Prevent Homelessness (“Plan”). For the purposes of this RFP, proposals that support new construction or rehabilitation of supportive housing units and supportive services programs for homeless families and chronically homeless individuals or families will be given priority. In cases where a developer is seeking capital funding from the City, developments must be developed and located in compliance with City Council’s approved housing policies. 5 2. GENERAL PROCEDURES 6 Information Session Organizations interested in applying for funds are strongly encouraged to attend an information session on February 13, 2015. During this session, the Collaborative Partners will provide an overview of the RFP, discuss the common funding priorities and development goals, provide information on each of their available funds, and provide details on the application process. INFORMATION SESSION February 13, 2015 10:00 A.M EST City of Charlotte Old City Hall Wilmore Conference Room 106 600 East Trade Street Charlotte, NC 28202 2.1 Timeline for Submission and Award Activity Public Notice announcing RFP RFP Information Session Final Date for Submission of Questions Proposal Submission deadline Proposal Evaluations complete Project Proposal Selection and Funding Award Date Feb 6, 2015 Feb 13, 2015 Feb 20, 2015 March 6, 2015 April 2015 April/May 2015 2.2 Submission of Questions Notify Jamie Privuznak, in writing or via email, if discrepancies or omissions are found in this RFP or any other document(s) provided by the Collaborative Partners. A written addendum will be made available, via Mecklenburg County and the City of Charlotte’s website, as deemed necessary by the Collaborative Partners. Any questions about this RFP must be submitted, via email. All questions shall be directed to: Jamie Privuznak, Management Analyst via Jamie.Privuznak@mecklenburgcountync.gov no later than 5 PM EST, February 20, 2015. 7 2.3 Submission of Proposal 2.3.1 All Proposals must include: a. Electronic Copy: Submit one PDF attachment of all non-confidential information and one PDF attachment of all confidential information to Jamie Privuznak, Management Analyst, Mecklenburg County, via Jamie.Privuznak@mecklenburgcountync.gov NOTE: All information contained and submitted in the proposal that is not identified as confidential shall become public property and after final award of the RFP, copies of non-confidential portions of each proposal submitted may be provided to parties requesting copies of the request for proposal submissions. b. Hard Copies: Three hard copies of the proposal are required. If applying for the County’s Supportive Service dollars, attach three copies of the completed budget excel form. c. USB Drive: Include one USB drive with your agency’s proposal in a PDF format. If applying for the County’s Supportive Service dollars, include the completed budget Excel form on the USB drive. Include the USB drive with the three hard copies. 2.3.2 Submission Date Proposals must be received at Mecklenburg County Community Support Services, Harold R. Marshall Building, 2nd Floor, 700N. Tryon Street, Charlotte, NC, 28202. All proposals must be received by 5:00pm EST on March 6, 2015. 2.3.3 Proposal Format Organize and label your responses according to each section heading and make sure your responses fully describe the proposed development/program. All proposal responses must meet the following requirements: All proposals shall be 8 1/2" x 11" formatted with all standard text no smaller than eleven (11) points; PDF files must be submitted; The three hard copies must be printed double-sided; and Materials must be submitted in a format that allows for easy removal and recycling. 8 If a responding firm chooses to provide additional materials in their proposal beyond those requested, those materials should be included in a separate section of the proposal. The Collaborative Partners reserve the right to accept or reject any or all submittals. The Partners also reserve the right to investigate the financial capability, reputation, experience, location, references, history, integrity, skill, judgment, and quality of performance under similar operations of each respondent. NOTE: All proposals as submitted are final. No changes or amendments will be accepted. 2.4 General Proposal Content 2.4.1 Applicant Capacity and Experience Describe the applicant’s experience providing supportive housing and/or supportive services programs to the eligible population described in this proposal. Provide a brief history of the Applicant Organization, including purpose, current programs, and number of staff persons. 2.4.2 Capacity of Service Provider Describe the experience and capacity of the service provider to coordinate, provide, and/or act as a referral agent for community-based services that support persons of the eligible population. Include a brief description of the organization’s history, mission, staffing, and the services the organization provides/coordinates. Identify a public agency or experienced service provider with which a written agreement has been executed to refer eligible persons and families for the eligible units. 2.4.3 Partnership History If partners are a part of your proposed development, provide information on your history collaborating with one another and how the partnership will facilitate a streamlined process for participant access to the housing and/or services being offered. 2.4.4 Funding Request List the funding programs you are applying for, including the amounts requested from each program. Explain how funding will be used (e.g., for development, services, operating support and/or supportive services) and state whether all funding is required for your development to move forward. Explain how you propose to maximize or leverage existing or committed funding by pairing with the funding sources in this RFP. 9 Note: If your agency is applying for the County’s Supportive Service dollars, please download the Support Service dollars budget Excel form from the website(s) below and attach a completed Excel form to your RFP response. http://charmeck.org/city/charlotte/nbs/housing/Pages/rfp.aspx OR http://charmeck.org/mecklenburg/county/CommunitySupportServices/HomelessServi ces/Housing-Stability-Funding/Pages/default.aspx 2.4.5 Rental Assistance List the intended or accounted for rental assistance source(s) as part of your funding request. This should be new rental assistance because this RFP seeks to build upon the current projects that have received funding in the community. Examples of rental assistance include, but not limited to, project-based vouchers, Housing Choice vouchers, and rental subsidy. Describe the source and the target population to be served with the rental assistance. Note: Mecklenburg County Community Support Services will not support a project request that does not include a source of rental assistance either intended or accounted for prior to application submittal. 2.4.6 Development/Program Description Identify the eligible population, e.g., homeless, domestic violence survivors, disabled, children in foster care, mentally ill, substance abuse recovery, HIV/AIDS, other. Describe how the housing and/or services of the development/programs are structured to meet the needs of the intended eligible population. Include a description of how this development provides an integrated housing solution for the eligible population. Describe how the development collaborates with the Continuum of Care planning process. (See Appendix C for definition of Continuum of Care) 2.4.7 Supportive Services Plan Provide a detailed description of the type of housing and supportive services to be provided to residents, including the tenant selection policies, if applicable. Explain how services will increase stability for participants. Explain how residents’ needs for services are identified and individual service plans are developed. Also, provide information on how the development will help create linkages for participants to other community resources. 2.4.8 Proposed Financing The proposed financing sources for each Collaborative Partner funding program must be demonstrated according to the requirements for submission outlined in each section of the respective Collaborative Partner. 10 2.4.9 Forms Every applicant is required to submit the Joint Funding Application (Form A) and any forms required by the funding program from which the applicant is requesting funds. 2.4.10 Required Attachments a. Cover letter b. Three references that can speak directly to the applicant’s development and/or service provider experience c. Applicant’s financial statements prepared by a certified public accountant for current year and previous year d. Applicant’s Articles of Incorporation and current bylaws e. IRS 501c(3) determination letter (if non-profit) f. Certificate of Good Standing from the North Carolina Secretary of State or State where the developer/development team is incorporated g. List of Board of Directors, include addresses and telephone numbers h. Current organizational chart i. Resident Service Plan j. Complete the Supportive Service dollar budget Excel form and attach with your agency’s RFP response, if applying for County Supportive Service dollars. 2.5 Eligibility Criteria 2.5.1 Eligible Applicants The following organizations are eligible to apply for funds under this RFP: Public Agency Private Nonprofit (501)(c)(3) Private for Profit In order to be awarded funds, applicants must demonstrate they either 1) Have development capacity or are partnering with a housing developer 2) Have capacity for administering rental assistance, and/or 3) Have experience helping clients secure housing units in the private market. Programs awarded supportive services funding must have a non-time limited housing component whereas units are made affordable to clients for as long as a subsidy is needed. 11 2.5.2 Eligible Populations Through this streamlined RFP process, the Collaborative Partners are requesting submissions of proposals from organizations interested in providing housing and/or supportive services to eligible populations in support of the community’s Ten Year Plan to End and Prevent Homelessness. For the purposes of this collaborative RFP, eligible populations are: a. “Chronically Homeless” means an unaccompanied homeless individual (18 or older) with a disabling condition OR a family with at least one adult member (18 or older) who has a disabling condition who has either been continuously homeless for a year or more OR has had at least four episodes of homelessness in the past three years. The disabling condition can include mental illness, chronic substance abuse, HIV/AIDs, physical disability or developmental disability. b. A “Homeless Family” is one or more adults (18 or older), a pregnant woman (18 or older) or a legal caregiver with at least one child under 18, who is residing in the home or is in the process of reunifying with their parent or custodian. Parents who are in the process of reunifying with their children must demonstrate that there is a clear plan in place for the custody of the children to be restored. Proposals must clearly identify the population to be served by the housing development or program; the number of clients served daily and annually and the numbers of housing units to be set aside for specific populations (if applicable). Additionally, the development proposal must document the need for the proposed housing and supports for the eligible population. 2.5.3 Eligible Housing Units For the purposes of this collaborative RFP, an “eligible housing unit” is affordable and must serve one or more of the eligible populations. Priority will be given for households earning 30% or below AMI. 2.6 Evaluation Criteria Each Collaborative Partner will evaluate the investment of the resources made available through this RFP according to its rating system. The evaluation criteria consider certain threshold requirements specific to each resource. 12 The Collaborative Partners will evaluate the financial feasibility; consistency with City Council’s approved housing policies, and the applicant’s proven development or program experience and capacity. 2.7 Additional Information The Collaborative Partners reserve the right to request additional information or documentation from any applicant regarding its submitted documents, personnel, financial viability, or other items in order to complete the selection process. 2.8 Additional Presentation The Collaborative Partners may, in their discretion, require one or more applicants to make presentations to the evaluation team or appear before the Collaborative Partners and/or their representatives for an interview. During such interview, the applicant may be required to orally and otherwise present its proposal and to respond in detail to any question. Additional meetings may be held, as deemed appropriate. Applicants will be notified in advance of the time and format of such meetings. Since the Collaborative Partners may choose to award a contract without engaging in discussions or negotiations, the proposal must define the applicant’s best offer for performing the services described in this RFP. The commencement of additional discussions does not signify a commitment by the Collaborative Partners to execute a contract. The Collaborative Partners can terminate discussions at any time and for any reason. 2.9 Rejection of Proposals The Collaborative Partners will have a period up to sixty (60) days, unless otherwise stated, to decide which proposal best meets the criteria outlined in the RFP. The Collaborative Partners reserve the right to waive any minor informalities or irregularities, which do not go to the heart of the proposal or prejudice other offers, or to reject, for good and compelling reasons, any and all proposals. Conditional proposals, or those which take exception to the RFP, will be considered non-responsive and will be rejected. 2.10 Award Decision Upon completing their evaluation of proposals, each Collaborative Partner will select the proposals that best satisfy their conditions in this RFP. Any organization selected will be notified and awarded an opportunity to negotiate a contract with one or more of the Collaborative Partners. All unsuccessful applicants will be notified by e-mail or U.S. mail, at the Collaborative Partners’ discretion, about the outcome of the evaluation and selection process. Funding requests for the City of Charlotte must be approved by the City Council. 13 14 3. MECKLENBURG COUNTY HOUSING STABILITY AND SUPPORT SERVICES PROGRAM 15 3.1 Program Guidelines 3.1.1 Program Funds Mecklenburg County CSS will allocate up to $800,000 over two or three fiscal years depending on recipient performance, funding availability, and the population served for the provision of supportive services. The CSS program funding is for salary, benefits, and any one time costs associated with a full-time social worker position(s). The County will contract with organizations to provide the services directly to the clients and reimburse the award recipients for actual expenses on a monthly basis. The proposed cost will be negotiable based upon proposed budget. Supportive services will be provided to the programs eligible population placed in non-time limited or permanent housing units. (See definition for “Supportive Services” in Appendix C.) Priority ranking will be given to the development proposals that serve homeless families with children or chronically homeless individuals or families. The national best practice and assumption used as part of the funding allocation is one to fifteen or one full-time social worker for every fifteen housing units regardless of the number of individuals living in a single housing unit. The applicant may choose to deviate from the best practice ratio as described. If the applicant recommends a different caseload ratio, then the rationale for the amended ratio must be provided as part of the RFP proposal. Mecklenburg County understands the need for providing flexibility to service providers. Variations from best practices are acceptable and may be based on client barriers and site design to name a couple of reasons. Mecklenburg County does not intend to hire additional social workers as part of this proposal. Rather, Mecklenburg County will contract directly with the awarded agency/agencies to provide the service and reimburse the agency/agencies for services rendered on a monthly basis. 3.1.2 Supportive Housing Guidelines a. Eligible housing units must be permanent housing units with supportive services only. b. Choice in housing and living arrangements Include: Decisions about who else lives in the housing (e.g. alone, or with family or friends); Location of the housing; 16 Size of the unit; Proximity to services/public transportation. c. Functional separation of housing and services Participation in specific support services is NOT required to obtain or maintain housing. Effective approaches to implementing this practice include: Legal separation between housing management and service delivery; Functional separation—distinct housing and service staff roles (e.g. rent collection, maintenance of the property). d. Decent, safe, and affordable housing All housing units must meet HUD’s Housing Quality Standards (HQS) and be inspected at least once per year. All housing units receiving City funding must comply with the City’s minimum housing standards in addition to HUD’s Housing Quality Standards (HQS); All housing units must be affordable to the population served—HUD affordability guidelines define 30 percent of income for housing as affordable. e. Community integration Includes the following elements: Housing is located in regular residential areas; Housing approaches that mix populations are preferred (i.e. target populations with persons without identified special needs); Tenants participate in community activities and receive community services; Natural supports are encouraged. f. Rights of tenancy Tenants have full legal rights in a tenant-landlord relationship; Tenants must abide by normal standards of behavior and conduct outlined in a lease; The agreement between the tenant and landlord determines the length of stay. g. Access to housing Intake and screening processes prioritize and facilitate access to housing; Application and intake processes are streamlined, efficient and feasible; All involved organizations are encouraged to use a unified application process. h. Flexible, voluntary, and service-focused services 17 Tenants can accept or refuse treatment or other services, but staff must continue to offer support and use flexible engagement strategies; Type, location, intensity and frequency of services must meet tenants’ needs; Risk management and crisis planning are part of the plan of support and are developed in partnership with tenants; Service-oriented, consumer-driven, and evidence-based services work best. i. Terms and Conditions The program plan should specify the terms or conditions under which persons will reside in the housing (and, if different, under which they will receive rental subsidies). j. Access to Housing - Outreach, Referral and Tenant Selection Project Plans should specify how persons will gain access to the housing, including a detailed description of outreach strategies to those individuals deemed eligible for the program. If access is to be over several locales, the application should specify how this will be accomplished. The eligibility screening process should not include “housing readiness” criteria and should reflect a commitment to providing housing to tenants with no current income, with histories of homelessness, with histories of incarceration, with prior housing failures, with poor credit histories, with disabilities, with past or current substance abuse and/or other obstacles to housing stability. k. General Standards - All Eligible Units All housing units must be affordable to the population to be served. Rents should be set at rates where the target population is expected to pay no more than 30 percent of their income for housing costs. Development Project Plans must describe plans for ensuring long-term affordability. All housing units must be of good quality (meet HUD housing quality standards) and be in compliance with state and local fire and building codes, including codes relating to handicapped accessibility. Development/Project Plans must describe strategies that will be taken to ensure housing quality. Ideally, all housing units should be accessible to public transportation and community amenities. However, if they are not, the service program plan must reflect how alternate transportation will be provided. All housing units must provide for the safety and security of their tenants. 18 l. Tenant or Resident Involvement Priority will be given to approaches that maximize participation by consumers reflective of the target population to be served in the design and creation of the service approaches. Project Plans should reflect how this will be accomplished. 3.1.3 Service Plan Principles A one to fifteen social worker client ratio is desirable for service provision. However, an applicant may propose a different caseload ratio as part of this proposal. The rationale for the deviation from the best practice must be included in the RFP proposal. The service plan must be designed to meet the needs of the eligible population to be served and ensure access by the tenants to the non-clinical and clinical services they need to achieve and retain permanent housing, increase their skills and/or income, and achieve greater self-determination. There must be a written service plan, which is to be updated at least semi-annually. Outreach and engagement is a fundamental component of services in supportive housing, and it is expected that the awarded agency will continue to engage with tenants post move-in as an ongoing part of service delivery. The service approach should incorporate the essential components, core competencies and values described below in the Key Principles of the Service Plan. 3.1.4 Other Service Plan Requirements Reflect the importance and value of connecting residents with mainstream resources, including employment and training programs, federal and state entitlement programs, and healthcare programs. The service plan should describe existing and planned linkages with vocational, educational and healthcare providers within the locality or region to be served. Incorporate natural supports (families, peers, faith communities, etc.). Articulate strategies for relapse prevention and management and linkages to treatment that will be developed to support these. Ensure that services are available for as long as is needed by the individual client. Individuals are not required to participate in drug treatment and/or mental health case management services as part of service provision. 3.1.5 Linkages with Existing Area Services 19 Submitting organizations will be expected to identify community-based support services that complement the rehabilitation services that will be funded under Housing Stability Funds. Services that will be provided under HSS funds must: Link with and support existing case management systems within the community and region, and not be duplicative of such services; Provide for adequate linkages to the treatment system, particularly in regard to relapse prevention and relapse management and mental health system; Link with employment and educational supports within the region. Submitting organizations should identify existing linkages to service, treatment, employment, and educational resources within the region or describe their agency’s plans to establish such connections. Evidence of access to support services should be specified in written memoranda of understanding or contracts for services. Evidence that such memoranda or contracts are in place will strengthen applications submitted in response to this RFP, and may be a condition of subsequent funding approval. Key Principles of the Service Plan 1. Essential components of services to be provided: a. Focused on the strengths and needs of each individual client; b. Provides help to client in identifying goals and needs, to develop plans to achieve their goals and objectives, and to gain access to appropriate community-based services, including, but not limited to, clinical services, employment and education, natural supports (family, peers, faith communities, etc.), and general community resources; and c. Available where and when needed by the client. Clients must be able to access case management services where they live (meaning that case management services come to the client) and at hours that work for the client. 2. Values of services to be provided: a. Committed to maximizing client choices and options; b. Focused on client’s strengths, gifts and potential contributions; c. Guided by an expectation of hope and recovery; and d. Recognizes the importance and value of employment and work. 3. Competencies of the service design: a. Not duplicative of existing services serving the target population; 20 b. c. d. 4. 3.2 Provides for adequate linkages to the treatment system, particularly in regard to relapse prevention and relapse management; Flexible and responsive service approach that recognizes, and can adapt to, an episodic pattern of service demands; and Service team is internally coordinated with clear lines of communication, supervision and accountability. Core competencies of service team: a. Skilled in on-going outreach and engagement of clients; b. Experienced with development of life skills that supports the client’s ability to succeed in permanent housing; c. Knowledgeable about community resources and the means of accessing them; and d. Possesses the attitudes, knowledge, and skills necessary to work effectively with the population to be served by the housing. Funding Availability/Limits For the purposes of this RFP, Mecklenburg County CSS will allocate up to $800,000 for supportive services over two to three fiscal years depending on recipient performance, funding availability and the eligible population served. The contract will be for one year unless terminated pursuant to the terms and conditions of the contract. 3.3 Rental Assistance List the intended or accounted for rental assistance source(s) as part of your funding request. This should be new rental assistance because this RFP seeks to build upon the current projects that have received funding in the community. Examples of rental assistance include, but not limited to, project-based vouchers, Housing Choice vouchers, and rental subsidy. Describe the source and the target population to be served with the rental assistance. Note: Mecklenburg County Community Support Services will not support a project request that does not include a source of rental assistance either intended or accounted for prior to application submittal. 3.4 Services Personnel Budget Provide the anticipated line-item personnel budget for the services to be provided, including a budget narrative explaining each line item and any one-time costs funded by Mecklenburg County HSS funds under this request. (This may include operating expenses related to the Homeless Management Information System “HMIS” system.) Download and complete the Supportive Service dollars budget Excel form (Form E) and attach with your agency’s RFP proposal. http://charmeck.org/mecklenburg/county/CommunitySupportServices/HomelessServices/Housin g-Stability-Funding/Pages/default.aspx 21 3.5 Minimum Requirements Service Provider shall procure all necessary permits and licenses and abide by all applicable laws, regulations and ordinances of all Federal, NC State, and local governments in which work under any resulting contract is performed. These minimum requirements must be met and documents must be included with the proposal before your company’s qualifications will be considered. a. Evidence of adequate insurance is required, specifically to meet the following standards: Automobile Liability-minimum $1,000,000; Professional Liability-minimum $1,000,000; Commercial General Liability-minimum $1,000,000; Worker’s Compensation and Service Providers Liability – State of North Carolina statutory requirements. b. Mecklenburg County Business License; submit receipt showing payment. c. Secretary of State Certificate of Authority if Service Provider out of state. d. Articles of Incorporation, if applicable. e. For any proposal to be considered responsive, the successful bidder shall be required to provide an affidavit attesting that the company is in compliance with the E-Verify provisions of Article 2 of Chapter 64 of the North Carolina General Statutes and shall ensure that any subcontractors used by Service Provider on this County Project will also comply with the E-Verify provisions. See attached CONTRACTOR E-VERIFY DECLARATION form which must be used (Form F). f. Complete M/W/SBE COMPLIANCE and M/W/SBE UTILIZATION COMMITMENT (Form G) in accordance with Mecklenburg County. g. Cost Effectiveness and Value Provide an itemized budget using the template provided on the website. (Cost must include all aspects of the project). h. Overdue Taxes 22 Provide certification and sworn statement on official company letterhead as evidence that service provider does not have any federal, state or local overdue tax debts as defined by N.C.G.S. 105-243.1. i. Financial Statements: Service Providers with total revenue, from all sources, of more than one hundred thousand dollars ($100,000) in annual funding are required to submit an annual Audited Financial Statement (AFS) prepared by a Certified Public Accountant. The AFS must include the following: Balance Sheet, Statement of Financial Position or Statement of Assets, Liabilities and Owner’s Equity. Statement of Income or Statement of Revenues and Expenses. Statement of Cash Flows. Independent Auditors’ Opinion. Notes to Financial Statements and Supplement Information. (The Notes to the Financial Statements are required as they provide additional detail and further explanation of the financial statements.) The AFS may also include additional information such as management discussion, analysis, schedules, and/or exhibits that provide further detail on line items included in the basic financial statements. Service providers with total revenue, from all sources, of less than one hundred thousand dollars ($100,000) in annual funding are required to submit at a minimum an Annual Financial Compilation prepared by a Certified Public Accountant. An AFC refers to financial statements that include the following: Balance Sheet, Statement of Financial Position or Statement of Assets, Liabilities and Owner’s Equity. Statement of Income or Statement of Revenues and Expenses. Statement of Cash Flows. j. Complete Conflict of Interest form (Form H). 3.6 Performance Measures/Quality Assurance If awarded funds, your organization is required to participate in an ongoing program of Quality Assurance Monitoring and Program Review of both the housing and services components of the projects. This program will examine service program operations and client outcomes. If this is a collaborative submission, all participating organizations must be willing to participate in such a process. 23 The service provider should provide examples of management reports that are used specific to this service that will demonstrate the commitment to data driven management. In addition, the service provider should provide examples of productivity or utilization reports in reference to this service and explain how the information is used to improve business practices and care to consumers. The service provider must provide statistics on the number of new clients served daily and annually and the number of new housing units developed as part of the agency’s management reports. 3.7 Homeless Management and Information System (HMIS) Agencies receiving funding must participate in entering accurate, timely and high quality data into HMIS, the new homeless management and information system. Funders at all levels will increasingly rely on HMIS data to measure program system level performance. In order to receive awarded funds reimbursable under the contract, agencies must demonstrate that they are able to participate in HMIS reporting system requirements (i.e., access to the HMIS system, trained employees for data entry, ability to collect data on HUD measures, etc.) Project proposal budgets may apply for funding to cover the costs associated with implementing HMIS for this project only (i.e., one-time cost associated with purchasing the license agreement, computer, etc.) For example, you can include a portion of the personnel costs associated with the staff person who would be responsible for entering data into HMIS and running reports as part of this project only. If applicable, include the associated expenses in the Supportive Services Excel budget form (Form E). (The Excel budget form can also be downloaded from the County’s website.) Agencies may only use Mecklenburg County Housing Stability & Supportive Services funding one time for this expense and may not ask for additional funding in future Housing Stability & Supportive Services RFP’s. 3.8 Commitment to Participate in Homeless System Development and Coordination Project sponsors and partner agencies demonstrate a long-term commitment to accept clients through the current Coordinated Assessment intake process. Projects awarded funds will be required to participate in coordinated system efforts led by the City of Charlotte, Mecklenburg County, and the Charlotte-Mecklenburg Coalition for Housing and the Homeless Services Network. 24 25 4. City of Charlotte Housing Trust Fund 26 Program Guidelines The City of Charlotte provides funding for newly constructed rental units and or the rehabilitation of existing housing units serving households earning 60% or below the Area Median Income. Rental housing developments serving households earning 30% or below the AMI will be given priority for funding. Developments requesting the City of Charlotte Housing Trust Fund (“HTF”) as a source of funds must meet all general conditions, guidelines and City Council approved housing policies. Please review the City of Charlotte Housing Trust Fund General Conditions and Loan and Grant Guidelines, which are available on the City of Charlotte website. http://charmeck.org/city/charlotte/nbs/housing/Pages/rfp.aspx. The City’s financing is generally soft “gap” financing. To allow for future investment in affordable housing, the City seeks to achieve a reasonable return of capital and where possible a return on investment based on the economics of each proposal. The City allows flexibility for creativity by development teams by establishing loan terms based on the economics of each proposal. The City reserves the right to adjust financing on a case-by-case basis based on changes in conventional lending and other financing sources. Loans may range from 20 year, deferred at 0% interest to 20 year, amortizing at the Long Term Applicable Federal Rate (AFR) based on economic analysis of the development. The primary tool used to perform the economic analysis is the Debt Coverage Ratio (DCR). Developments with a DCR greater than or equal to 1.25 will be considered for a fully amortizing loan with a corresponding rate that either achieves a DCR of 1.15 or the maximum Long Term AFR. Developments that have a DCR of less than 1.25 will be considered for interest only loans. The interest rate will be set at a percentage rate that will achieve a DCR of 1.15. Developments that are submitted at a DCR of 1.15 will be considered for a deferred cash flow loan. Grants are considered when a development serves a substantially underserved population. A development with a DCR greater than 2.0, after the application of a fully amortizing loan at the Long Term AFR will be considered over subsidized. The funding request will be reduced to achieve a DCR of 1.75. This may result in the funding request being reduced to zero. Developments of this nature are candidates for private financing. The City prefers to take or share a first lien position on assets financed with its loan proceeds. The City will accept a second or third lien position (subject to the amount of the loan funds financed by the City). 4.1 Funding Availability/Limits The City of Charlotte will allocate up to $1,500,000 from existing HTF dollars for the purpose of funding cost associated with the development of supportive housing. Funding is available in the form of a loan or grant from the City of Charlotte. The City reserves the right to adjust its 27 loan/grant policies and guidelines as needed to address changing market demands and the priorities of the City. All funding is subject to City Council approval. Loan/Grant amounts may vary based on the following: number of housing units being developed, leverage ratio of the development, and City’s budget for housing development. The City will also consider the needs of the development, the experience of the borrower and any associated risk in the development. To achieve leverage ratio targets, the City will fund up to a maximum of fifty percent (50%) of the eligible unit per square foot cost for a housing development. The City reserves the right to adjust the maximum loan amount to any borrower on an exception basis. Note: The source of funds may impose additional restrictions on the borrower. 4.2 Design & Energy Efficiency Standard and Site Evaluation All Supportive Housing Developments funded through the City of Charlotte - including licensed housing or facilities, licensed substance abuse treatment programs and emergency shelters - must comply with Site Evaluation and the North Carolina Supportive Housing Design and Energy Efficiency standards adapted from the Low Income Housing Tax Credit (LIHTC) design standards per (Form – I): Appendix 1– Design Standard for New Construction, Substantial Rehab and Adaptive Re-use Appendix 2 – Energy Efficiency Appendix 3 – Site Evaluation 4.3 Selection Criteria The selection criteria consider the basic components of any real estate investment: feasibility, team experience, capital structure, and population served. Applications that propose quality housing that most cost-efficiently provide the greatest number of units for the longest period of time for the lowest-income residents, and which respond to a strategy to address housing needs of the populations identified in this RFP will have the greatest likelihood of receiving funding. Below is the development rating system for the City of Charlotte Housing Trust Funds: 4.3.1 Development Strengths (27 points) a. Period of Affordability Less than 20 Years 20 to 40 Years 40 to 50 Years 50 Years or more 2 points 4 points 6 points 7 points 28 b. Number of Affordable Units with the Development Less than 20% 2 points Between 20% to 35% 4 points Between 36% to 50% 6 points Between 51% and 65% 8 points 60% or more 10 points Affordable units are defined as the percentage of the total units made affordable to households earning 60% or below the area median income. Housing developments located within an identified transit station area may set aside a minimum of 5%, but no more than 25% of the units for income eligible households. c. Income Levels Served Percentage of units serving those earning 30% AMI or below 10% to 25% of units 4 points 26% to 40% of units 6 points 41% to 55% of units 8 points Greater than 55% of units 10 points This program is directed primarily toward rental housing developments serving in whole or part households earning 60% or less of the area median income (AMI) with a priority given to rental developments serving households earning 30% or less than the AMI. 4.3.2 On-site Supportive Services and/or Programs(10 Points) Points will be awarded based on the intensity of services and the type of services offered. Eligible services can be provided by on-site staff, outside provider and/or volunteers. 4.3.3 Development Team & Supportive Services Experience (20 Points) A. Track Record with Similar Development(s) – for Developer –up to 5 points Experience with up to 5 similar developments Experience with more than 5 similar developments 3 points 5 points The developer must demonstrate a track record of developing developments similar to the one proposed. The points awarded in this category are based solely on the developer’s experience. Similar developments are defined as similar to the proposed development. 29 The Developer should have an active role throughout the duration of the development in the developments identified, (i.e. decision maker, principal). B. Development Team Experience with Similar Developments up to 5 points Experience with up to 5 similar developments Experience with more than 5 similar developments 3 points 5 points Points in this category are based on the experience of the entire development team including but not limited to the developer, general contractor and architect. Similar developments are defined as similar to the proposed development. C. Property Management Experience with Similar Developments up to 5 points Experience with up to 5 similar developments Experience with more than 5 similar developments 3 points 5 points A maximum of five points can be earned in this category based on experience with subsidized units combined with specific experience with developments similar to the proposed development. A property manager must at a minimum have over two years of experience with one development that is similar to the proposed development. 4.3.4 Financial Strength (23 Points) A. Amount of Public Funding (Leverage Ratio) Less than 1:00 to1:00 1 point 1 to 1:00 to1.99 2 points 1 to 2:00 to 2.99 4 points 1 to 3:00 to 3.99 6 points 1 to 4:00 to4.99 8 points 1 to 5:00 or greater 10 points Note: The leverage ratio: public funds divided by other financing 30 B. Public Investment Per Eligible Unit/Room/Bed Over $40,000 $30,000 to $40,000 $20,000 to $29,999 $10,000 to $19,999 Less than 10,000 2 Points 4 Points 6 Points 8 Points 10 Points C. Debt Coverage Ratio The debt coverage ratio is based on “hard debt” (debt service contractually obligated to be repaid). The net operating income over the debt service determines debt coverage ratio. Developments without “hard debt,” earn 3 points. Less than 1.15 1.15 to 1.20 Greater than 1.21 to 1.25 Greater than 1.25 0 Points 3 Points 2 Points 1 Points 4.3.5 Population Served (20 Points) Homeless - persons sleeping in 5 points emergency shelters or places not meant for human habitation Special Needs Populations – veterans, 5 points persons with mental, physical or development disabilities, or as otherwise defined by HUD. Combination of supportive housing 5 points populations 4.3.6 Bonus Points (up to 25 Points) A. Green Building Techniques/ Housing Efficiencies -All new construction developments must comply with Energy Star standards. The following Green Building Techniques and or Housing Efficiencies are eligible for consideration of bonus points: Energy efficiency and renewable energy Sustainable site planning Safeguarding water quality and water efficiency Conservation of materials and resources Indoor environmental quality 31 One Green Building Technique Two to Three Green Building Techniques 2 points 3 points Four to Five Green Building Techniques 4 points Greater than five Green Building 5 points Techniques Note: Developers should specify green building techniques that are not included above. B. Development in an identified Transit Station Area as approved in the : Assisted Multi-Family Housing At Transit Station Areas Policy, may earn 10 points C. Proximity to Amenities and Services: Development located within 1/2 mile of the following: medical facilities (including pharmacy); groceries and; mass transportation Medical facilities or groceries only, earns 4 points Public Transportation or two other amenities/services, earns 6 points Public transportation plus one other amenity/service, earns 8 points All three amenities/services, earns 10 points 32 SUPPORTIVE HOUSING DEVELOPMENT PROJECT RATING SYSTEM Points Development Strengths – (27% of Total Score) Period of Affordability 7 Number of Affordable Units within the Development 10 Income Level Served Total Maximum Points 10 27 Development Team Experience & Supportive Services (30% of Total Score) On-site Supportive Services 10 Development Team Experience with Similar Developments Total Maximum Points 20 30 Financial Strength - (23% of Total Score) Amount of Public Funding Requested (Leverage) 10 Public Investment per Eligible Unit 10 Debt Coverage Ratio or No Debt Allowance Total Maximum Points 3 23 Population Served- (20% of Total Score) Homeless families (HUD Definition) 5 Special Needs - Veterans & HUD Definition of Special Needs Population 5 Combination of Homeless families, Elderly and/or Special Needs Total Maximum Points 10 20 Total Points 100 Bonus Points – (up to 25%) Housing Efficiencies/Green Building Techniques 5 Development in a Transit Station Area 10 Proximity to Amenities and Services Total Maximum Bonus Points 10 25 33 Required Submission Documents All documents can be found at http://charmeck.org/city/charlotte/nbs/housing/Pages/rfp.aspx OR Housing Stability Fund a. Form A - Joint Funding Application for Supportive Housing b. Form B - Operating Pro Forma Operating Budget for the real estate development and provide a narrative explanation of budget items. c. Form C – Capital Sources Provide a narrative description of funding commitments for all sources of funds, other than those being applied for through this RFP. d. Form D - Sketch Plan Application Preliminary design documents, including site and floor plans e. Evidence of Site Control Site control and required zoning can be exhibited through an option to purchase, purchase contract, executed deed or a City-approved lease of at least as long as the requested loan term or period of affordability. f. Determination of Fair Market Value Development appraisal or a third party assessment, which determines fair market value and replacement cost will be accepted g. Other Funding Commitments All letters of commitment for capital funding sources h. Area Map Map with location and directions to the site i. Form E – Supportive Services Budget Excel Spreadsheet (Complete if applying for County funding.) j. Form F – Contractor E-Verify Declaration Form (Complete if applying for County funding.) k. Form G – M/W/SBE Form M/W/SBE Compliance (Complete if applying for County funding.) l. Form H – Conflict of Interest Policy (Complete if applying for County funding.) m. Form I – Appendix 1, 2, and 3 ( Applying for City Funding) 34 6. APPENDICES 35 Appendix A For the purposes of this RFP, the available funding includes capital and supportive service dollars. Funding Partners by Type of Funding Available Capital to Develop New/Existing Housing City of Charlotte – N&BS Housing Services Supportive Services X Mecklenburg County Community Support Services X 36 APPENDIX B RFP Review and Selection Process Flow Chart RFP Applications are received by CSS. Which funding source is requested?1 RFP application is forwarded to appropriate funding source committee for review. (See RFP Checklist.) HTF Review Sub-Committee HSS Review Sub-Committee Reviews, scores and makes recommendations on Housing Trust Fund (“HTF”) dollar RFP applications. City of Charlotte representatives. Reviews, scores and makes recommendations on Housing Supportive Services (“HSS”) dollar RFP applications. Mecklenburg County representatives. Collaborative Partner Review Committee Reviews sub-committee RFP application recommendations and awards agency contract. All sub-committee representatives. All City funding is subject to approval by Charlotte City Council. RFP applicant is notified and awarded contract. 37 1 RFP Applicant can apply for both funding sources and /or one funding source. APPENDIX C DEFINITIONS2 Affordable Housing is non-time limited housing that is available to target populations with incomes less than 30 percent, 50 percent, or 60 percent of area median income (“AMI”). The target population must meet the AMI requirements to be eligible for affordable housing. For the purposes of this RFP, at least 60% of the target population must be less than 30 percent AMI. Capital for Housing is costs associated with construction, rehabilitation, acquisition, and other associated development costs. These are one-time costs associated with developing the housing structure. Chronically Homeless means an unaccompanied homeless individual (18 or older) with a disabling condition OR a family with at least one adult member (18 or older) who has a disabling condition who has either been continuously homeless for a year or more OR has had at least four episodes of homelessness in the past three years. The disabling condition can include mental illness, chronic substance abuse, HIV/AIDs, physical disability or developmental disability. Continuum of Care is a coordinate community plan to organize and deliver housing and services to meet the specific needs of people who are homeless as they move to stable housing and maximum self-sufficiency. It includes action steps to end homelessness and prevent a return to homelessness. Diversion is a strategy that prevents homelessness for people seeking shelter by helping them identify immediate alternative housing arrangements and, if necessary, connecting them with services and financial assistance to help them return to permanent housing. A Homeless Family is one or more adults (18 or older), a pregnant woman (18 or older) or a legal caregiver with at least one child under 18, who is residing in the home or is in the process of reunifying with their parent or custodian. Parents who are in the process of reunifying with their children must demonstrate that there is a clear plan in place for the custody of the children to be restored. Housing Choice Project-based voucher is a form of rental assistance whereas the local Housing Authority contracts directly with the housing owner. The subsidy is directly attached to a specific number of units in a development. Typically, the term is 15 years with five year renewals up to a maximum of 40 years. The housing owner is required to have a memorandum of understanding with a service provider and to ensure that tenants are provided the services they need. 38 Imminent Risk of Homelessness are those who will lose their primary nighttime residence with no subsequent residence, resources, or support networks within 14 days. Non-time limited or Permanent Housing is independent community-based housing that has no artificial time-limit on tenancy or specific service requirement as a condition of tenancy albeit services may be provided depending on the residents served. Residents hold rental agreements and can stay in the housing as long as they choose and as long as they are in compliance with their rental agreement or lease. Non-time limited housing is also referred to as “permanent housing.” The use of the word “permanent” does not imply an expectation or requirement that the tenant will stay in the unit indefinitely. “Permanent” means only that the housing is not artificially time-limited. Prevention Activities or programs designed to prevent the incidence of homelessness, including, but not limited to: short-term subsidies to defray rent and utility arrearages for families that have received eviction or utility termination notices; security deposits or first month’s rent to permit a homeless family to move into its own apartment; mediation programs for landlord-tenant disputes; legal services programs that enable representation of indigent tenants in eviction proceedings; payments to prevent foreclosure on a home; and other innovative programs and activities designed to prevent the incidence of homelessness Rapid Rehousing is a strategy that has proven effective in ending homelessness by helping homeless households return to housing as soon as possible. It is targeted to people are who are homeless but have lived independently in permanent housing at some point. The focus of this strategy is to address obstacles related to access to affordable housing due income and/or strained rental histories. Rehabilitation includes activities that are major in scope including but not limited to: structural, mechanical and electrical repairs, roof, windows, doors and work required when it has been determined that the useful life is 5 years or less and developments where rehabilitation is needed to make the units habitable. Repairs such as painting, replacing floor covering, and trim work are only eligible when they are part of a larger development. Rehabilitation proposals must: Have been placed in service on or before December 31, 1998 Require Rehabilitation expense in excess of $15,000 per unit Not have acquisition cost in excess of 60% of the total replacement costs Not have begun or completed a full debt restructuring under the Market to Market process (or any similar HUD program) within the last 5 years. 39 Not deteriorated to the point of requiring demolition Rental Assistance pays for a portion of the client’s rent for a particular housing unit or housing building. Supportive Services includes outreach and engagement, case management, information and referral, mental health and/or substance abuse treatment, healthcare, employment and job skills training, life skills training and housing stability. Typically, services are offered “on-site,” which means the case manager comes to the housing unit. Clients are not required to access or utilize supportive services as part of award. However, services must be made readily available, funded and appropriate for the target population served. Level of Supportive Services varies and depends on the needs of the target population served. The level of supportive services is determined by the case manager, during the intake and assessment process. 2 High level of supportive service means care is long-term in nature and is critical for housing stability. High level services include intensive, comprehensive, readily available (on-site) case management services. As a result, this level of service is the most costly because the need is great. Medium level of supportive service means care is for a period of time and may taper off and perhaps go away as a person becomes stable in housing. Services will be available on-site through case management visits. Visits could be weekly or monthly, depending on the results of the case manager’s assessment. Low level of supportive service means care is provided as needed and usually to target populations that are in transition from homeless to housing. Case management services are typically time-limited and less frequent in nature. These “check-ins” may be provided on or off site. Sources for definitions include HUD and King County, WA RFP. 40 APPENDIX D RFP Review Committee and Sub-Committee Member Composition Housing Trust Fund (“HTF”) Review Sub-Committee Funder: City of Charlotte Funding Source: Housing Trust Fund Funding Use: Rental Housing, New Construction and Rehabilitation Name Zelleka Biermann Warren Wooten Pamela Wideman Department Neighborhood & Business Services Neighborhood & Business Services Neighborhood & Business Services Housing Stability and Supportive Services (“HSS”) Review Sub-Committee Funder: Mecklenburg County Funding Source: General Fund or tax dollars Funding Use: Personnel for delivery of supportive services Name Stacy Lowry Karen Pelletier Jamie Privuznak Department Community Support Services Community Support Services Community Support Services Collaborative Partner Review Committee Name Agency Zelleka Biermann City of Charlotte Warren Wooten City of Charlotte Stacy Lowry Mecklenburg County Karen Pelletier Mecklenburg County 41