Development and Service Integration Committee Thursday, December 15, 2011 333 West Trade Street, Suite 200 10:00 – 11:30 a.m. Committee Members: Staff Resources: David Furman, Facilitator David Jones Renata Henderson Pat Mumford, Ex‐Officio Member Zelleka Biermann (City) Ray Holt (CHA) Helen Lipman (County) AGENDA Action Items: I.
II.
Update on 333 Hawthorne Lane Possible Committee Expansion Approve Supportive Housing RFP/RFQ to be issued February 2012 III.
Attachment: I.
Supportive Housing RFP/RFQ Document Next Meeting Date: Wednesday, January 20, 2012 @ 333 West Trade Street, Suite 200 Charlotte-Mecklenburg Coalition for Housing
Supportive Housing Development – FY2012 Program Year
RFP Submission Requirements and Evaluation Criteria
Section I: Purpose
The City of Charlotte, Mecklenburg County & the Housing Authority of the City of
Charlotte are now accepting proposals for Supportive Housing Development (new
construction, rehabilitation and acquisition/rehabilitation). Supplemental funding is
available for projects in the approximate amounts:
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City of Charlotte Housing Trust Fund Capital: $7.3M
Charlotte Housing Authority Capital:
$ TBD
Charlotte Housing Authority Operational Section 9 Subsidy: TBD units
Mecklenburg County Supportive Services Funding: $ TBD (assistance for
supportive services and/or social work staff)
Capital Funding may be in the form of a loan or grant for the development of Supportive
housing on land and/or structures controlled by the proposer. Operating Support, Rental
The RFP Schedule is shown below:
Activity
Pre-Submission Conference:
Neighborhood and Business Services – Housing Services
600 East Trade Street
Charlotte, NC 28202
Issue Request for Proposal
Cut-off Date for RFP Questions
Proposal Due Date
Neighborhood and Business Services – Housing Services
600 East Trade Street – Suite 109
Charlotte, NC 28202
Proposal Clarification Period
Scheduled Date
Thursday January 19, 2012
10:00 a.m.
Thursday, February 9, 2012
Thursday, February 16,
2012
Friday, February 24, 2012
By 5:00 p.m.
March 5, 2012 to
March 12, 2012
April 2012
Selection of Proposals for Funding Recommendation By
Staff
Housing & Neighborhood Development Committee
April/May 2012
recommendation
City Council, County Commission & CHA Board Approval
May/June 2012
** The above dates are subject to change at the discretion of the City of Charlotte
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The Supportive Housing Request for Proposal will have the following application schedule for
additional funding rounds, based on the availability of funds:
Round 2
Round 3:
Proposal Due Date
September 11, 2012
February 12, 2013
Issue Request for Proposal
July 16, 2012
December 12, 2012
Section II: Submission Requirements – Supportive Housing
2.0
Application Submission
The proposal (application and attachments) must be submitted on Flash Drive, Disk, or
other electronic media.
2.1
Applicant Should Supply The Following Information (Development):
A. Description of the applicant’s expertise in developing and operating housing
developments to include:
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General contractor’s track record and experience
Property Management experience with similar developments
Development team is subject to meet Small Business Enterprise (SBE)
requirements to ensure that the city continues its commitment to enhance
opportunities for small business. Charlotte Housing Authority will have Section
3, Women and Minority Business Enterprise (WMBE) and Davis Bacon
requirements
B. Minimum of three (3) references that can speak directly to the applicant’s
development experience.
C. Applicant’s financial statements prepared by a certified public accountant for current
year and previous year.
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Most recent independent audit
Auditor’s management letter
D. Applicant’s organization/background information:
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Legal name of business
Director/President/Managing Member of the organization
Articles of Incorporation and current bylaws
IRS 501c(3) determination letter (if non-profit)
Type of Organization, (corporation, general partnership, Limited Liability
Corporation, etc.)
List of Board of Directors (Include address and telephone numbers). List officers
and their positions
Current organizational chart
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Federal Tax ID# or Social Security # of owners
States in which currently doing business as Supportive Housing developer
E. Complete disclosure of any outstanding judgments.
F. Certificate of Good Standing from the North Carolina Secretary of State or State
where the developer/development team is incorporated.
G. Verification that all state and federal taxes, including IRS withholdings are current.
H. The City conducts criminal background checks. The background checks will not be
the sole basis of a loan/grant decision, but will be a factor in considering an
application for funding. The City will also verify with the U.S. Department of
Housing and Urban Development that the development team members are not on its
“debarred” contractor’s list.
2.2
Applicant Should Supply The Following Information (Supportive Services):
I. Description of the applicant’s expertise in developing and operating supportive
services to identified populations to include:
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Agencies’ track record and experience with identified population
Staff experience, education and training (?include resume of all staff involved in
this project)
Agency and Staff experience with similar populations and support services
J. Minimum of three (3) references that can speak directly to the applicant’s supportive
services and identified population experience.
K. Applicant’s financial statements prepared by a certified public accountant for current
year and previous year.
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Most recent independent audit
Auditor’s management letter
L. Applicant’s organization/background information:
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Legal name of business
Managing Members of the organization
Articles of Incorporation and current bylaws
IRS 501c(3) determination letter (if non-profit)
Type of Organization, (corporation, general partnership, Limited Liability
Corporation, etc.)
List of Board of Directors (Include address and telephone numbers). List officers
and their positions
Current organizational chart
Federal Tax ID# or Social Security # of owners
States in which currently conducting businesses
M. Complete disclosure of any outstanding judgments.
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N. Certificate of Good Standing from the North Carolina Secretary of State or State
where the agency is incorporated.
O. Verification that all state and federal taxes – including IRS withholdings are current.
P. The City conducts criminal background checks. The background checks will not be
the sole basis of a loan/grant decision, but will be a factor in considering an
application for funding.
2.3
Project Information
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Description and scope of the project, including its history, goal and population
served
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Number and types of units (i.e. affordable)
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Income levels to be served (specify the number of units at each income level
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Statement of the purpose of the loan/grant request and projected impact on the
project
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Statement of project costs and verification of any committed and/or anticipated
funding for the project (i.e. approval letters, letters of intent, and feasibility letters).
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Statement of details of any pending litigation.
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Project appraisal or a third party assessment, which determines fair market value
and replacement cost will be accepted.
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Map with location and directions to the site
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Proximity to amenities – medical, groceries and mass transportation
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Legal description of real estate
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Zoning and deed restrictions
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Utility availability letters
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Description of any significant site condition(s), i.e environmental, topography
and soils conditions
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Description of historically significant conditions requiring Historic Review (if
applicable)
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The number of years the unit will remain affordable (period of affordability).
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Description any community/neighborhood meetings regarding the proposed project
and actions taken to mitigate neighborhood opposition or letters of
recommendation indicating community support.
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Description of project oversight that will be used to manage the development, such
as property maintenance, resident safety and asset management plan that
documents policies, strategies, financing plans and reporting systems that are used
to sustain and ensure the continued viability of the development.
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Real Estate Taxes - State in detail the assumption used to arrive at the annual real
estate taxes proposed in the pro-forma.
2.4 Supportive Services Information
ƒ Description of any supportive services and the hours per week per unit.
ƒ Detailed management plan for the designated Supportive population.
ƒ Resident Service Plan
ƒ Coordination of Care to residence
ƒ Coordination with property management
ƒ Staff Client Ratio
2.5
Graphic Illustrations (8-1/2 X11) – Color preferred
ƒ Site Plan
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Building elevations/renderings
Floor plans
2.6
Project Readiness and Feasibility
ƒ Evidence of site control – (Site control 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).
ƒ Compliance with local planning, zoning and flood plain requirements
2.7
Project Financing
ƒ Statement detailing use of the City grant proceeds
ƒ Proposed sources and uses of funds (include all sources of project funding)
ƒ Proposed project schedule (includes dates for initial closing, construction start,
substantial completion, lease up and occupancy
ƒ Project budget
ƒ Proposed project proforma (with assumptions, rents, % of annual change in income
and expenses) 20-year proforma for multi-family rental developments
ƒ Detail of developer fees and equity shares.
2.8
Eligible Rehabilitation
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 projects 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 project.
Rehabilitation applications must:
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Have been placed in service on or before December 31, 1996
Require Rehabilitation expense in excess of $15,000 per unit as supported by a
physical needs assessment completed within 12 months of application
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 last 5 years.
Not deteriorated to the point of requiring demolition
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SECTION III - EVALUATION CRITERIA – SUPPORTIVE HOUSING
Complete proposals submitted to the City will be reviewed, evaluated and scored based on the
following criteria:
% within
Category
Rating
Points
Period of Affordability
7%
7
Number of Affordable Units within the Development
31%
10
Income Level Served
31%
10
On-Site Supportive Services and/or Programs
31%
10
100%
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Track Record with Similar Development (s) – for Developer
25%
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Development Team Experience with Similar Developments
20%
5
Property Management & Experience with Similar Developments
20%
5
Agency Supportive Service Experience with identified population
20%
5
Staff Experience with Supportive Services for identified population
15%
4
100%
25
Amount of City Funding Requested (Leverage)
43%
10
City Investment per Eligible Unit
43%
10
Debt Coverage Ratio or No Debt Allowance
14%
3
100%
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Elderly
10%
5
Homeless families (HUD Definition)
20%
10
Special Needs - Veterans & HUD Definition of Special Needs Population
30%
10
Combination of Homeless families, Elderly and/or Special Needs
40%
15
Total Maximum Points
100%
15
Housing Efficiencies/Green Building Techniques
20%
5
Development in a Transit Station Area
40%
10
Proximity to Amenities and Services
40%
10
100%
25
Categories
Development Strengths – (37% of Total Score)
Total Maximum Points
Development Team & Supportive Services Experience – (25% of
Total Score)
Total Maximum Points
Financial Strength - (23% of Total Score)
Total Maximum Points
Priority Population - (15% of Total Score)
Bonus Points
Total Maximum Bonus Points
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EVALUATION CRITERIA – Supportive Housing
Definitions and Points:
Development Strengths – 37% of Total Score (52 Points)
A.
Period of Affordability
ƒ Less than 20 Years earns 2 point
ƒ 20 to 40 Years earns 4 points
ƒ Between 40 to 50 Years earns 6 points
ƒ Greater than 50 Years earns 7 points
B. Number of Affordable Units with the Development
ƒ Between 20% to 35%, earns 4 points
ƒ Between 35% to 50%, earns 6 points
ƒ Between 50% to 65%, earns 8 points
ƒ Greater than 65%, earns 10 points
Affordable units defined as the percentage of the total units that are made affordable to
households earning 60% or less than the area median income. At least twenty percent 20%
of the units within a development must be set-aside for income eligible households in
order to be considered for this program. However, housing developments located within
transit station areas 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 at 30% AMI or Less
Points Earned
AMI of Total Units
10% to 25% of units
26% to 40% of units
41% to 55% of units
Greater than 55% of units
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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. On-Site Supportive Services and/or Programs – Points will be awarded based on the
intensity of services and the type of services offered. Eligible services can be provided by onsite staff, outside provider and/or volunteers, earns up to 10 points. (See table on next page)
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On-Site Supportive Services Provided
Points
Earned
On-Site Healthcare component provided: 2 hours per week
4 hours per week
Supportive Activities that promote self-sufficiency
Example: Grocery store trips, money management, cooking classes
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4 activities per week (minimum of 1 hour in length)
8 activities per week ( minimum of 1 hour in length)
12 activities per week (minimum of 1 hour in length)
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Case Management Services:
Permanent/SRO: A ratio of 1 case manager per 15 residents
Shelter: A ratio of 1 case manager per 35 residents is to be provided
20 hours per week
40 hours per week
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Development Team Experience – 25% of Total Score (25 Points)
1. Track Record with Similar Development(s) – for Developer -6 points
2. Track Record with supportive services delivery to identified population – for
Supportive Service Provider:
ƒ No experience, earns 0 points
ƒ Experience with up to 5 similar developments, earns 3 point
ƒ Experience with more than 5 similar developments, earns 5 points
The developer must demonstrate a track record developing projects 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 project. The
Developer should have an active role throughout the duration of the project in the projects
identified, (i.e. decision maker, principal).
3. Development Team Experience with Similar Developments
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No experience, earns 0 points
Experience with up to 5 similar developments, earns 3 points
Experience with more than 5 similar developments, earns 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 project.
4. Property Management Experience with Similar Developments
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No experience with subsidized units, earns 0 points
Experience with subsidized units (i.e. Tax Credits, Section 8, etc.), earns 3 points
Specific experience – projects similar to the proposed development, earns 5 points
A maximum of four points can be earned in this category based on experience with
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subsidized units combined with specific experience with developments similar to the
proposed development. A property manager must at a minimum have over two years
experience with one development that is similar to the proposed development.
Financial Strength – 23% of Total Score (23 Points)
1. Amount of City Funding (Leverage)
Leverage Ratio
Less than 1 to1
1 to 1-1.99
1 to 2-2.99
1 to 3-3.99
1 to 4-4.99
1 to 5 or greater
Points
Earns 1 Points
Earns 2 Points
Earns 4 Points
Earns 6 Points
Earns 8 Points
Earns 10 Points
Note: The leverage ratio: HTF funds divided by other financing
2. City Investment Per Eligible Unit/Room/Bed
Permanent /SRO
Housing Per Unit
Over $40,000
$30,000 to $40,000
$20,000 to $29,999
$10,000 to $19,999
$10,000 or less
Points
Earned
2 Points
4 Points
6 Points
8 Points
10 Points
3. 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. Projects without “hard debt,” earn 3 points.
Debt Coverage Ratio
Less than 1.15
1.15 to 1.20
Greater than 1.20 to 1.25
Greater than 1.25
Points
Earns 0 Points
Earns 3 Points
Earns 2 Points
Earns 1 Points
Priority Population – 15% of Total Score (10 Points)
Population Served – Special Needs population is defined as individuals/households, who are:
A. Elderly - Minimum age of 62 years and not a member of the homeless and nonhomeless with Special Needs population as stated below, earns 5 points
B. Homeless – persons sleeping in emergency shelters or places not meant for human
habitation, (i.e. cars, parks, abandoned buildings), earns 10 points
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C. Special Needs, persons with:
1.
2.
3.
4.
5.
6.
7.
D.
Veterans (including veteran families & singles), earns 10 points
Mental disabilities, earns 10 points
Physical disabilities, earns 10 points
Developmental disabilities, earns 10 points
Substance use disorders, earns 10 points
Diagnosed with AIDS/HIV, earns 10 points
Other special populations. As approved by the Charlotte-Mecklenburg Coalition for
Housing Advisory Board, earns 10 points. (Other special populations must be
described in detail).
A total of 15 total points can be earned for a combination of supportive housing
population served, (i.e. elderly and disabled).
Bonus Points – Maximum of 25 Points
1. Green Building Techniques/ Housing Efficiencies - All new construction projects must
comply with Energy Star standards. Development that has incorporated green building
techniques including but not limited to the following areas as:
a)
b)
c)
d)
e)
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Energy efficiency and renewable energy
Sustainable site planning
Safeguarding water quality and water efficiency
Conservation of materials and resources
Indoor environmental quality
One green building technique
Two to three green building techniques
Four to five green building techniques
All five green building techniques
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Earns 2 points
Earns 3 points
Earns 4 points
Earns 5 points
Note: Developers should specify green building techniques that are not included above.
2. Development in a Transit Station Area: See Assisted Multi-Family Housing within
Transit Station Areas (General Loan and Grant Guidelines for Housing Development) for
guidelines for Transit Station Area development, earns 10 points
3. Proximity to Amenities and Services: Development is located within 1/2 mile of the
following:
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medical facilities (including pharmacy);
groceries and;
mass transportation
Medical facilities or groceries only, earns 4 points
Mass transportation or two other amenities/services, earns 6 points
Mass transportation plus one other amenity/service, earns 8 points
All three amenities/services, earns 10 points
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