RED WING HOUSING AND
REDEVELOPMENT AUTHORITY
REQUEST FOR PROPOSALS
PROJECT BASED VOUCHERS
RESPONSES DUE:
April 22, 2016 AT 3 PM.
To: Becky Hinrichs
Red Wing HRA
428 West Fifth Street
Red Wing, MN 55068
Scope of Services
The Red Wing Housing and Redevelopment Authority (RWHRA) requests proposals from multifamily housing developers under the Project-Based Voucher (PBV) Program. The PBV program is designed to conform to the Project Based Voucher Program Final Rule published on October 13, 2005 at 24 CFR Part 983.
Description of PBV Program
Through the PBV program, RWHRA will enter into a housing assistance payment contract with a selected property owner for designated rental units for a period of up to 15 years subject to funding availability. Housing Assistance subsidies will be provided while eligible families occupy the rental housing and the units meet other program standards. The project owner will operate a separate site-based waiting list for eligible families for the PBV housing at the property in order to fill in the vacant units. The RWHRA’s published subsidy standards will determine the appropriate unit size for the family size and composition.
RW HRA may authorize PBV assistance for newly constructed housing units.
Certain types of housing units and/or developments are not eligible for PBV assistance including:
1. Shared housing;
2. Units on the grounds of a penal, reformatory, medical, mental, or similar public or private institution;
3. Nursing homes or facilities providing continuous psychiatric, medical, nursing services, board and care, or intermediate care. However, the PHA may attach PBV assistance for a dwelling unit in an assisted living facility that provides home health care services such as nursing and therapy for residents of the housing;
4. Units that are owned or controlled by an educational institution or its affiliate and are designated for occupancy by students of the institution;
5. Manufactured homes;
6. Cooperative housing; and
7. Transitional Housing.
8. High-rise elevator project for families with children.
9. Owner-occupied unit.
10. Units occupied by ineligible families.
11. Subsidized housing units including, public housing units, a unit subsidized with any other form of Section 8 assistance (tenant-based or project-based), a unit subsidized with any governmental rent subsidy (a subsidy that pays all or any part of the rent), a unit subsidized with any governmental subsidy that covers all or any part of the operating costs of the housing, a unit subsidized with Section 236 rental assistance payments (12 U.S.C. 1715z–1), a unit subsidized with rental assistance payments under Section 521 of the Housing Act of 1949, 42 U.S.C. 1490a (a Rural Housing Service Program), a Section 202 project for non-elderly persons with disabilities, Section 811 project-based supportive housing for persons with disabilities (42 U.S.C. 8013), Section 202 supportive housing for the elderly , a Section 101 rent supplement project (12 U.S.C. 1701s), a unit subsidized with any form of tenant-based rental assistance (as defined at 24 CFR 982.1(b)(2)) ( e.g. , a unit subsidized with tenant-based rental assistance under the HOME program, 42 U.S.C. 12701 et seq. ), a unit with any other duplicative federal, state, or local housing subsidy, as determined by HUD or by the PHA in accordance with HUD requirements.
The number of PBV assisted units can not exceed 20% (rounded up) or up to 12 units of the total number of dwelling units in the project.
Site selection standards
A site for a newly constructed housing development must meet the following site and neighborhood standards:
The site falls within the jurisdiction of the city of Red Wing.
The site must be adequate in size, exposure, and contour to accommodate the number and type of units proposed, and adequate utilities (water, sewer, gas, and electricity) and streets must be available to service the site.
The site promotes a greater choice of housing.
The housing must be accessible to social, recreational, educational, commercial, and health facilities and services and other municipal facilities and services that are at least equivalent to those typically found in neighborhoods consisting largely of unassisted, standard housing of similar market rents.
The development must meet full accessibility and Housing Quality Assistance standards.
The development utilizes the PBV to incent Minnesota Housing to award financial assistance to the project.
Activities under the PBV program are subject to HUD environmental regulations in 24 CFR parts 50 and 58.
The owner/developer must agree to develop the units to comply with HQS. The RWHRA may elect to establish additional requirements for quality, architecture, or design of the PBV housing over and above HQS.
The owner and owner’s contractors and subcontractors must comply with all applicable state and federal labor relations laws and regulations, federal equal employment opportunity requirements and HUD implementing regulations. In the case of an Agreement for development of nine or more contract units (whether or not completed in stages), the owner and the owner's contractors and subcontractors must pay prevailing wages to laborers and mechanics employed in development of the housing.
The RWHRA will enter into a Housing Assistance Payments (HAP) contract with the owner selected and approved for the PBV assistance. RWHRA will make housing assistance payments to the owner in accordance with the HAP contract for those contract units leased and occupied by eligible families during the term of the HAP contract, subject to funding availability.
Owner’s Responsibility for Operating with the PBV Units
The owner has a waiting list as well as the Red Wing HRA. The RWHRA may use a separate waiting list for admission to PBV units or may use the same waiting list for both tenant-based assistance and PBV assistance.
The RWHRA may place families referred by the PBV owner on its PBV waiting list.
Except for voucher participants (determined eligible at original admission to the voucher program), the RWHRA may only select families determined eligible for admission at commencement of PBV assistance.
Not less than 75 percent of the families admitted to a RWHRA's tenant-based and project-based voucher programs during the fiscal year from the RWHRA waiting list shall be extremely low-income families. The income-targeting requirements at 24 CFR 982.201(b)(2) apply to the total of admissions to the RWHRA's project-based voucher program and tenant-based voucher program during the fiscal year from the RWHRA waiting list for such programs.
The owner is responsible for screening and selection of the family to occupy the owner's unit.
The owner is responsible for screening of families on the basis of their tenancy histories. An owner may consider a family's background with respect to such factors as:
(i) Payment of rent and utility bills;
(ii) Caring for a unit and premises;
(iii) Respecting the rights of other residents to the peaceful enjoyment of their housing;
(iv) Drug-related criminal activity or other criminal activity that is a threat to the health, safety, or property of others; and
(v) Compliance with other essential conditions of tenancy;
(vi) Providing tenant information to owner.
The PHA must give the owner:
(i) The family's current and prior address (as shown in the RWHRA records); and
(ii) The name and address (if known to the RWHRA) of the landlord at the family's current and any prior address.
The RWHRA must give the family a description of the RWHRA policy on providing information to owners. The RWHRA policy must provide that the RWHRA will give the same types of information to all owners. The protections for victims of domestic violence, dating violence, or stalking in 24 CFR part 5, subpart L, apply to tenant screening.
Determining the Rent to Owner without Low-Income Housing Tax Credit Units
The amount of the rent to owner is determined in accordance with HUD regulations. Except for certain tax credit units, the tenant rent to owner must not exceed the lowest of:
(1) An amount determined by the PHA, not to exceed 110 percent of the applicable fair market rent (FMR) (or any exception payment standard approved by the Secretary) for the unit bedroom size minus any utility allowance;
(2) The reasonable rent; or
(3) The rent requested by the owner.
Determining the Rent to Owner with Low-Income Housing Tax Credit Units
If a contract unit receives a low-income housing tax credit under the Internal Revenue Code of 1986 (see 26 U.S.C. 42), the rent to owner must not exceed the lowest of:
(i) The tax credit rent minus any utility allowance;
(ii) The reasonable rent; or
(iii) The rent requested by the owner.
The “tax credit rent” is the rent charged for comparable units of the same bedroom size in the building that also receive the low-income housing tax credit but do not have any additional rental assistance (e.g., additional assistance such as tenant-based voucher assistance).
The RWHRA shall determine reasonable rent in accordance with §983.303. The rent to owner for each contract unit may at no time exceed the reasonable rent.
When determining the initial rent to owner, the PHA shall use the most recently published FMR in effect and the utility allowance schedule in effect at execution of the HAP contract. Exhibit One attached to this RFP indicates the RWHRA present FMRs and the Utility Allowances.
The same RWHRA utility allowance schedule applies to both the tenant-based and PBV programs.
Lease
The tenant and the owner must enter a written lease for the unit. The lease must be executed by the owner and the tenant.
The RWHRA may review the owner's lease form to determine if the lease complies with HUD regulations, and state and local law. The RWHRA may decline to approve the tenancy if the RWHRA determines that the lease does not comply with HUD regulations or state or local law.
In all cases, the lease must include a HUD-required tenancy addendum. The tenancy addendum must include, word-for-word, all provisions required by HUD.
The initial lease term must be for at least one year.
Application and Application Review
The Developer/Owner should submit the following in their application for the PBV in narrative or spreadsheet format (Items 1-7):
- Description of project proposed to be developed or rehabbed. (15 pts.)
-Highest preference is Workforce Housing
(100% unit rents at 50% AMI with 60% AMI Income requirement)
-Describe amenities of proposed project.
- Feasibility of the project to be developed or rehabbed. (15 pts.)
- Sources and Uses (10 pts)
- Soundness of Sources and Uses (5 pts)
- Why developer is applying for the PBV. (20 Pts.)
-State reason why PBV is necessary to have the project developed or rehabbed.
-Leverage of PVB for feasibility.
- Long-term Operating Budget showing feasibility. (20 pts.)
-10 year pro forma (spreadsheet)
- Experience of the Owner/Developer. (10 pts.)
Describe in narrative fashion. Describe historical project developments.
- Financial Stability of Owner/Developer. (10 pts.)
-Describe ability to sustain development through construction and operation.
- Time frame for project to be developed and operating. (10 pts.)
-Describe proposed timeline for project.
In addition, each applicant should submit the following threshold items:
(i) Evidence of site control of the proposed location.
(ii) Owner certifies that the owner or principals are not on the US General Services Administration list of parties excluded from federal procurement and non-procurement programs.
(iii) Owner states proposed initial rents will comply with stipulations as outlined in this RFP.
(iv) Owner states that the property will meet or exceed the HQS standards.
(v) No construction or rehabbed has begun.
(vi) The proposed housing development is eligible as indicated in this RFP.
The RWHRA will review each application to meet the threshold requirements. If the threshold requirements are met, the RWHRA will review the application’s Items 1-7 and assign a score to each item. A total of 100 points will be possible. The highest three proposals in score will be considered for final selection.
Applicants for the RFP should submit their proposal to:
Becky Hinrichs
Red Wing HRA
428 West Fifth Street
Red Wing, MN 55068
Questions can be directed to Becky Hinrichs at 651-388-7571 or e-mail
Proposals should be submitted in hard copy via mail or fax (651-385-0551). No e-mail submissions please.
The deadline for proposals will be April 22, 2016.
The RWHRA reserves the right to reject all proposals.
Exibit OneUtility Allowance November 2014-2015
Eff &1 Bedroom / 2 Bedroom / 3 Bedroom / 4 & 5 Bedroom
Heating
Natural Gas / 27 / 35 / 36 / 37
Electric / 26 / 32 / 41 / 49
Cooking
Natural Gas / 4 / 6 / 7 / 7
Electric / 2 / 2 / 3 / 3
Water Heat
Natural Gas / 10 / 13 / 15 / 15
Electric / 7 / 8 / 12 / 14
Other Electric / 12 / 15 / 19 / 22
Water/Sewer / 53 / 61 / 72 / 77
Trash / 21 / 21 / 21 / 21
Recycling / 5 / 5 / 5 / 5
Stove / 4 / 4 / 4 / 4
Refrigerator / 5 / 5 / 5 / 5
FY2015 PAYMENT STANDARD/FMRs By Unit Bedrooms
Year / Zero-Bedroom / One-Bedroom / Two-Bedroom / Three-Bedroom / Four-Bedroom
FINAL FY2016 FMR / $521 / $584 / $782 / $1001 / $1198
2015 Payment Standard at 105% / $547 / $613 / $821 / $1,051 / $1,258
H:\COMMON\PBV\2016 PBV RFP April 22, 2016.doc