Troy Housing Authority Request for Proposals: Development Partners

THA RFP RAD Development Partner(s) of 27

Request for Proposals (RFP)

For

Developer Partner(s)

For

The Rental Assistance Demonstration

(RAD) Program

For The

Troy Housing Authority

Troy Housing AuthorityOne Eddy's Lane

Troy, New York 12180

Phone: (518) 273-3600Fax: (518) 274-6633


TABLE OF CONTENTSREQUEST FOR PROPOSALS Page Number

Solicitation Summary 3

PART I — GENERAL INFORMATION1.1 Executive Summary 51.2 Troy Housing Authority 61.3 Rules, Regulations, and Licensing Requirements 61.4 Contract Form and Issues 61.5 Contact with the Troy Housing Authority, Staff, Commissioners, Residents 61.6 Incurred Costs in Preparing Proposal 61.7 M/WBE Utilization and Resident Employment 7

PART II — PROJECT INFORMATION2.1 General Overview 7

Pre-Proposal Conference 72.2 General Scope of Services 92.3 Preferred Concepts 112.4 Development Strategy 112.5 Role of the Housing Authority 122.6 Role of Developer Partner(s) 13

PART III — PROCUREMENT PROCESS3.1 Directions for Submission 173.2 Qualification Criteria 173.3 Qualification / Technical Response Requirements 183.4 Certifications and Assurances 193.5 Organization of Proposals 203.6 Evaluation of Proposals 223.7 Evaluation Factors 223.8 Selection Process 243.9 Execution of Contract 25

ATTACHMENTS (all available at www.troyhousing.org):1. Instructions to Bidders for Contracts —HUD 53692. Instructions to Offerors ( HUD 5369-B)3. Profile of All Involved Entities4. Form HUD 5369A Representations, Certifications & Other Statements5. Form of Non-Collusive Affidavit6. M/WBE Utilization Commitment7. Certification of Equal Employment8. Form HUD 5370-C, General Conditions for Non-Construction Contracts9. Form HUD 5369-C Certifications and Representations of Offers10. THA Summary of Properties (RAD Tools with 20 Year Need Projections based on recent

Physical Condition Assessments are also available at www.troyhousing.org)


Solicitation Summary

The Troy Housing Authority (THA or Housing Authority) is seeking proposals from qualifiedDeveloper Partners to participate in our Rental Assistance Demonstration (“RAD”) Program and theredevelop other property we own. The THA has elected to participate in the RAD DemonstrationProgram and has identified all sites converting “RAD Sites”). The Housing Authority is consideringa combination of renovation and new construction using bonds, tax-credits and FHA financing. As aresult of the most recent changes in the RAD program, THA anticipates that it will eventually moveits entire public housing portfolio into RAD. The selected developer(s) will assist THA inevaluating and analyzing public housing conversion options. While THA prefers comprehensiveproposals that address all RAD sites, proposals addressing a portion of the sites will also beconsidered. THA reserves the right to select one respondent or make multiple awards based uponits needs and priorities. THA also reserves the right to schedule, stage and stagger the RADconversions in a manner that best meets the goals, needs and priorities of the Housing Authority.

We are seeking a developer who can provide financial resources to assist with the development ofthese projects. THA prefers to undergo a ‘comprehensive portfolio” RAD conversion, convertingpublic Housing to Section 8 project based vouchers. The Developer Partner will assist THA throughthis process and advise THA staff on financing strategies, RAD rules and regulations, and theapplication process. It is important to the THA that the conversion of 9% deals will result incommunities of mixed income to include market rate, affordable and tax credit properties. Tocreate the desired results will require comprehensive planning and leveraging resources andcoordination of planning efforts for the selected sites. Through this process, THA desires todiversify income mix of the housing units produced.

Respondents must include corresponding resumes, and evidence of recent successful experiencein financing, developing, rehabilitating, constructing, owning and/or operating similar properties.Respondents must demonstrate they have experience with at least three HUD mixed-finance orproject based voucher transactions.

Following the submission of proposals on December 23, 2015 by 2:00PM THA will make adecision based on the requirements and evaluation criteria contained within the RFP. The tentativecontract award and official launch of the program will occur shorthly thereafter, pending TroyHousing Authority Board approval.

Details of the RFP (can be obtained on THA's Website under the link RFP - RAD DevelopmentPartner(s). Please direct all inquiries regarding this RFP to:

Thomas E. HulihanDirector of Planning and Program Development



Phone: (518) 273-3600 ext. 221Fax: (518) 274-6633

E-mail: [email protected]


The Troy Housing Authority will acknowledge proposals received on or before deadline. Proposalsreceived after this date and time will not be accepted

The Troy Housing Authority reserves the right to reject any or all proposals, to advertise for newproposals to accomplish this solicitation by any means determined to be in the best interest of theTroy Housing Authority.

Troy Housing Authority staff will evaluate proposals to determine the best proposal to satisfy theneeds of the Troy Housing Authority.

SCHEDULE OF EVENTS:

Issue Date of RFP November 20, 2015Pre-Proposal Meeting December 9, 2015 at 11:00AMDeadline for Submission of Questions December 11, 2015 at 4:00PMTHA Response to Questions Issued December 16, 2015 at 4:00PMDeadline for Submission of Proposals December 23, 2015 at 2:00PM EST


PART 1 - GENERAL INFORMATION

1.1 Executive Summary

The Troy Housing Authority (THA) is seeking a Developer Partner(s) to partner in the developmentof the RAD Sites, as well as the development of other potential sites.

THA provides affordable (low) income housing to people in the City of Troy, New York. THA iscommitted to providing quality, affordable housing in healthy neighborhoods through partnershipswith our residents and other groups, fostering neighborhood development and opportunities forthose we serve to achieve self-sufficiency. THA receives funding through the U.S. Department ofHousing and Urban Development Department (HUD) to administer the Section 8 and PublicHousing Programs, as well as other affordable housing initiatives.

THA employs approximately 85 individuals and contributes economically to the City of Troythrough our employment base, infusion of over $14 million annually into the local economydirected toward the purchase of goods and services, payroll, development of new housing, andthrough payments in lieu of taxes. The THA also provides community impact through servicesoffered to the residents and larger community to assist in the process of self sufficiency. Theseservices are made possible through strong collaborations with community partners. Servicesinclude: Homeownership; Elderly Services; Youth Programs; Resident Association Support; andSelf-sufficiency Programs. To assist in these endeavors, we solicit the support of communityagencies that also provide opportunities for job training, education, life skills and other supportiveservices to assist in the journey to self- improvement.

The THA envisions that the selected developer partner(s) will be responsible for working withthe THA and any related entities created (THA and its related entities, as used collectively herein,the "Housing Authority") in arranging the appropriate financing for all phases of development inconjunction with the development of the RAD Sites. The developer partner(s) will also beresponsible for securing tax credits as well as other financing. The Housing Authority may selectone or more than one developer partner(s) that will be responsible for partnering with theHousing Authority for the development of some or all of the RAD Sites and other potentialdevelopment sites. The Housing Authority, in its sole discretion, will determine the extent of therole the developer partner(s) will play in each component of the development, as it may differbased upon the conversion strategy for each site.

We are seeking a developer who can provide financial resources to assist with the development ofthese projects. THA prefers to undergo a ‘comprehensive portfolio” RAD conversion, convertingpublic Housing to Section 8 project based vouchers. The Developer Partner will assist THA throughthis process and advise THA staff on financing strategies, RAD rules and regulations, and theapplication process. It is important to the THA that the conversion of 9% deals will result incommunities of mixed income to include market rate, affordable and tax credit properties. Tocreate the desired results will require comprehensive planning and leveraging resources andcoordination of planning efforts for the selected sites. Through this process, THA desires todiversify income mix of the housing units produced.


1.2 Troy Housing Authority

Within our housing portfolio the Troy Housing Authority has 1,250 units of public housing, 791Tenant Based Section 8 Vouchers and once Low Income Housing Tax Credit Property with 135units (134 of which have Project Based Section 8 vouchers). Within the Public Housing Portfolio,one Development (Martin Luther King Apartments) is already undergoing RAD conversion.Another site, Taylor Apartments 1 & 2, is presently vacant but the Troy Housing Authority isinterested in redeveloping this site to possibly to include housing, commercial, offices and/or THAcentralized administrative offices. The current site of our centralized administrative offices, TheEddy Mansion, will then need to be repurposed through renovations. See attached Summary ofSites for Site Based Total Budget, Unit Configuration, RAD Contract Rents, Initial Reserve Depositand Annual Deposit to Reserves.

1.3 Rules, Regulations and Licensing Requirements

The Offeror shall comply with all laws, ordinances, and regulations applicable to the servicescontemplated herein, especially those applicable to conflict of interest. Offerors are presumed to befamiliar with all federal, state, and local laws, ordinances, codes, rules, and regulations that may inany way affect the services to be provided. The respondent(s) must not be debarred, suspended, orotherwise ineligible to contract with THA, and must not be included on the General ServicesAdministration’s “List of Parties Excluded from Federal Procurement and Non-ProcurementPrograms” or HUD’s Limited Denial of Participation List.

1.4 Contract Form and Issues

No contractual rights shall arise from the process of negotiation until such time as the Troy HousingAuthority and the selected Developer Partner or Partners have signed an agreement. Work under theagreement shall commence immediately upon execution of such agreement. Parties further concurthat the Troy Housing Authority must approve the agreement and both agree to workdiligently to implement changes as required. Questions about how to interpret this RFPmay arise, and, if so, respondents should submit questions by December 11, 2015 at 4:00PM inwriting via e-mail to thomas.hulihan@troyhouisng .org. THA shall respond to all questions no laterthan December 16, 2015 at 4:00PM in writing via e-mail or by FAX to the interested firms.

1.5 Contact with the Troy Housing Authority, Staff, Board of Commissioners, and Residents

During the solicitation process period and subsequent evaluation process, offerors shall not makeany contact regarding this REQUEST FOR PROPOSALS with the THA staff, Board ofCommissioners or residents other than those identified in the RFP.

1.6 Incurred Cost in Preparation of Proposals

The Developer Partner(s) shall be responsible for all costs in preparing a response tothis REQUEST FOR PROPOSALS. All material and documents submitted byprospective developer partner(s) shall become property of the THA and will not bereturned. The developer partner(s) selected for further interviews and negotiations shallbe responsible for all costs incurred during those processes.


1.7 MBE/WBE Utilization and Resident Employment Goals

The THA is committed to achieving diversity in the award of contracts and in the purchase of goodsand services throughout all aspects of the development initiatives. The THA provides minorities andwomen equal opportunity to participate in all aspects of THA contracting and purchasing programs,including but not limited to participation in procurement contracts for commodities and services aswell as for contracts relating to construction, repair work, and/or leasing activities.

THA also prohibits discrimination against any person or business in pursuit of these opportunitieson the basis of race, color, sex, religion, or national origin and to conduct its contracting andpurchasing programs so as to prevent such discrimination.

The THA in cooperation with other local, state, and federal agencies, and with the assistance ofminority groups and agencies, will actively seek and identify qualified minority and womenbusiness enterprises and offer them the opportunity to participate as providers of goods andservices.

Even though the THA has not established any specific goals for MBE/WBE utilization, it isexpected that Offerors will submit, as a part of their response to this RFP, their goals for thisparticular project.

PART II - PROJECT INFORMATION

2.1 General Overview

A. All communications regarding this RFP shall be in writing, preferably by email, and must bedirected to the following Point of Contact for this RFP.




Phone: (518) 273-3600 ext. 221Fax: (518) 274-6633

E-mail: [email protected]

B. Oral Communications: Any oral communications shall be considered unofficial and non-bindingwith regard to this RFP.

C. Pre-Proposal Conference: A Pre-Proposal conference will be held 11:00AM on December 9,2015 in the Griswold Heights Community Room (350 Griswold Heights, Troy, NY 12180). This isnot a mandatory conference.


D. Questions/Clarifications Submission Deadline: Any questions or requests for clarification shallbe directed to the Point of Contact via email on or before December 11, 2015 at 4:00 PM.

E. Delivery Requirement: Each Respondent shall assume the risk of the method of dispatching anycommunication or proposal to THA. THA assumes no responsibility for delays, delivery or systemfailures resulting from the dispatch.

F. Reservation of Rights: THA reserves the right to determine, at its sole discretion, the appropriateand adequate responses to written comments, questions, and requests for clarification.

G. Amendments: Only THA’s official responses and other official communications pursuant to thisRFP shall constitute an amendment to this RFP.

H. Only THA’s official, written responses and communications shall be considered binding withregard to this RFP. THA reserves the right to determine, at its sole discretion, the method ofconveying official responses and communications pursuant to this RFP (e.g., written, facsimile,electronic mail, posting on THA’s website or other electronic means).

I. Modification of Solicitation: THA reserves the right to increase, reduce, add, or delete any item,service or activity to this solicitation as deemed necessary where it is consistent with THA’s goals,policies or strategies to do so.

J. Modification of Contract: THA reserves the right to increase or delete any scheduled items,goods, services or activities, and/or increase or reduce the quantity of any scheduled item, goods,service or activity as deemed necessary, to award portions of this RFP, to waive minor informalitiesand technicalities, and to make awards consistent with THA’s policies, and the applicable lawsgoverning HUD or other federally regulated programs.

K. Contractor Status: Contractor will be an independent Contractor, and not an employee of THA.

L. Funding Limitations: THA shall not be bound to any contract if funding has been disallowed byHUD or any other funding source.

M. Government Restrictions: In the event any governmental restrictions may be imposed, whichwould necessitate alteration of the material, quality, workmanship or performance of the goods orservices offered, it shall be the responsibility of the successful Respondent(s) to immediately notifyTHA in writing specifying the regulation which requires an alteration. THA reserves the right toaccept any such alteration, including any reasonable price adjustments occasioned thereby, or tocancel the contract at no expense to THA.

N. Section 3: The successful Respondent(s) shall comply with all applicable provisions of Section 3of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701U, and theregulations issued pursuant thereto, as set forth in 24 C.F.R. Part 135, and all applicable rules,directives and orders issued by HUD. Section 3 requires that, to the greatest extent feasible,opportunities for training and employment generated by a Section 3 covered contract be given topublic housing residents and other low income persons residing in the metropolitan area, andsubcontracts in connection with such contracts be awarded to Section 3 covered business concerns.


O. Due Diligence: All procurement transactions shall be conducted only with responsibleContractors, that is, those Contractors who have the technical and financial competence to performand who have a satisfactory record of integrity and performance. Where warranted and beforeawarding a contract, THA shall review the proposed Contractor’s ability to perform the contractsuccessfully, considering factors such as the Contractor’s integrity, compliance with public policy,record of past performance (including vendor performance reports and contacting previous clientsof the Contractor), and financial and technical resources (an extensive financial review is normallyconducted on all non-bonded procurement transactions over $100,000 in total contract value).Contracts shall not be awarded to debarred, suspended, or ineligible Contractors. THA shall notcontract with firms and/or individuals listed on List of Parties Excluded from Federal Procurementand Nonprocurement Programs. If a prospective Contractor is found to be non-responsible, a writtendetermination of non-responsibility shall be prepared, and the prospective Contractor shall beadvised of the reasons for the determination.

2.2 General Scope of Services

The Housing Authority is seeking proposals from experienced professional developer partner(s) ofaffordable housing to plan, finance, and implement innovative development for the RAD Sites andother potential development sites. We are seeking a developer who can provide financial resourcesto assist with the development of these projects. THA prefers to undergo a “comprehensiveportfolio” RAD conversion, converting public Housing to Section 8 project based vouchers. TheDeveloper Partner will assist THA through this process and advise THA staff on financingstrategies, RAD rules and regulations, and the application process. It is important to the THA thatthe conversion of 9% deals will result in communities of mixed income to include market rate,affordable and tax credit properties. To create the desired results will require comprehensiveplanning and leveraging resources and coordination of planning efforts for the selected sites.Through this process, THA desires to diversify income mix of the housing units produced.

The Troy Housing Authority is soliciting responses to this Request for Proposals(“RFP”) from qualified firm(s) to provide:

Consulting and related technical advisory services to evaluate the feasibility andapplicability of implementing a Rental Assistance Demonstration Program (“RAD”) at oneor more of YHA communities and facilitating one or more RAD applications;

Technical guidance on the transition of any community or communities to the RADProgram; and provide other technical assistance as THA seeks to reposition its publichousing units and other assets under RAD or other U.S. Department of Housing and UrbanDevelopment (“HUD”) programs.

The successful firm(s) must possess or have available consulting and technical expertise in thefollowing HUD Programs, HUD Regulations and related areas: Rental Assistance Demonstration(“RAD”), Low Income Public Housing Program, Housing Choice Voucher Program, ChoiceNeighborhoods Grants, Tax Credits, and related conversion/repositioning of affordable housingand/or public housing units/communities. The firm(s) must also excel in preparing/processing RADapplications and conversions, low income housing tax credit applications and providing technicalguidance to housing authorities regarding RAD conversion and other development/repositioninginitiatives. This solicitation is subject to the project budget and fiscal provisions under which THA


operates and award of a contract, subject to funding availability and THA determination, in its soleand absolute discretion, of its needs.

The THA expects the selected developer(s) to be a partner for the Rental Assistance Demonstrationconversion of public housing properties. The THA has additional properties (such as the EddyMansion) that are not a part of the RAD conversion effort, which THA envisions will be re-developed as well.

Through this solicitation, the THA may select one or more developer partner(s) to serve asdeveloper/partner or in another capacity for the conversion of these properties. The selecteddeveloper partner(s) will be required to propose RAD conversion strategies for each property theyare proposing to redevelop. In the case of a 9% tax credit application, the selected Developer will beresponsible for developing comprehensive development strategies to address the integration of RADconversion sites into the broader community. The strategies shall provide supporting documentationand information in sufficient detail to justify both the RAD financing strategy as well as ensuringthat the new development reflects a diversified population in regards to income.

THA anticipates that the following Public Housing Sites will be converted from Public Housing toSection 8 Project Based Units with the Rental Assistance Demonstration (RAD) Program possiblywith 9% Low Income Housing Tax Credits or other funding sources:

- Griswold Heights – 390 Units (All Family Garden Style Units on expansive grounds)- Corliss Park – 184 Units (All Family Garden Style) Units with adjacent land nearby)- Taylor 3 & 4 – 123 Units (All Family Units in two mid rise buildings in Downtown Troy)- Phelan-Sweeney – 112 Units (All Family Garden Style Units on two sites)- Fallon Apts. – 40 Units (All Family Garden Style Units with large community center)- Kane-Conway-Grand – 141 Units (Kane & Conway are senior mid rises; Grand Family Units are

in renovated historic brownstones in downtown Troy)- Taylor 1 & 2 – 139 Units (Two mid rise buildings presently vacant; these were Family Units but

THA envisions partial demolition and development of housing – mostlikely senior, commercial, offices, and or THA administrative officesat this location)

THA also envisions re-development and repurposing of the following site:

- The Eddy Mansion – located at 1 Eddy’s Lane (this expansive building is presently used as THAadministrative offices; THA envisions reuse possible as a shelter orservice delivery site)

Please note that the Troy Housing Authority reserves the right to modify the above list by adding orremoving sites.

The THA also expects for the developer partner(s) to assist in the formulation of a viable relocationplan, consistent with Uniform Relocation Act guidelines, for public housing residents, ifappropriate. Secondly, the developer partner(s) shall develop a financing plan and package specificto financing sources for the development projects. Third, the developer partner(s) shall beresponsible for assisting the Housing Authority in the implementation and development of eachdevelopment site.


2.3 Preferred Concept(s)

The Troy Housing Authority desires to manage the Low Income Housing Tax Credit Units.However, in recognition of the investor’s contribution and risk, there may be an initial period inwhich the investor or its designee may prefer to co-manage the properties. At a mutually agreedupon and appropriate time, the Troy Housing Authority or its designated affiliate does desire tomanage solely the Tax Credit units.

2.4 Development Strategy

In undertaking this initiative, as well as the other potential development sites, the HousingAuthority's fundamental goal remains that of providing incentives for private investment in thesurrounding area and a mix of market, affordable and some subsidized housing. However, theHousing Authority is seeking a developer partner(s) that can provide creative and innovative waysof financing and developing our development properties in carrying out the mission of providingaffordable housing within a mixed income environment.

The Development Strategy must to address the following:

A. Integrating Section 8 and low-income housing tax credit rental units with the surroundingneighborhoods.

B. Encouraging the development of mixed use and facilities that support the new residentialcommunities.

C. Integrating new market-rate rental units within the existing low/moderate income areasthrough implementation of mixed income development strategies.

D. Reflecting the architectural nature of the larger community, through new buildingdesigns.

E. Building high quality housing that will be attractive, energy-efficient, and will have long-term viability without extraordinary capital improvement resources.

F. Identifying new forms of ownership, management, financing, resident selection, andservice delivery that will assist the Troy Housing Authority in carrying out its mission ofproviding high quality living environments for our tenants.

G. Leveraging funds to the maximum extent feasible by aggressively pursuing both thepublic (state, local, and federal) and private (foundations, conventional, equity, and debt,etc.) sources of funding.

H. Ownership Structure:

The Developer Partner(s) and the Housing Authority will develop an ownership structurethat complies with all Federal regulatory requirements. The structure will identify and definethe role of each entity involved. It is the intent of the Housing Authority to negotiate adevelopment agreement(s) with its developer partner or partners. The Housing Authority


reserves the right, in its sole discretion, to serve — through a related Housing Authority-controlled entity — to serve as co-general partner or owner entity an interest of the generalpartner of each ownership entity; provided, however, all ownership structures must beapproved by HUD. The Housing Authority will favorably review creative proposals thatmitigate risk to the Housing Authority and provide significant fees to the Housing Authorityfor each phase of the development.

The development of these sites may require a more complex ownership structure. Wherepossible, THA desires to retain ownership of land and place the land into the developmentthrough a long-term ground lease.

2.5 Role of the Troy Housing Authority

The Housing Authority will play the following roles in the planned conversion of theRAD Sites, and the development of its other sites:

A. Housing Authority Role as Co-Developer and Receipt of Fees.

The Housing Authority expects to play a significant role in each phase of the conversion ordevelopment and may in its sole discretion, elect to serve through a related entity as a co-general partner of each phase owner entity. The Housing Authority expects to receive anappropriate portion of the developer fee and cash flow for each phase and will viewproposals that structure and budget such fees most favorably for the Housing Authority. TheHousing Authority will favorably review creative proposals that structure ground leasepayments or other fees in addition to the Housing Authority's receipt of a portion of thedeveloper fee and cash flow. However, the Housing Authority shall not provide guarantiesor indemnify any third parties and the developer partner(s) will be responsible for all suchguaranties and indemnifications.

B. Deal Structure for RAD Sites and Other Sites

The Developer Partner(s) will be responsible for providing comprehensive developmentservices with respect to the physical improvements on the RAD Sites and other sites. TheHousing Authority will utilize a land lease agreement with each owner entity. As landownerand asset manager, the Housing Authority or its development entity will be concerned aboutpreserving long term asset value through attentive property management, and ensuringcompliance with applicable HUD and Housing Authority management requirements. Theexact terms and relationships for property management are to be negotiated with thedevelopment entity. However, it will be the intent of the Housing Authority to negotiate aspecific management initiative that will transition the responsibility of property managementto the Housing Authority over an agreed upon period of time and upon mutually agreeablebenchmarks that will be negotiated prior to each phase.

C. Relocation/Demolition

The Housing Authority will work with its selected Developer Partner(s) to ensure allrelocation and demolition activities are consistent with all federal, state and localrequirements. Additionally, the selected Developer Partner(s) will work with the Housing


Authority to monitor and track all relocation, demolition and development activities toensure all activities are implemented according to an agreed upon timeframe.

D. Cooperate with Developer to Obtain Low Income Housing Tax Credits

The Housing Authority will partner with the Developer Partner or Partners to obtain LowIncome Housing Tax Credits ("LIHTC"). The Developer Partner(s) will be responsible forpreparing the LIHTC application for review, comment and approval of the Troy HousingAuthority. After receipt of the Housing Authority's approval of an LIHTC application, theDeveloper Partner(s) shall be responsible for making timely application for tax credits todevelop each tax credit phase of the conversion or development. The Developer Partner(s)may suggest an alternative financing structure when appropriate.

E. The Housing Authority may, in its sole discretion, use its bonding authority to securebonds for assisting in financing all identified conversion or development projects.

F. Provide Housing Assistance Payments

Subject to funding availability and HUD requirements, the Housing Authority will makehousing assistance payments toward the cost of operating the rental units in accordance withthe RAD Program. The terms of the housing assistance payments will be contained in aHousing Assistance Payment ("HAP") contract that will be negotiated between TroyHousing Authority and the owner entities for each phase of the conversion or development.

G. Asset Manager

The Housing Authority will continue to have asset management responsibilities related tothe units under the HAP contract. As part of its asset management responsibilities, TheHousing Authority will monitor and enforce the terms of its Ground Lease and the HAPcontract with the owner entities for each phase of the conversion or development.

H. Option/Right of First Refusal

The Housing Authority shall have a right of first refusal to acquire the property at theminimum price permitted under the Internal Revenue Code (i.e. existing debt plus exittaxes).

I. Legal Counsel

The Troy Housing Authority will retain Legal Counsel for the revitalization efforts for itssole use as a project expense. The developer partner(s) has the responsibility of providing itsown legal services.


2.6 Role of Developer Partner(s)

The Developer Partner(s) shall be a partner in the effort to revitalize the conversion or developmentsites and surrounding neighborhoods. For a mixed-income community the Developer Partner(s)shall be required to work closely with the Housing Authority and the surrounding communitythroughout the revitalization effort. The Developer Partner(s) will be responsible for:

A. Preparing and submitting complete RAD and tax credit application(s) and otherdocuments to HUD and other appropriate agencies in a timely manner. However, some RADdocuments may have a previously submitted RAD application. Assist with financing plansto demolish and rebuild or refurbish housing units on existing or new sites.

B. Assist in securing financing in anticipation of one or more RAD applications ordevelopment projects Also, reviewing and providing guidance of all documents pertaining totemporary and permanent financing, loans, collateralization and other financial strategiesnecessary for RAD or otherwise relating to the conversion/repositioning of THA’s inventory

C. Complying with all representations, terms, conditions, and requirements set forth in theHousing Authority's RAD application, except for changes approved by the HousingAuthority and HUD (if and as applicable);

D. Complying with all requirements related to the HUD Rental Assistance Demonstrationprogram, including but not limited to those set forth in HUD PIH 2012-32 (RAD's FinalImplementation Notice) and any subsequent follow up notices from HUD;

E. Work closely with THA’s legal counsel regarding matters of financing structuring as itrelates to IRS Code Section 42, IRS Technical Advice Memoranda (TAMs), other relevantCode Section and other applicable federal, state and local regulations;

F. The selected Developer Partner(s) will be responsible for market analysis and appraisalsto develop and obtain financing for any development phase of the conversion / development.

G. Preparing applications to obtain 9% and 4% tax credits and bond application allocationsfrom the New York State Housing and Community Renewal (NYSHCR) or any otheralternate Finance and Development Authority in accordance with the qualified allocationplan. The Developer will also be responsible for soliciting, following approval of thesolicitation process by THA, at least three tax credit syndicators to bid on the tax creditsreceived for each LIHTC phase of the conversion or development. The Developer shall beresponsible to incorporate all agreed to terms into any solicitation of tax credit syndicatorsand any subsequent Letters of Interest. The Developer shall provide the Housing Authoritywith the opportunity to review all syndication proposals and the Housing Authority shallhave the right to approve the selection of each syndicator. Additionally, throughout thedevelopment process the Developer shall share all syndicator financial projections promptlyupon request by the Housing Authority.

H. Developing design and construction documents; obtaining Housing Authority approval,obtaining NYSDHCR approval on low-income tax credit units, and obtaining City of Troyapprovals and permits. If the Housing Authority elects, in its sole discretion, to pursue bond


financing, working with the Troy Housing Authority on submission of application andapproval for bonds.

I. Determining realistic public and private financing sources, use, schedule, and availability,assembling financing packages, preparing necessary financing applications, and providingall necessary financial guarantees and assurances.

J. Coordinating all development activities, including reporting and budget requirements,with the Housing Authority.

K. Performing other miscellaneous services and other RAD consulting services as may berequested by THA, from time to time regarding the submitted RAD application(s).

L. Developing and implementing a Section 3 Employment Program.

M. The Housing Authority will rely upon the Developer to finance predevelopmentactivities but may in its sole discretion, provide other financial sources. The HousingAuthority will look more favorably upon proposals where the Developer is responsible forall predevelopment costs.

N. Developing an approved conversion or Development strategy for development sites. Alldevelopment plans shall be approved by the Housing Authority. All development strategiesshall include, but are not limited to:

1. Preparation of sketches and renderings, which will reflect the architecturalcharacter of any proposed new construction, in addition to any approvedmodifications to the Conversion or Development plans that has already beenapproved.

O. Identification of various options concerning the following:

1. Feasible financial resources needed and available to implement the plan (i.e.private market lenders, limited partnerships, bond financing, tax credits, AffordableHousing Act initiatives, federal insurance programs, and equity.

2. The plan must address financing in satisfaction of due diligence and theunderwriting requirements of conventional lenders, the U. S. Department of Housingand Urban Development (HUD), and the Troy Housing Authority.

P. The Troy Housing Authority envisions that there shall be multiple sources of funding, which mayinclude the following:

1. NYSHCR Low-Income Housing Tax Credits2. Bond Financing3. Local Contributions4. FHA Financing5. HOME Funds6. Other Funding Sources


2.6.1 Sources of additional funding may be sought through economic development grants, etc.

The Developer Partner(s) shall be responsible for working with the City and other key organizationsto stimulate and support neighborhood-wide revitalization and commercial economic development.

A. Recommendation of management and marketing options that will insure the successfulimplementation of the Development Plan.

B. Procure construction of each phase of the revitalization work in accordance with HUDand Troy Housing Authority requirements. Oversee construction and ensure completion in atimely and effective manner. Ensure all required occupancy permits and other necessaryapprovals are obtained after construction completion to permit occupancy and operation ofthe development.

C. Implement management policies and other lease-up activities. Provide day-to-daymanagement and maintenance.

D. Coordinate, conduct, and document all meetings with any and all public housingresidents and resident associations in the surrounding neighborhood, city agencies, officials,HUD, Housing Authority staff; businesses in the area, and any other.

E. Identify and secure appropriate detailed financial information to support the revitalizationand any supportive service initiatives identified.

F. The selected developer partner(s) shall provide written monthly status reports as well aswritten and verbal presentations to the Housing Authority. Compliance with the MBE/WBEhiring/training of low-income residents (Section 3) and resident owned businesses must be apart of the monthly status report.

G. Provide development, operating, and tax credit recapture guarantees, as required byLenders/Equity Providers. Provide a performance and completion guaranty to the HousingAuthority.

H. Secure an option/right of first refusal for the Housing Authority with each LIHTCinvestor and minimize investor exit taxes due when the Housing Authority exercises itsoption or right of first refusal.


PART III - PROCUREMENT PROCESS

3.1 Directions for Submission

Five (5) bound and secured copies of proposals, one of which shall be clearly identified withoriginal signatures and in printed form and a labeled electronic format on a flash drive must besubmitted to the Troy Housing Authority by December 23, 2015 no later than 2:00 P.M.(EST) without exception, at the following address, to be deemed responsive and eligible forconsideration. All proposals received will be publicly opened and recorded immediately. Noimmediate decisions are rendered.

To assure that your-proposal arrives at the proper place, on time, and to prevent opening byunauthorized individuals, your proposal must be identified on the envelope or package asfollows:

ATTN: RFP RAD Developer PartnerDue: December 23, 2015 by 2:00PM




3.2 Qualification Criteria

Development Team

The Developer Partner(s) for this project must be capable of handling the development and ongoingoversight of the revitalization projects. The selection committee will evaluate the following:

A. Previous experience developing and managing affordable housing, including both publichousing and low-income tax credit housing.

B. Previous experience providing development and financial advisory services to PublicHousing Authorities.

C. Experience in successful project management and completion of mixed-finance andmixed-use development under HUD programs.

D. Previous experience and success in securing financing for mixed finance affordablehousing particularly Low Income Housing Tax Credits and Tax Exempt Bond Financing.

E. Financial capability to complete the project.


The Developer Partner(s) should be experienced in financing, managing, and developingmultifamily rental housing, and may include design, construction, legal, and financing professionalsas well as licensed general contractor with demonstrated financial capability.

3.3 Qualification Response and Technical Response Requirements

The Developer Partner(s) shall be required to submit the following information in detailed narrativeand/or detailed diagrammatic presentation:

A. Team Participants and their Specific Roles

All entities that compromise the team shall be identified, indicating their specialization(s)and specific contribution to the team. Respondents are encouraged to include specialists forall components of the program including design, construction, legal, and financingprofessionals, as well as expertise in integrating community and supportive services. TheProject Manager shall be clearly identified. Ultimately, the identified Project Manager shallbe held responsible for the performance of all members of the Development team. If theteam members are unrelated parties, the managing party (Project Manager) should enter intoindividual agreements with each member to assure performance. Any M/WBE teammembers shall be so identified.

B. Personnel and Table of Organization

Respondents shall submit an organizational chart showing all of the individuals that will beassigned to this development effort. This chart should reflect the hierarchy and lines ofcommunication. Also, resumes of the key individuals shall be included with a detaileddescription of the responsibilities that they will be required to perform. Additionally, withrespect to the Project Manager and lead individuals in each discipline, describe the degree towhich such individuals and firms can dedicate their professional time to this initiative.

C. Financial Statements

Respondents shall provide a current financial statement of the development entity, preparedby a Certified Public Accountant along with the most recent audit of such firm. Thestatement shall show assets, liabilities, and net worth of the entity. These statements shalldemonstrate the financial capacity of the Developer Partner(s), or entity what would mostlikely be responsible for executing all applicable guarantees.

Include a statement disclosing and describing any instance of non-compliance or default inany public housing transaction, including mixed finance or HOPE IV transaction, by theproposer, its affiliates or assigns.

D. Financing Plan

The respondents shall include a discussion of proposed financing plans for any and all sitesfor which you wish to be a development partner . This narrative shall include thedevelopment team's reaction to the financing options included in the REQUEST FORPROPOSALS and include any suggested alternate or additional source of funding. The


respondent shall also indicate if the development entity plans to make any cash investmentin the project and shall address its perspective on the priorities of the THA as set forth in thisRFP.

E. References

Three to five (3 - 5) references shall be submitted. References that are relevant to the scopeof work as anticipated in this REQUEST FOR PROPOSALS are desirable.

F. Development Capacity

Respondents shall indicate their ability to devote significant team resources to the project.Respondents shall also describe the general approach they will take towards each site theywish to partner on redeveloping. This shall consist of a description of the extent ofrenovations anticipated, the length of time it will take to complete the renovations and anestimation of the costs to renovate.

G. MWBE/Section 3 Goals

The response shall include a discussion of the approach and methods the development teamwould utilize to encourage MWBE and Section 3 participation in the project. Demonstratedperformance by team members successfully implementing programs to maximize minorityutilization in other projects will be viewed favorably by the selection committee.

3.4 Certifications and Assurances

The REQUEST FOR PROPOSALS as a general requirement specifies that all work be performed inaccordance with professional standards, HUD regulations, requirements and criteria, and state andlocal codes, regulations, ordinances and statues. It is the Troy Housing Authority's full expectationand it will be a contractual requirement that the successful respondent fully and routinely meet theserequirements.

Provide all required certifications on forms included as Attachments of the REQUEST FORPROPOSALS.

Solicitation Cover Sheet

Instructions to Bidders for Contracts ( HUD 5369)

Instructions to offers ( HUD 5369-B)

Cover Letter of Interest

Profile of All Involved Entities

Form HUD — 5369A Representations ,Certifications & Other Statements


Form HUD — 5369C Certifications and Representations of Offerors

Certificate stating your firm has never been Debarred or Suspended from Doing Businessin 1ith HUD funded programs.

Form of Non-Collusive Affidavit

Economic Opportunity Policy

MWBE Utilization Plan

General Conditions for Non-Construction Contracts ( HUD 5370-C)

Certification of Equal Employment Opportunity Agreement

3.5 Organization of Proposals

The instructions below provide further guidance on the preparation of proposals. Their purpose is toestablish the requirements; order and format of proposals so that proposals are Complete, contain allessential information and can be evaluated easily.

Assemble your submission in the order described below:

A. Letter of Interest

Each proposal shall be accompanied by a letter of interest listing the development teammembers and identifying the primary contact person. The letter should summarize brieflythe team's qualifications and past experience relevant to the proposed project.

B. Team Experience and Qualifications

1. Organizational Chart

Respondents shall submit an organizational chart showing all of the individuals/firms thatwill be assigned to this development effort. This chart should reflect the hierarchy and linesof communication. Provide a narrative on the composition of the development team,including developer partner(s), architect, engineer, developer attorney, general contractor,financial advisor (if applicable), property Management Company, and the anticipatedrelationships of these team members. Also, in accordance with the stated preferences of theHousing Authority in this RFP, please clearly identify how you propose to involve theHousing Authority as a co-developer and in the ownership structure.

2. Profile of the Developer Partner(s)

Provide an overview of Developer Partner(s)' experience in developing housing similar towhat is proposed. Identify all market-rate, public housing, Section 8 Project Based andLIHTC efforts the development entity has been involved in. Provide profiles on the key


staff, including the Project Manager that is anticipated to be involved in the Revitalizationeffort. This information shall specify key roles and previous experience with large housingdevelopment and Revitalization efforts.

Attach resumes of all key personnel of the development entity. Attach financial statementsfrom developer partner(s) and the individual designated as Project Manager. Attachreferences as described in Section 3. 4.

3. Profile of Development Team Members

For each team member not directly employed by the development entity, provide anoverview of their experiences in contributing to affordable housing conversion ordevelopment in a role as anticipated in your response to this solicitation. Include the resumesof all such team members.

4. List and Summarize Recent Relevant Development Experience

5. Example of at least two (2) Recent Relevant Financing Models for Development Deals

6. Application Development Schedules –

This schedule should denote the process in which the Respondent plans to aggressively meetthe time frames in regards to the preparation and submission of tax credit application orapplications or other sources of funding. In addition, THA desires for the Respondent toprovide a proposed schedule or schedules which also includes the other RAD 9% Propertiesas well as other possible development projects not using 9% Tax Credits as well as aschedule for the re-use of the Eddy Mansion.

Respondents shall also describe the general approach they will take towards each site theywish to partner on redeveloping. This shall consist of a description of the extent ofrenovations anticipated, the length of time it will take to complete the renovations and anestimation of the costs to renovate.

7. MWBE/Section 3 Goals

8. Contract Requirements and Certifications

Provide all required certifications on forms included as attachments of the REQUEST FORQUALIFICATIONS as described in Section 3.5.

9. Other Attachments

Respondents may attach, at the end of their submission, other promotional materials or workproducts that would demonstrate their experience and qualifications.


3.6 Evaluation of Proposals

All proposals shall be evaluated based on the evaluation criteria outlined below. A SelectionCommittee shall be established and will be responsible for overseeing the selection processand making a recommendation for approval. The Selection Committee shall determine acompetitive range based on the established criteria and point system as detailed below. Ifthere are a number of respondents that falls within the competitive range THA, ay it’s solediscretion, may schedule interviews with the Selection Committee.

The Selection Committee may consider unacceptable any proposal for which criticalinformation is lacking, or the submission represents a major deviation from the requirementsof this RFP. Minor omissions may be, at the sole option and discretion of the Troy HousingAuthority, be corrected subsequent to the submission due date.

3.7 Evaluation Factors

The following evaluation factors shall be used in determining the competitive range, with a totalpossible score of 100 points.


EVALUATION CRITERIA AND MAXIMUM POINTS

Experience and Qualifications (Maximum – 25 Points): Experience in development, finance, andproperty management of rental housing including public housing, Section 8, RAD, tax credit,market-rate, and mixed-income. Offerors should submit a list of references for whom the firmprovided similar services. Capability and experience of the members of the Developer Partner'steam; and, determination of availability of all required skills necessary for the development process.Experience with community-based development, including Collaboration with communityorganizations. Evidence of quality performance on-time and on-budget.Note: Each person that the proposer intends to bill as an Attorney or an Associate Attorney must bea member in good standing of the State Bar where he/she primarily practices or is licensed, andRespondent must list the identification number issued to that person by the State Bar.

Financial Capacity (Maximum – 25 Points): Overall financial strength of the DeveloperPartner(s). Demonstrated record of financing affordable housing projects through a variety offunding sources and knowledge and experience working with the funding sources identified in thisRFP. Successful development of projects utilizing low-income housing tax credits. Contribution ofDeveloper Partner and demonstrated ability to bring financial resources to leverage dollars and tocreate a desired mix of housing.

Development (Maximum – 25 Points): Completeness and responsiveness to all requirements andpriorities of THA as described in this RFP, including but not limited to participation of THA in thedevelopment structure. (THA reserves the right to declare incomplete proposals as non-responsive).Demonstrated conceptual understanding of RAD as a new HUD program and similar HUDprograms such as HUD mixed-finance, project based vouchers, FHA financing, etc.Additional Factors that will be considered:

Clarity and coherence of presentation.Concept and proposed structuring.Enhancement of neighborhood appearance.Plan for long-term property management and asset management. Involvement ofresidents in planning, operations, and benefits.

Price/Fee (Maximum – 15 Points): Offeror must submit all of its proposed fees as an attachment.Offeror should describe how it will provide services in a way that will allow THA to (i) anticipatethe estimated cost of the services; (ii) control the costs of the services. THA reserves the right tonegotiate fees and cost with the Offeror(s) it tentatively selects and to reject that Offeror shouldthose negotiations be unsuccessful. THA must judge the Offeror’s proposed fees to be reasonable.Note: The person signing the Fee Proposal must be a person authorized to bind the Respondentcontractually. Unsigned offers will be rejected. Unsigned offers cannot be signed after the proposalhas been opened. No signatures shall be in pencil.

MWBE, Local Participation and Section 3 (Maximum – 10 Points): Provision for MWBE andSection 3 local participation, equal Opportunity, affirmative action, and past experience inachieving such participation.

MAXIMUM TOTAL 100 PTS


3.8 Selection Process

THA will use the following process to evaluate proposals. In its sole discretion, THA may changeboth this process and the schedule.

A. Review for Compliance with Submission Requirements

Proposals that arrive at THA by the due date and time will be opened by THA Point ofContact or his/her designee. THA will initially review all proposals to determine if theycomply with the submission requirements specified in this RFP. THA may reject anyproposal without further review if THA in its sole judgment determines that the proposaldoes not comply with these requirements. THA may also reject without further review anyproposal that in THA’s sole judgment deviates significantly from the requirements of thisRFP. THA may, in its sole option and discretion, allow a respondent to later correct minoromissions, informalities or irregularities.

B. Ranking

An Evaluation Committee that THA will convene (the “Committee”) will review allresponsive proposals according to the criteria set forth in this RFP for the selection ofrespondents that are the most advantageous to THA based on the evaluation criteria. TheCommittee will rank the respondents according to said criteria. THA may also engage in sitevisits, in its sole discretion, as may be deemed appropriate to determine respondent’sreasonable chance of being selected for award. The Committee shall designate therespondents, based upon this evaluation, into one of three (3) groups: (i) acceptable; (ii)potentially acceptable; (iii) unacceptable. THA will not give further consideration tounacceptable proposals.

C. With or Without Discussions and Oral Interviews

The Committee or someone it designates for the purpose may conduct separate discussions,which may involve an in-person interview, with each respondent designated acceptable orpotentially acceptable. The purpose of these discussions would be to ensure that eachrespondent understand the work to be performed. THA reserves the right to proceed in theevaluations without discussions.

D. Written Modification of Proposal

Each respondent may submit a written modification of their proposal within five (5) daysafter any such discussion, if such discussion does take place. The modification can onlyaddress the point or points of the discussion.

E. Best and Final Offers

THA may, at it’s sole discretion, invite the respondents deemed acceptable or potentiallyacceptable to submit a “best and final offer” by a specified date and time. If respondents donot submit a best and final offer, or a notice of withdrawal, the previous offer shall beconstructed as their best and final offer.


F. Final Ranking

The Committee shall make a final ranking of the respondents using the criteria in this RFP.It shall then make a recommendation to THA’s Executive Secretary who will make therecommendation to the THA Board.

G. Negotiation of Contract

For each site or for the entire portfolio, whichever THA determines to be the best course ofaction, THA will attempt to negotiate a contract with the chosen respondent(s), including anagreement on a fair and reasonable price. If negotiations are not successful, THA willattempt negotiations with the next highest ranked respondent(s), and so on until it contractsfor a fair and reasonable price or until it terminates the process.

H. Proposal Evaluation Period

During the period when proposal evaluation is being conducted, all proposal details,analyses and scoring (preliminary or otherwise) are confidential. This measure simplymaintains the integrity of THA’s procurement system. No THA personnel in any office candiscuss information pertinent to any proposal during this period. Violation of theconfidentiality of proposals pending award seriously compromises THA in establishingcontractual agreements and may result in the disqualification of the respondent from thisprocurement action.

3.9 Execution of Contract

Subsequent to the award and within ten (10) days after the proscribed forms are presented forsignature, the successful respondent shall execute and deliver to THA a signed contract and allinsurance certificates, licenses, permits, etc., required in this solicitation and be ready to implementservices at the end of the ten (10) day period, or such longer period as THA may specify in writing.

A. Laws and Regulations

The Contractor(s) shall at all times observe and comply with laws, statues, ordinances,regulations and codes of the Federal, State, County and local government agencies, whichmay in any manner affect the performance of the Contractor(s).

B. Indemnification

Contractor(s) expressly agrees to indemnify and hold harmless the THA from all losses,costs, damages and/or expenses with respect to all demand claims, suits, and/or judgmentsfor personal injuries, including death, to any person (including but not limited to thirdparties, employees of THA, employees of Contractor or and sub-contractor and theirdependents or personal representatives) or damages to property to any person arising byreason of any act or omission, negligent or otherwise, either by Contractor or by sub-contractors or the employees or agents of either of them. Contractor further agrees to defendTHA to reimburse THA for any reasonable cost and expense, including attorney’s fees,which THA may incur or be put for the defense from any such claim.


C. Right to Audit

Contractor shall make available for audits its books, records, ledgers, and other pertinentdocumentation showing the basis for the costs claimed under the contract. These books andrecords shall be made available to the THA internal and external auditors.

D. Retention of Records

The contractor shall maintain the records pertaining to billings for a period of three (3) yearsafter the contract is terminated and audited by THA.

E. Limitations

This RFP is issued only to solicit proposals as identified herein. The Troy HousingAuthority and its Board of Directors are in no way committed hereby to accept or award anycontracts to any Contractor(s). The final decisions to award any contract to anyContractor(s) rest with the Troy Housing Authority Board.

F. Contract Administrator

The Contractor(s) is to provide a contact person during the period of performance of thecontract for prompt contract administration. The designated representative to be contactedduring the period of performance of this contract will be specified in the award contractand/or the Notice to Proceed.

G. Contract Enforcement

If a contractor fails to comply with any term of an award whether stated in a federal statuteor regulation, an assurance, or program plan and/or agreement, THA may take one or moreof the following actions;

1. Withhold Payments. Temporarily withhold cash payments pending correction ofthe deficiency by the contractor.

2. Disallow Activity. Disallow all or part of the cost of the activity or action not incompliance.

3. Suspend or Terminate Award. Wholly or partly suspend or terminate the currentaward for the program and/or services.

4. Withhold Further Awards. Withhold further or future awards for the program.

5. Other Actions. Take other legal or equitable remedies that may be legallyavailable.

6. Costs incurred by the contractor during a suspension or after a termination of anaward are not allowable unless approved in writing by THA.


H. Termination of Contract for Convenience

THA may terminate the contract agreement for convenience or for failure of the Contractorto fulfill contract obligations. THA shall terminate by delivering to the Contractor a Noticeof Termination. Upon receipt of such notice, the Contractor shall immediately discontinueall services affected and deliver to the THA all information, reports, paper and othermaterials accumulated or generated in performing this contract whether completed or inprocess. If the termination is for convenience of THA, THA shall be liable only for paymentfor accepted services rendered before the effective date of termination.

I. No Guaranteed Minimum

Under this contract THA reserves the right to make multiple awards and to pursue alternatecontract agreement to meet its needs for the Services and related activities how and when, atits sole judgment and discretion, deems is in the best interest of its operations or strategicvision. The THA offers no guarantee minimum quantities to be procured under thissolicitation or any resultant agreement or contract.

J. Reporting/Auditing Requirements

THA reserves the right to conduct a financial and operational review and/or audit of thebooks and records of Respondent(s) and/or any other provider of the goods and servicesunder this RFP. Such records shall include, but not be limited to Service and Audit Records,and Financial and Invoice Records.

K. Ownership of Data and Materials

All data, material and documentation either prepared for or by THA pursuant to this contractshall belong exclusively to the Troy Housing Authority

Troy Housing Authority Request for Proposals: Development Partners

Documents

Transcript of Troy Housing Authority Request for Proposals: Development Partners