Bid Detail

25-019 - Notice of Funding Availability for Construction of Single-Family Home at 8 Ringgold Street

Introduction

The City of Springfield is making up to $275,000 in HOME funds available for developers to submit proposals to construct a new single-family home on the vacant lots at 8 Ringgold Street f/k/a ES Dwight Street parcels (04222-0282 & 04222-0284). The City is seeking proposals for construction of a single family, three-bedroom home that will be constructed in accordance with the plans included within this Request for Proposals (RFP). The City requires that the home will be sold to a first-time homebuyer that meets the HUD definition of a low/moderate income household earning at or below 80% of Area Median Income.

Eligibility Requirements

The City is offering the tax foreclosed property at 8 Ringgold Street f/k/a ES Dwight Street (04222-0282 & 04222-0284) for sale. The vacant lots are to be sold together and combined containing approximately 9,405 square feet with approximately 99.73 feet of frontage.

The City included approved plans for the construction of the dwelling. The Office of Planning and Economic Development has already completed site plan review of the plans and the Department of Public Works has approved the site and drainage plan and assigned a street number.

The City is offering a development incentive that shall not exceed $275,000 in Home Investment Partnership Program (HOME) funding. Funding will be disbursed in the form of an interest free, forgivable loan for all approved expenses. The loan will be paid out as reimbursement of expenditures. Developers will be required to submit detailed invoices that include back-up documentation including receipts, photographs showing completed work, and proof of all payments, to the City for review and approval before funding will be paid out. The City will review all payment requests and backup documentation and approve or deny payment within thirty (30) days. City review of invoices may involve progress inspections by a qualified Building Inspector and/or Housing Rehabilitation Specialist.
Proposals should include a detailed line-item budget that includes the home sale price which shall be affordable to an income-qualified household.

The City reserves the right to hold-back up to 5% of the development incentive until completion of the entire project. The loan will be forgiven upon issuance of a Certificate of Occupancy by the Springfield Building Department, a passed Federal Housing Quality Inspection by the Office of Housing and sale to an income-qualified homebuyer.

All new construction and expenditure of funds must be completed no later than December 1, 2025.

Proposers should demonstrate the ability to proceed within the allotted timelines, successful past development history, project feasibility and the ability to comply with HOME regulations. Proposers should make every effort possible to minimize the use of public funds and, while the City is not required to select proposals that request the least amount of funding, the City will take the overall financial impact of projects into consideration when evaluating proposals.
Full site plan review by the Office of Planning & Economic Development will be required and approval of design and/or construction plans is at the sole discretion of the City of Springfield. The City reserves the right to impose additional re-use/design restrictions as it deems necessary.

All development will be subject to all current zoning, historic and/or building restrictions. Changes to the use of the property may require a variance. The City makes no representations regarding success of variances and/or specials permit applications.

The following are considered eligible costs under this RFP:
1. Development hard costs (the actual cost of constructing housing).
2. Acquisition costs (costs of acquiring real property).
3. Related soft costs (other reasonable and necessary costs incurred by the owner and associated with the financing/development of new construction assisted with HOME funds, i.e., architectural, engineering, permits, financing, developer and legal fees, as well as working capital and closing costs).
Costs are subject to a cost reasonableness analysis, undertaken as part of the City’s underwriting of a project, and no costs will be permitted which exceed industry standards. If a proposal includes costs which exceed cost reasonable standards, the City may award a project contingent on negotiation of budgeted costs in order to bring them within standards.
A developer may receive a developer fee, in an amount not to exceed 12.5% of the total development cost, of a funded project.

Community Development Block Grant – Disaster Recovery/Home Investment Partnerships Program Funding

HOME funds should be spent in accordance with Home Investment Partnerships Program regulations in 24 CFR Part 92. HOME: HOME Investment Partnerships Program - HUD Exchange

Award of funding will be at the sole discretion of the City of Springfield. In order to be awarded funds, proposers must have demonstrated ability to comply with HOME requirements and must have a successful track record developing new construction, single family homes.

In order to provide prompt answers to questions, the Chief Procurement Officer requests that all proposers must submit written questions. Accordingly, questions must be received in writing only at the City of Springfield, Office of Procurement not later than October 16, 2024. Questions may be faxed or emailed. The Procurement Department fax number is (413) 787-6295 or email lstabilo@springfieldcityhall.com. The Procurement Department will compile written answers which will be emailed back to all Proposers who requested a copy of the RFP, no later than October 18, 2024.

The City of Springfield supports the goal of twenty percent minority and women participation in all contracts. No questions will be answered unless received by the Chief Procurement Officer at least 7 days prior to the expiration of the time set for submitting bids or proposals. The Chief Procurement Officer reserves the right to waive any informality in and to reject any or all bids if it is in the public interest to do so.

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