Bid Detail

25-056 - RFP: Development of Affordable Rental Housing for HOME-ARP Qualifying Populations

End date: Friday November 1, 2024 at 2 p.m.

Bid documents will be available on Wednesday, October 2, 2024.

Technical Assistance Session: Oct. 10, 2024, 3:00 pm on Zoom
https://us02web.zoom.us/j/83159531850?pwd=GrIWnZZza122GTfpZoHIbVOvt0Jati.1

INTRODUCTION
The City of Springfield is seeking proposals from housing developers to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of one or more of the HOME-ARP qualifying populations (QPs). The goal of this solicitation is to provide gap funding for acquisition of standard property, acquisition and rehabilitation of substandard property, rehabilitation of vacant substandard units a developer already owns, or construction of new units.

The City expects the HOME ARP funds to be leveraged with other resources that may include private equity, loans from lending institutions, and/or funds from Federal, State or local programs such as Low-Income Housing Tax Credits (LIHTCs), Affordable Housing Trust Fund, Housing Innovations Fund, MASH-ARPA, MA HOME, and/or Federal Home Loan Bank Affordable Housing Program. Other funding sources do not need to be committed at the time of proposal submission. The proposer must have site control.

Applications: The deadline for submitting completed proposals is November 1, 2024, by 2:00 pm. This funding process is competitive.

Note: The City is separately releasing a Request for Proposals (RFP) for its regular annual allocation of HOME funds. HOME ARP and HOME funds may be combined in a single project, but must fund and restrict separate distinct housing units. Developers seeking both HOME and HOME ARP funds must respond to both RFPs.

FUNDING OPPORTUNITY
FUNDS AVAILABLE
The City is making available up to $1,532,797 in federal HOME ARP funds,and anticipates making awards for a minimum one (1) and up to three (3) projects.

Awards made under this solicitation will be funded using HOME-ARP funds. Awards are subject to the requirements of the HOME Investment Partnership Program (Assistance Listing Number 14.239) as amended by the HUD Notice CPD-21-10: Requirements for the Use of Funds in the HOME-ARP Program and its Appendix: Waivers and Alternative Requirements for Implementation of the HOME-ARP Program.

QUALIFYING POPULATIONS
HOME-ARP units must be restricted to individuals or families in the following Qualifying Populations (QPs):
1. Homeless, as defined in 24 CFR 91.5 Homeless (1), (2), or (3)
2. At risk of homelessness, as defined in 24 CFR 91.5 At risk of homelessness
3. Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, or stalking (as defined by HUD in 24 CFR 5.2003) or human trafficking (as outlined in the Trafficking Victims Protection Act of 2000 as amended [22 USC 7102]); and
4. Other populations, where providing supportive services or assistance under section 212(a) of the National Affordable Housing Act 42 USC 12472(a) would prevent a family’s homelessness or serve those with the greatest risk of housing instability.

PRIORITY POPULATIONS
Among the QPs, the City has identified the following priority populations.
1. Homeless individuals and families as defined in 24 CFR 91.5 (1).
2. Any individual or family who is fleeing, or is attempting to flee, domestic violence (DV), dating violence, sexual assault, stalking, or human trafficking.
The City will give preference to projects that commit to serving the identified priority populations. However, the City will consider projects that serve all QPs.

ELIGIBLE ACTIVITIES AND COSTS
ELIGIBLE ACTIVITIES
HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of one or more of the HOME-ARP QPs.
Eligible HOME-ARP rental housing includes “housing” as defined at 24 CFR 92.2, including but not limited to manufactured housing, single room occupancy (SRO) units, and permanent supportive housing.

Emergency shelters, hotels, and motels (including those currently operating as non-congregate shelter), facilities such as nursing homes, residential treatment facilities, correctional facilities, halfway houses, and housing for students or dormitories do not constitute housing in the HOME-ARP program. However, HOME-ARP funds may be used to acquire and rehabilitate such structures into HOME-ARP rental housing.

ELIGIBLE COSTS
HOME-ARP funds may be used to pay for up to 100% of the following eligible costs associated with the acquisition, development, and operation of HOME-ARP rental units:
1. Development hard costs as defined in 24 CFR 92.206(a).
2. Acquisition including the costs of acquiring improved or unimproved real property.
3. Related soft costs as defined in 24 CFR 92.206(d).
4. Relocation costs as defined in 24 CFR 92.206(f), 24 CFR 92.353, and described in HUD Notice CPD-21-10.
5. Operating assistance including ongoing operating cost assistance or capitalizing an operating cost assistance reserve for HOME-ARP-assisted units restricted for occupancy by qualifying populations in a project where the City determines in its underwriting that the reserve is necessary to maintain the HOME-ARP units’ long-term operational feasibility. HOME-ARP funds cannot be used for both a capitalized operating cost assistance reserve and ongoing payments for operating cost assistance during the minimum compliance period. The allowable amount of the reserve shall not exceed the amount determined by the City to be necessary to provide operating cost assistance for HOME-ARP units restricted for occupancy by qualifying populations for the 15-year HOME-ARP minimum compliance period. If awarded, operating assistance must adhere to all requirements outlined in HUD Notice CPD 21-10.

PROGRAM REQUIREMENTS
MINIMUM COMPLIANCE PERIOD
HOME-ARP rental units must comply with the HOME-ARP rental requirements for a minimum of 15 years, irrespective of the amount of HOME-ARP funds invested in the project or the activity undertaken. Units assisted with HOME-ARP funds must comply with the requirements of HUD Notice CPD 21-10 throughout the minimum 15-year compliance period, including:
1. Units restricted for qualifying populations must be occupied by households that met the definition of a qualifying population at the time of initial occupancy. The household’s contribution toward rent during this period must be affordable in accordance with Section VI.B.14 of HUD Notice CPD-21-10. The rents for these units must comply with the rent limitations established in the aforementioned Notice, including the rent provisions specified in 24 CFR 92.252(i)(2) for households whose income increases above 80 percent of area median income and whose contribution to rent complies with the requirements in Section VI.B.15 of the Notice.

2. Units available for low-income households must be continuously occupied by households who are income eligible. The rents for these units must comply with the rent limitations established in HUD Notice CPD-21-10, including the rent provisions specified in 24 CFR 92.252(i)(2) for households whose income increases above 80 percent of area median income.

3. The units must comply with the ongoing property condition standards of 24 CFR 92.251(f) throughout the compliance period as demonstrated by an on-site inspection within 12 months of project completion and an on-site inspection at least once every three years thereafter as required by 24 CFR 92.504.

4. Each household that occupies a HOME-ARP unit has an executed lease that complies with the tenant protections required in Section VI.B.19 of HUD Notice CPD-21-10.

TENANT SELECTION
For HOME-ARP rental units that give a preference for homeless populations, the City will require the housing provider to use Coordinated Entry (CE) system of the Springfield-Hampden County Continuum of Care (CoC) plus other referral methods to fill units created by HOME-ARP. The CoC’s CE system prioritizes people with long histories of homelessness and high service needs. Because the CE system does not include all HOME-ARP qualifying populations, the City will allow housing providers to use other referral methods that accept all populations.

HOME-ARP rental units that will give preference to survivors of domestic violence or human trafficking must use the CoC’s DV CE system plus other referral methods to fill vacancies. Because the DV CE system does not include all HOME-ARP qualifying populations, the City will allow housing providers to use other referral methods that accept all populations.
HOME-ARP funded projects that do not have a preference may use a project waiting list specific to the project.
Each project awarded HOME-ARP funds will be required to have a Tenant Selection Plan that describes how the developer will work with the local CE system, and any other referring service agency as applicable, to identify appropriate qualified households. An agreement between the developer and the CoC/CE will also be required and will describe the referral method(s) in detail for each HOME-ARP project.

 

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.

Contact: Lauren Stabilo lstabilo@springfieldcityhall.com 413-787-6284

Request the complete specifications for this solicitation (25-056)


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