20-034 - Development of Homeowership Housing in Memorial Square NeighborhoodEnd date: Wednesday September 25, 2019 at 2 p.m.
The City of Springfield Office of Housing announces the availability of funds under the federal Home Investment Partnerships (HOME) Program.
Project proposals are being solicited to construct homeownership units that will be affordable to households with incomes at or below 80% area median income.
The City of Springfield is seeking to allocate up to $400,000 in HOME funds for the design and new construction of affordable, single-family homes that are in character with the existing neighborhood.
The City is soliciting responses to this RFP in order to select a qualified developer(s) who can successfully complete the construction and sale of affordable home(s) to qualified, income-eligible homebuyers.
The City is seeking for-profit, or nonprofit, developer(s) who is/are experienced, financially creative, and capable of developing quality housing.
Applicants must be able to demonstrate their development experience and be able to work cooperatively with City staff to implement a successful housing project.
Applications must be received no later than 2 p.m., Wednesday, September 25, 2019 at the Office of Procurement, Springfield City Hall, 36 Court Street, 3rd floor, Room 307, Springfield, MA 01103. Applicants must submit an unbound original and five copies of the application.
PURPOSE: AFFORDABLE HOMEOWNERSHIP
The City of Springfield Office of Housing is announcing the availability of federal funds provided to the City of Springfield under the HOME program administered by the U.S. Department of Housing and Urban Development (HUD). The funds are available to qualified developers for the purpose of developing affordable homeownership housing in Springfield.
Up to $400,000 of HOME assistance is available.
AWARD OF FUNDS
All applications will be subject to preliminary screening by the Office of Housing for completeness and minimum requirements. A Selection Committee, appointed by the Director of Housing, will review those deemed complete. Selection(s) will be made based on the extent to which the proposal(s) meets the evaluation criteria. A site-specific environmental review must be completed by the City for any project funded with federal funds prior to the commitment of funds to the project.
Applicants will be notified of the award(s) approved. Following selection, the City will enter into one or more contracts for development. No funds may be dispersed prior to execution of the contract.
To be considered, proposals must be responsive (complete in all material respects) and meet all minimum requirements. The City intends to award a contract, or contracts, to the most advantageous proposal that the City determines will best assist the City to reach its goal of obtaining the highest quality services at the best value to the City. The successful proposal may, or may not be, the lowest price proposal.
The City shall award the proposal by written notice to the selected proposer. The City, in its sole discretion, may condition an award on successful negotiation of revisions to the proposer’s plan of service. However, proposers shall not specify items for negotiation in their proposals or otherwise condition their proposals on negotiation of requirements in the RFP, including requirements of the agreement.
Inclusion of any such condition in a proposal shall be cause for rejection of the proposal.
If no application meets the selection criteria, the City reserves the right to fund no applications in this round of funding, or to reopen the period for submission of proposals indefinitely. If all funds are not awarded, the City may also amend this RFP.
The City is making the funds available for development in the Memorial Square neighborhood.
The neighborhood that a parcel is located in can be confirmed using the City’s Geographic Information System (GIS), located at https://maps.springfield-ma.gov/gis/. Once you enter an address, look at the column on the left for Parcel Details, and there is an entry for Neighborhood.
In order to be considered for funding, proposed projects must be considered eligible under the requirements of the HOME Final Rule, 24 CFR Part 92, as well as City of Springfield funding priorities. Funds may be used to develop and support affordable homeownership through acquisition of land and/or development on already-owned land of new construction, non-luxury housing with suitable amenities. Allowable expenses include real property acquisition, site improvements, demolition, and other expenses, including financing costs.
The following are eligible costs in the HOME program (24 CFR §§ 92.206) and 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).
4. A developer fee, in an amount not to exceed 12.5% of the total development cost, of a funded project.
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.
All funding will be provided on a reimbursement basis. The developer will be required to submit invoices in AIA or a comparable pre-approved format, with appropriate supporting documentation in order to be reimbursed for costs. All payment will be at the sole discretion of the City of Springfield and City reserves the right to perform periodic progress inspections of ongoing work.
Development undertaken with funds made available through this RFP must be completed by December 31, 2019.
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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