Attachment 1
REQUEST FOR DEVELOPER QUALIFICATIONS
AFFORDABLE HOUSING REHABILITATION AND
LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY
CITY OF CORONADO
ACTING AS THE SUCCESSOR AGENCY TO
THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF CORONADO City of Coronado
1825 Strand Way
Coronado, CA 92118
ISSUE DATE:
February 23. 2024
DEADLINE FOR SUBMISSION:
April 24, 2024
RFQ FOR AFFORDABLE HOUSING REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY 2 I. INTRODUCTION
The City of Coronado (City), acting as the Successor Agency to the Community Development Agency (Agency) of the City of Coronado, is facilitating an affordable housing opportunity to rehabilitate and operate a two-unit (duplex) residential property located at 517-519 Orange Avenue. The City intends to rehabilitate the duplex and convert it to a long-term affordable housing site (55 years or more) for low-income households. The City is offering this opportunity as a long-term ground lease.
Development teams that can demonstrate the experience, capability, and creativity to rehabilitate and operate the Project are invited to respond to this Request for Qualifications (RFQ) by outlining their relevant experience, financial capabilities, conceptual plans, and other pertinent information to enable the City to identify a shortlist of development teams for consideration.
The selection process will consist of two phases. The first phase will involve identification of a shortlist based on team qualifications and ability to achieve the objectives of the City. The second phase will involve interviews of each of the shortlisted teams with City staff. The City intends to select a developer team, proceed with the negotiations, and enter into a Disposition and Development Agreement (DDA) and long-term Ground Lease for the rehabilitation and subsequent operation of the Project.
II. BACKGROUND
The City purchased the property located at 517-519 Orange Avenue (APN 536-381-05-00) in June 2022. The approximately 3,500 square-foot property is developed with a 2-story residential duplex that includes two 2-bedroom, 1-bath apartments that offer approximately 1,000 square-feet of living space. The property has four off-street parking spaces provided by an attached 2-car garage and adjoining carport that are accessed from an alley at the rear of the property. The units are currently occupied.
Attachment 1
RFQ FOR AFFORDABLE HOUSING REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY 3 Attachment 1
RFQ FOR AFFORDABLE HOUSING REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY 4 III. SCOPEOF SERVICES
The specific scope of work and fee schedule for each work product will be individually agreed upon. The City is looking for a developer team that:
A. Has experience building and financing affordable housing projects.
B. Will obtain all other funding needed and required permits within approximately two years and begin rehabilitation of the Project within a year of securing all necessary funding.
C. Can provide professional guidance to incorporate specific necessary elements for efficient operation of an affordable housing complex into the design and ultimate rehabilitation of the Property.
D. Has demonstrated successful property management of comparable properties.
E. Will expeditiously enter into DDA and Ground Lease.
F. Is prepared to expeditiously take over all property operation and management responsibilities of the Project.
Attachment 1
RFQ FOR AFFORDABLE HOUSING REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY 5 IV. SELECTION CRITERIA / QUALIFICATIONS
The City is requesting qualification statements to assess interest in this opportunity. The selected developer team will be invited to work with the City. The RFQ response should express the developer team’s interest, vision, and capability to rehabilitate and operate the Project. Concise and focused responses are encouraged.
A. RFQ Purpose and Timeline
The purpose of this RFQ is to solicit qualified development teams for affordable housing rehabilitation and long-term property management. The City intends to:
1. Review the Statement of Qualification (SOQ) submissions.
2. Develop a short list of qualified development teams.
3. Conduct interviews with qualified development teams, if deemed necessary at the City’s sole discretion.
4. Enter into exclusive negotiations for a period of time not to exceed thirty (30) days to conclude a professional services agreement.
Based on the review and ranking process of the RFQ responses, the City will select one or more development teams with whom to enter into a professional services agreement with the City. Provided below is the timeline for the RFQ process. The City may change the proposed dates and/or RFQ process in its sole discretion as it deems necessary or appropriate.
Date Milestone
February 23, 2024 RFQ Issued
March 25, 2024 Requests for Clarifications / Questions Due by 2:00 p.m.
April 8, 2024 Responses to Questions Posted by COB
April 24, 2024 SOQ Submission Deadline
May – June 2024 City Evaluates SOQ/ Conducts Interviews (Date TBD) August – September 2024 City Council Authorization to Award Contract (Date TBD) B. Submittals
Development teams responding to this RFQ shall submit four (4) hard copies and one (1) digital PDF file (on thumb drive). The digital PDF file must be identical to the hard copies. Responses to this RFQ shall not exceed a total of 25 pages, including any appendices, using a minimum font size of 11. Submittals must be received by the City no later than 5:00 p.m. on April 29, 2024. Submittals should be addressed to:
“517-519 Orange Avenue Affordable Housing Project”
Attn: Richard Grunow
1825 Strand Way
Attachment 1
RFQ FOR AFFORDABLE HOUSING REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY 6 Coronado, California 92118
Incomplete submittals, incorrect information, or late submittals shall be cause for disqualification.
Copies received by e-mail and/or fax will not be accepted. Any questions regarding the project and this RFQ should be directed to:
Richard Grunow, Community Development Director
[email protected]
Phone: 619-522-7338
C. Minimum Qualifications
The development teams must be able to provide and maintain policies of professional liability (errors and omissions), automobile liability, and general liability insurance from an insurance company authorized to do business in the State of California in an insurable amount of not less than two million dollars ($2,000,000) for each occurrence. For professional liability insurance, the policy shall be on a claims made and in the aggregate basis. The City shall be named as an additional insured on the required general liability and automobile liability policies.
D. Submission Requirements
By submitting a response to this RFQ, the prospective consultant waives all rights to protest or seek any legal remedies whatsoever regarding any aspect of this RFQ. Acceptance of any statement submitted pursuant to this RFQ shall not constitute any implied intent to enter into a contract for affordable housing rehabilitation and long-term property management services. This RFQ does not commit the City to pay any costs incurred in the preparation of a response to contract for services. All responses to this RFQ shall become the property of the City.
Format of Submittals
Submittals should consist of the following elements in this order:
1. Cover Sheet: The cover should include the title, submittal due date, name, address, telephone number, and e-mail of the principal contact.
2. Table of Contents: The table of contents shall list corresponding headings and pages to allow for easy reference by the reviewers.
3. Cover Letter: The cover letter shall be brief and clearly identify the respondent’s principal contact, including all forms of contact for this individual and identify any partners or subconsultants. The signatory shall be an individual with legal authority to bind the prime, partners, and subcontractors.
4. Development Entity:
• Identify the lead development team that would enter into the DDA/ Ground Lease with Attachment 1
RFQ FOR AFFORDABLE HOUSING REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY 7 the City, including partners, lead planning and design firm(s), and other consultants, if known.
• Provide narrative that details whether the development team has rehabilitated and operated affordable housing properties.
• For each firm of the development team, briefly describe its role, relevant experience, partners, and specialization.
• Identify the project manager and personnel implementing the development concept through day-to-day management and their level of experience and responsibility. • Provide resumes for each of the project managers and key staff members that will be working on the Project.
5. Comparable Development/ Property Management Experience:
• Provide up to three (3) examples of comparable project experience, particularly with rehabilitation and operation of affordable housing projects. The City prefers examples of projects that are underway or were completed within the past seven (7) years by the principals of the development team. The projects should include dates, contact information, location, size, and amenities.
• Describe property management and affordability compliance experience with Low Income Housing Tax Credits, Regulatory Agreements, and other applicable State and Federal rules and regulations.
• Outline the process to take over property management for the Project by January 2024 and ensure continued high quality property management through rehabilitation and operation thereafter.
• Indicate if the development team has experience working on projects in the City of Coronado.
• Provide additional information regarding the development team that identifies length of time in business, ownership structure, operating structure, principal offices, and specify which office would service the Project.
6. Financial Capability: Provide a narrative that identifies the development team’s capacity and financial strength to secure the equity and financing required to implement the proposed rehabilitation of the Project. Disclose if the development team has ever defaulted on its financial obligations, has had developments that were foreclosed upon, or if bankruptcy has ever been filed.
7. Vision and Development Program Summary: This section should demonstrate a cohesive vision for the rehabilitation and operation of the Project, including:
• A brief narrative describing the envisioned development concept, approach to rehabilitation and operation, and how the Project fits into the development team’s overall business strategy.
• A description of the principal features likely to be included in a rehabilitation program. • A conceptual financing plan that incorporates tax credits and/or other funding sources for rehabilitation and/or construction in the near future.
Attachment 1
RFQ FOR AFFORDABLE HOUSING REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY 8
8. Implementation Timeframe: Discuss the development team’s timeline to initiate and complete rehabilitation activities after executing a DDA and Ground Lease. Outline a critical path schedule for project completion and methodology of due diligence, including formulation of development concepts, financing strategy, City planning reviews, and rehabilitation schedule.
9. Rate Sheet: This would be the billing rates for various positions that may be utilized for services requested by the City. Rate changes must be authorized by the City in writing and specified in the agreement between the consultant and City. The rate sheet shall also include the standard mark-up rates for the use of subconsultants and allowable reimbursable expenses.
Selection Committee
The City shall create a selection committee consisting of City staff members. The selection committee will review and analyze all responses, contact references, complete interviews as necessary, and select qualified development team(s) that provide the City the most value in contract services provided.
The City reserves the right to reject any or all responses, to waive any informality in the specifications or RFQ process, or to cancel in whole or in part the RFQ if it is in the best interest of the City to do so.
E. Consultant Selection Criteria & Evaluation.
The City has the sole authority in its sole discretion to select the preferred development team(s) and reserves the right to reject proposals based on information submitted and from interviews, investigation of previous and current projects, financial capability, and other pertinent factors. In addition, the City reserves the right to approve or reject all subconsultants and/or team members proposed to be retained by the principal consultant.
Respondents will be evaluated on the strength and experience of the development team, the team’s vision for long-term management and operation of the Project, and the team’s experience with implementation of rehabilitation and operations of comparable projects. The City has assigned the following 100-point system to the specific evaluation criteria:
ITEM POINTS SELECTION CRITERIA (100 points maximum)
1 20 Development Entity
2 30 Comparable Development/Property Management Experience 3 20 Financial Capability
4 20 Vision and Development Program Summary
5 10 Implementation Timeframe
Total 100
The City anticipates that interviews will be held with the shortlisted development teams. Following the interviews, the selection committee will recommend a finalist to commence negotiations, subject to City Attachment 1
RFQ FOR AFFORDABLE HOUSING REHABILITATION AND LONG-TERM PROPERTY MANAGEMENT OPPORTUNITY 9 Council consideration and approval.
Notwithstanding a recommendation of the selection committee, the City retains the sole right to exercise its judgment concerning the selection of a consultant and the terms of any resultant agreement. The City is the ultimate decision-making body and makes the final determinations necessary to arrive at a decision whether to award, or not award, a contract.
F. Conflict of Interest
The consultant must comply with the requirements of all applicable federal, state and local conflict of interest laws affecting the City. They include but are not limited to: Government Code Section 1090, et. seq.; Government Code Section 87100, et. seq.; Health and Safety Code Section 34281; the federal conflict provisions including those set forth in 24 CFR Part 85. In addition, the consultant may be required to comply with all additional conflict of interest provisions related to the City of Coronado, when applicable. This is not a comprehensive statement of all potentially applicable conflict of interest provisions. Any prospective consultant with a conflict of interest, real or apparent, will not be considered.
G. Award of Contract
A Disposition and Development Agreement Sample is shown in Attachment A. Proposers are required to carefully review the Sample Agreement and Insurance Requirements identified therein. The terms of the Agreement, including insurance requirements, are the City’s standards. Proposals must indicate whether the proposer is willing to execute the Agreement as drafted and comply with the insurance requirements. Proposer’s response must also indicate any requests for changes to the provisions of the Agreement. There will be no modifications to the Agreement that are not requested in a proposal. The City reserves the right to reject any requests for changes to the Agreement and/or to deem the proposal non-responsive if the proposer requests changes to the Agreement, including to the insurance requirements.
H. Public Records Act
All responses to this RFQ become property of Coronado and will be kept confidential until a recommendation for award of a contract has been announced. Thereafter, submittals are subject to public inspection and disclosure under the California Public Records Act (Cal. Govt. Code Sections 6250 et seq). Therefore, unless the information is exempt from disclosure by law, the content of any submittal, request for explanation, exception, or substitution, response to these specifications, protest, or any other written communication between the City of Coronado and any Respondent regarding the procurement, shall be available to the public.