City of Cupertino
Notice of Funding Availability (NOFA)
and Request for Proposals (RFP)
Issued: November 6, 2023
Deadline: February 6, 2024
The City of Cupertino has issued the fiscal year (FY) 2024/25 NOFA and RFP. The City is requesting proposals for eligible capital housing projects. The City may award and appropriate funds to one or mo re eligible projects in each funding category. Funds m ust be used to serve low-and/or moderate -income households located within the City of Cupertino jurisdiction limits . The City is not accepting applications for public services due to a two-year grant funding cycle ending in FY 2024/25.
T
he following funding sources are on a one-year grant funding cycle (FY 24/25):
1. Below Market Rate (BMR) Affordable Housing Fund (AHF) Capital Housing Projects (up to $4,250,000)
2. Communit y Development Block Grant (CDBG) Capital Housing Projects (approx. $266,000) The esti
mated CDBG dollar amounts may change based upon the final federal budget approved by Congress.
BMR AHF and CDBG allocations are subject to City Council approval and may change as a result.
CAPITAL HOUSING PROJECT FUNDS:
• Funding Source #1- BMR AHF Capital Housing Projects (FY 24/25):
The City estimates up to $4,250,000 will be available to fund eligible BMR AHF capital housing projects on a competitive basis for FY 24/25. BMR AHF funds must be used for eligible housing projects that will s erve low- and/or moderate-income households located within the City of Cupertino jurisdiction limits.
Project Requirements:
BMR AHF capital housing project funds will not be granted or issued as forgivable loans. The City invites eligible non-profit and for-profit Development Entities (DEs) to submit proposals for eligible funding activities , which include, but are not limited to:
Land ac
quisition
New construction
A
cquisition and/or rehabilitation of buildings for permanent affordability Substantial rehabilitation
Project Affordability Requirements:
BMR AHF affordable rental and/or ownership housing proposals must meet the City ’s BMR requirements and offer 99 years of affordability. An affordable regulatory agreement will be recorded against the proper ty t o ensure affordability.
Eligible Development Entities (DEs):
Eligible DEs include non -profit and for -profit organizations licensed to conduct business in the State of California.
• D
Es must demonstrate credit worthiness, financial capacity, relevant experi ence to undertake acquisition, rehabilitation, operation of rental housing, or redevelopment of new affordable housing.
Attachment A - FY 2024-25 NOFA/RFP
• DEs must have no negative financial and project management history within the last five years (i.e., DEs has not been in monetar y default on a loan and has been current on all financial obligations and compliance documentation).
Loan Terms and Requirements:
Rental Ownership
Loan Type: Acquisition, predevelopment/construction
converting to permanent, rehabilitation
Acquisition, rehabilitation and/or
construction
Interest Rate: 3.0% simple interest 3.0% simple interest Loan Term: 30 yrs. 30 yrs.
Affordability
Term:
99 yrs. 99 yrs.
Security: Deed of Trust, Promissory Note and other
regulatory agreements recorded against the
property as required by the City
Deed of Trust, Promissory Note, and
other regulatory agreements recorded
against the property as required by the
City
Security
Position:
Will consider subordinating to a construction or
permanent lender with City approval
Will consider subordinating to a
construction or permanent lender with
City approval
Repayment
Terms:
Interest only. All outstanding interest and
principal will be due in full and payable on or by
the maturity date. Required 50/50 split of the
residual receipts.
Interest only. All outstanding interest and
principal will be due in full and payable on
or by the maturity date. Required 50/50
split of the residual receipts.
Timeframe: It is expected that projects must proceed
expeditiously to construction
It is expected that projects must proceed
expeditiously to construction
Financial Pro-
Forma:
Submit development financial pro-forma to be
reviewed by City. Subject to review by qualified
third-party consultant/organization to determine
reasonableness
Submit development financial pro-forma
to be reviewed by City. Subject to review
by qualified third-party
consultant/organization to determine
reasonableness
Environmental
Conditions:
All environmental conditions (EX: CEQA) that
are applicable to an eligible project must be
satisfied
All environmental conditions (EX: CEQA)
that are applicable to an eligible project
must be satisfied
Project
Conditions:
Project may be subject to Planning
Commission and/or City Council approval prior
to Deed of Trust, Promissory Note and other
recorded regulatory agreements being
executed and disbursement of funding being
approved
Project may be subject to Planning
Commission and/or City Council approval
prior to Deed of Trust, Promissory Note
and other recorded regulatory
agreements being executed and
disbursement of funding being approved
Underwriting Criteria:
Proposals and DE’s will be underwritten in accordance with City policies which includes , but not limited to , compliance with the General Plan, BMR Housing Mitigation Program Procedural Manual (Housing Mitigation Manual), and Policy and Procedures Manual for Administering Deed Restricted Affordable Housing Units (BMR Manual).
• Funding Source #2: CDBG Capital Housing Projects (FY 24/25):
The City estimates allocating up to $266,000 in f unding for eligible CDBG capital housing projects on a competitive basis for FY 24/25. All CDBG projects must meet an eligible national objective and matrix code as per HUD regulations. CDBG capital housing project funds must be used for projects that will serve low -income households located within the City of Cupertino jurisdiction limits. CDBG capital housing projects are subject to HUD Section 3 requirements. The CDBG program is directed toward expanding and maintaining the affordable housing supply; promoting housing opportunities and choices; maintaining and i mproving community facilities;
increasing economic opportunities, accessibility, energy efficiency and sustainability; and providing supportive services specifically for persons of very low- and/or low-income. Targeted groups might include persons who are homeless, seniors, persons with disabilities, and other special needs groups.
CDBG funding is allo cated on a competitive basis . A list of eligible CDBG capital housing project activities is available on the HU D we bsite: https://www.hudexchange.info/cdbg-entitlement/cdbg-entitlement-program- eligibility-requirements/.
Santa Clara County Measure A- Affordable Housing Bond
The City’s NOFA/RFP is issued in conjunction with the County’s NOFA for the Measure A- Affordable Housing Bond. Measure A f unding is available on a rolling basis for development capital funding, project -based vouchers, and acquisition fundi ng. Information and applications are available on the County’s website:
https://www.sccgov.org/sites/osh/HousingandCommunityDevelopment/AffordableHousingBond/Pages/home.a spx
RFP Review Process:
Upon receipt of proposals, staff will conduct an initial review to determine program and/or project eligibility and completeness. The City reserves the right to send a written request to an appl icant requesting additional information. After the RFP deadline has been completed, all eligible and complete program and/or project applications will be forwarded to the C ity’s Housing Commissi on for initial rating and ranking. The Housing Commission is a five-member board appointed by the City Council and serves as the recommendation body to the City Council regarding hous ing policie s and funding recommendations. A Housing Commission public hearing will be held in which the initial rating and ranking of eligible and complete program a nd/or proj ect applications will occur. After the Housing Commission has initially rated and ranked applications, the funding recommendations will be forwarded to the City Council for final approval. A City Council p ublic hearing will be held to determine the final funding recommendations.
Award Notification:
After the City Council has made the final funding recommendations, organizations will be notified with re sults funded through this FY 24/25 RFP.
Disclaimer:
This RFP does not commit the City to award any contract or developer agreement, execute any grant or loan documents, pay any pre-award expenses, or pay any cos ts incurred in the preparation of a propos al. The City reserves the right to: 1) accept or reject any or all proposals received; 2) waive a non-substantive deficiency or irregularity; 3) negotiate with any qualified applicant; 4) execute grant or loan documents in what it believes to be in the best interest of the City; 5) cancel this request , in part or its entirety, if it is deemed to be in the best interest of the City; 6) reject the proposal of any applicant who has previously failed to perform properly ; 7) reject the proposal of any applicant who has failed to complete a contract within t he specified timeframe; 8) reject t he proposal of any applicant that is not in a position to fulfill a resulting contractual obligation; or 9) recommend partial funding of a proposal.
Evaluation Criteria:
Proposals will be reviewed and scored relative t o the below program an d project scoring summ ary. The maximum possible score is 100.
Scoring Summary Points
1. Organization Experience and Capacity 50
2. Program/Project Readiness 30
3. Program/Project Leveraged Funds 20
Maximum Possible Score 100
RFP Application Information & Deadlines:
The RFP application period will open at 8:00am on Monday, November 6, 2023, and will end at 5:00pm on Tuesday, February 6, 2024. Organizations who intend to apply for funds through this RFP must apply online at www.citydataservices.net. To obtain a temporary login username and password, please visit and request at www.citydataservices.net. For additional questions, please contact Alec Vybiral, Housing Planner, at [email protected] (408) 777-1347. Any RFP application that does not meet the deadline will not be accepted.
Note: All proposals are subject to the conditions, instructions and specifications included in this RFP.
Applicants will be notified of upcoming meetings and public hearings to discuss the expenditure of these funds.
The City will provide alternative accessible formats of this document upon request. If you need this document in an alternative format such as large print, Braille, audiotape, or computer disc, please contact the City at the contact information listed above.