December 3, 2024
Richmond Housing Authority
Economic Development
DATE: December 3, 2024
TO: Chair Martinez and Members of the Richmond Housing
Authority Board of Commissioners
FROM:
Nannette Beacham, Director of Economic Development
Antoinette Terrell, RHA Executive Director
Gabino Arredondo, Project Manager
Subject:
Nystrom Village Request for Qualifications (RFQ)
Presentations, Potential Selection and Exclusive Rights to Negotiate Agreement (ERNA)
FINANCIAL IMPACT: RHA proposes to enter into a ground lease for the development of the land with a limited partnership and
provide a loan of available ARPA funding for
predevelopment costs as determined appropriate.
Disposition of the Phase 1 site will transition the property from HUD public housing to private ownership and
operation. Completion of the 100 replacement PHA units
and relocation of remaining PHA tenants on the site will reduce RHA operating costs. RHA will receive a share of residual receipts/surplus cash flow from the Phase 1
development as payment on the ARPA loan and/or
ground lease. Future disposition of the remaining blocks will reduce RHA land holding costs and provide the
potential for residual receipts ground lease payments
and/or land sales revenues.
PREVIOUS COUNCIL
ACTION:
June 20, 2023
AGENDA
REPORT
December 3, 2024
STATEMENT OF THE
ISSUE:
RHA began a new procurement process to identify an
affordable housing development partner to reposition and redevelop the Nystrom Village public housing project site.
Past attempts to redevelop Nystrom Village have failed, however with the recent positive track record of RHA
finding partners for the Hacienda and Nevin Plaza sites, RHA released an RFQ and received multiple qualified
proposals. The RHA Board of Commissioners is
requesting presentations from the top two ranked
proposals and has the option of selecting a preferred
developer to begin ERNA negotiations.
RECOMMENDED ACTION:
RECEIVE a presentation from the top two respondents
for the redevelopment of Nystrom Village Request for
Qualifications (RFQ); PROVIDE DIRECTION to staff,
which may include the identification of a preferred
developer; and if a preferred developer is identified, and ADOPT a resolution authorizing the Executive Director of the Richmond Housing Authority (RHA) to negotiate and
execute an Exclusive Right to Negotiate Agreement
(ERNA) with the selected affordable housing developer
with a term not to exceed ninety (90) days with an option for one mutually approved extension of not more than
thirty days – Richmond Housing Authority (Antoinette
Terrell 510-620-6784/Nannette Beacham 621-1306).
DISCUSSION:
The Richmond Housing Authority (RHA) began a new procurement process to identify an affordable housing development partner to reposition and redevelop the Nystrom Village public housing project site. Past attempts to redevelop Nystrom Village have failed, however with the recent positive track record of RHA finding partners for the Hacienda and Nevin Plaza sites the RHA released an RFQ and received multiple qualified proposals. The RHA Board of Commissioners is requesting presentations from the top two proposals and has the option of selecting a preferred developer to begin ERNA negotiations.
Nystrom Village Property
The site is a four-block housing development situated between Florida and Virgina Ave (North to South) and South 13 St. and South 16 St. (East to West) in Richmond, CA 94804. The four-block area encompasses 9 acres and currently houses 51 wood frame duplexes built in 1941. The site has a mix of one hundred (100) 0-, 1- and 2-bedroom units.
December 3, 2024
RFQ for the Redevelopment of Nystrom Village
On May 15, 2024, RHA released an RFQ for the Redevelopment of Nystrom Village.
The RHA was seeking one or more qualified affordable housing developers or development teams to partner on the redevelopment of Nystrom Village.
Phase 1 (anticipated to be developed on one block, as identified in the aerial photo below) must include at least 100 multifamily rental units to replace the existing public housing units. Pursuant to US Department of Housing and Urban Development (HUD) regulations, these 100 units will be restricted for occupancy at affordable rents by households whose income does not exceed 80% of the area median income.
The Phase 1 development team will work with RHA to convert Nystrom Village into a local Project Based Vouchers (PBV) contract using the HUD Section 18 Disposition process. The team will also leverage Low-Income Housing Tax Credit (LIHTC) and other state and local development subsidies to develop Phase 1.
It is anticipated that a second Block (Phase 2) will be developed as multifamily rental housing that may include a mix of income and affordability levels, potentially including market-rate units, while the last two blocks (Phase 3 and 4) will be developed as for- sale ownership housing, with at least 25% of the units affordable to households with incomes not greater than 120% Area Median Income (AMI), depending on market
December 3, 2024
conditions and available subsidized financing opportunities. Development teams will also have to incorporate the renovation and repurpose of approximately 3 to 5 duplexes due to the site's historical significance to the World War II Homefront History of Richmond.
Developers or development teams were able to propose developing one or more blocks. The blocks designated for multifamily rental development will be ground leased to the respective developer entities; the blocks designated for ownership housing will be sold to the developer. Preference will be given to developers proposing to develop Phase 1 responsibly and expediently with affordable housing development experience, and developers proposing to develop both rental housing phases and who can complete the renovation and repurposing of the 3 to 5 required historical units.
Development Goals:
1. Replace the 100 Public Housing Units in Phase 1
2. Increase the number of housing units on the site
3. Preserve the long-term affordability of Nystrom Village
4. Ensure current residents can return
5. Ensure long-term financial viability
6. Reposition RHA’s role in the development
Proposals
Ninety-three (93) prospective bidders downloaded the opportunity, and 3 responsive proposals were submitted at the deadline. The RHA received three proposals from qualified developers: Eden Housing, Inc. and Community Housing Development Corporation; Gorman & Company and Novin Development; and National Community Renaissance. Proposals were scored by three City Staff Members and two Nystrom United Revitalization Effort (NURVE) Community members according to the point system established in the RFQ pg. 25. Below are the scores of the reviewers.
Reviewers 1 2 3 4 5 Total Score Average Score
Eden/CHDC 90 93 96 92 83 454 90.8 1
Gorman/Novin 83 88 86 80 89 426 85.2 2
National Community Ren. 82 92 63 88 79 404 80.8 3
Presentations
The Board of Commissioners has requested, at this point, to have presentations from the two top respondents based on the scoring of the review committee to inform the decision process to select a preferred candidate to begin negotiations. The Eden Housing, Inc. & Community Housing Development Corporation and Gorman & Company & Novin Development teams were notified that they will have an opportunity to present a 10-to-15-minute presentation on their Nystrom Proposals. The RHA Board
December 3, 2024
of Commissioners may select a preferred developer or continue to seek additional information and return to decide at a future meeting.
Summary of Key Points
Eden/CHDC Gorman/Novin
Experience Eden started in 1968 (55 yrs),
163 Properties owned or
managed, 12,600 homes (units).
CHDC (33 yrs)
Gorman 40-year experience,
13,000 units, 168 projects
Richmond
Properties
Eden - Miraflores Senior
Apartments. CHDC - Legacy
Court, Hacienda Heights, Barett
Terrace
Phase 1 110 homes (Units) The two-
building development is
organized with podium parking, 3
to 4-story
Block A: 109 Unit 100%
Affordable Replacement
Housing Units (30%-60% AMI)
Relocation
Phase 1
Occupy as many homes as
possible prior to applying to HUD
for RAD conversion; Relocate the
least amount of households by
vacating Block D as the primary
project site.
Temporarily relocating Block A
residents to other
accommodations to allow
redevelopment of the Phase 1
replacement units. Upon
completion of construction, all
residents will be offered an
opportunity to move into the
newly completed 109-unit PHA
replacement housing
development
Additional
Phases
Eden and CHDC propose having
the Right of First Refusal (and/or
First Option as applicable) for
each phase of development.
Block B: 106 Unit 100% Large
Family Affordable Housing
(30%-80% AMI); Block C: 146
Unit 100% Senior / Workforce
Affordable Housing (30% -
80% AMI) Block D: 42 For-
Sale Market Rate Townhomes
DOCUMENTS ATTACHED:
Attachment 1 - Resolution
Attachment 2 - RFQ Nystrom Village