RICHMOND HOUSING AUTHORITY (RHA)
REQUEST FOR QUALIFICATIONS (RFQ)
REDEVELOPMENT OF NYSTROM VILLAGE
Date Issued: Wednesday, May 15, 2024
Pre-Proposal Hybrid Meeting (Zoom)
Date: Monday, June 17, 2024, 11:00 AM
https://ci-richmond-ca-us.zoom.us/j/93006379516?pwd=SzZqckhvMm1Za0Z4a1d1NzVxRDR1dz09 Passcode: 283411
Deadline for Questions: Monday, July 10, 2024, 3:00 PM
Date Due: Wednesday, August 7, 2024, 3:00 PM
Download and Submit Proposals to: City of Richmond BidsOnline system, Vendor Registration/Bid Opportunities
https://vendors.planetbids.com/portal/14590/portal-home
Project Website:
https://www.ci.richmond.ca.us/4650/Nystrom-Village
RHA Contact for all communications:
Gabino Arredondo, [email protected], (510) 620-6606
&
Economic Development Department, City of Richmond Contact:
Nannette Beacham, [email protected], (510) 621-1306
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Table of Contents
1. EXECUTIVE SUMMARY -------------------------------------------------------------- 3
2. ABOUT RICHMOND HOUSING AUTHORITY ------------------------------------ 7
3. SITE AND PARCEL SUMMARY ---------------------------------------------------- 10
4. NYSTROM VILLAGE MASTER PLAN & Y-PLAN EXHIBIT ---------------------- 11
5. DEVELOPMENT GOALS ------------------------------------------------------------ 13
6. ROLES AND RESPONSIBILITIES -------------------------------------------------- 14
7. SUBMISSION REQUIREMENTS --------------------------------------------------- 16
8. SELECTION PROCESS -------------------------------------------------------------- 22
9. THE CITY NON-LIABILITY & RELATED MATTERS ------------------------------ 25
10. PROPOSAL SUBMISSION PROCESS ------------------------------------------- 26
11. APPENDIX --------------------------------------------------------------------------- 27
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1. EXECUTIVE SUMMARY
OPPORTUNITY
The Richmond Housing Authority (RHA) is 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 Block B, 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 to 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 Block A (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 Blocks C and D (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). Development teams will also have to incorporate the renovation and repurposing 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 may propose to develop 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 in a responsible and expedient manner with affordable housing development experience, and developers proposing to develop both rental housing phases (Blocks A and B) and who can complete the renovation and repurposing of the 3 to 5 required historical units.
Richmond has a great deal of exciting developments that will continue its historic role as a social, cultural, and civic destination. The preservation and increase of affordable housing on this site is critical to RHA’s mission and City of Richmond City Council Goals and Priorities. The ideal redevelopment will incorporate thoughtful design, replace the existing public housing affordable housing stock, serve a broad spectrum of low-income to high- income individuals, and maximize the number of units that can best serve the community and remain consistent with the neighborhood’s vision.
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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.
The site is pedestrian friendly with multiple nearby amenities. Walkscore.com lists the site as “Very Walkable”, with a Walk Score of 83, and a “Good Transit” rating, being within 1 mile of the Richmond Multi- Modal Transit Station with access to Bay Area Rapid Transit (BART), Amtrak, and AC Transit and 1.5 miles from the Richmond Ferry Terminal.
DEVELOPMENT GOALS
RHA has established six primary development goals for Nystrom Village:
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
PHASING AND RHA/CITY SUPPORT
Phase 1 of the Nystrom Village Redevelopment must include 100 multifamily rental units affordable to households whose income does not exceed 80% of area median income. All
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eligible current residents of the site will have the right to move into the newly constructed units when the first phase is completed. Approximately 65 households currently reside on the site, and it is anticipated that approximately 65 project-based vouchers will be available for the first phase.
It is anticipated that the households currently residing on Block B will be relocated to other portions of the site during construction of Phase 1. Relocation costs will be included as a development cost; however, RHA does not have funding to assist with relocation.
With the exception of 3 to 5 existing historic structures that will be required to be rehabilitated for use as community services, rental offices, manager’s unit, community centers, museum or similar uses, all existing structures on the site will be demolished. It is anticipated that demolition on Blocks A, C and D will occur after completion of the Phase 1 development and all remaining Nystrom residents are relocated to the new Phase 1 units.
Demolition costs will be included as a development cost, although RHA may have limited funding available to assist with demolition.
The phasing and timing of development on the remaining three blocks will depend on completion of the Phase 1 redevelopment, market conditions and the availability of leveraged financing. At this time, no project-based vouchers are available beyond Phase 1.
RHA and the City of Richmond have begun, and the environmental review required under CEQA and NEPA for the entire Nystrom site. RHA has hired a consultant to lead the process and all deliverables will be made available for use by the selected development team(s).
In addition, up to approximately $1.7 million in American Rescue Plan Act (ARPA) funds may be made available as a loan to finance Phase 1 predevelopment costs.
DEVELOPMENT TEAMS
Developers may propose to develop one or more of the four blocks at Nystrom Village.
Preference will be given to developers or development teams that propose to develop both the Phase 1 PHA replacement units and the Block B mixed income rental housing and who will complete the renovation and repurposing of the historic structures, For Phase 1 development on Block B, qualified development teams must have substantial affordable housing development and repositioning experience and must include a developer/operator and property manager (in-house or contract) as well as an experienced urban architect.
For both rental housing blocks, threshold requirements include maximum California Tax Credit Allocation Committee (CTCAC) general partner and property manager experience with points for 9% tax credits.
Development teams for owner housing on Blocks C and D must have substantial ownership housing development experience, including experience with affordable RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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homeownership.
The developer(s) selected through this RFQ (individually, Developer) may enter an Exclusive Right to Negotiate (ERN) with RHA. The ERN will generally define roles, responsibilities, contingencies, and commitments of the Developer and RHA. Upon successful negotiation, RHA and the Developer may enter into a Disposition and Development Agreement (DDA), or other agreement outlining in detail the terms and conditions of the redevelopment of one or more blocks of the Property.
PRE-PROPOSAL MEETING
A pre-proposal meeting over Zoom will be held Monday, June 17, 2024, 11:00 AM https://ci-richmond-ca-us.zoom.us/j/93006379516?pwd=SzZqckhvMm1Za0Z4a1d1NzVxRDR1dz09 Passcode: 283411
Or join by phone:
US: +1 669 444 9171 or +1 669 900 6833 or +1 253 205 0468 or +1 253 215 8782, Webinar ID: 930 0637 9516, Passcode: 283411
Those interested in submitting a proposal in response to the RFQ should, at a minimum, address the Submittal Requirements outlined in Section 7 of this RFQ. Responses will need to be uploaded in the City of Richmond BidsOnline system.
SUBMISSION DEADLINE
Tuesday, August 7, 2024, at 3:00 PM (PDT), proposal materials uploaded to the City of Richmond, BidsOnline system.
QUESTIONS
Questions regarding this RFQ must be submitted through the City of Richmond BidsOnline system by Monday, July 10, 2024, 3:00 PM. Answers to questions will also be posted to the BidsOnline system and all registered developments teams who have selected the Nystrom Village as a bid opportunity will be notified.
It is the proposer’s responsibility to periodically check the Richmond BidsOnline website to view answers to questions received. If RHA finds it necessary to issue an addendum, prospective applicants will receive e-mail notification of the addendum.
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2. ABOUT RICHMOND HOUSING AUTHORITY
DESCRIPTION
The Richmond Housing Authority (RHA) is a public entity chartered by the City of Richmond in 1941 to provide decent, safe, and sanitary housing for low-income individuals and families. Today, RHA’s portfolio includes owning and managing 100 units of public housing at Nystrom Village and associates with 683 affordable housing units with RHA entities/partnerships for a total inventory of 783 units of affordable housing. The operating budget for the agency in fiscal year 2023-2024 is $5.5 million and the agency has 5 budgeted full-time employees. The RHA Board of Commissioners is comprised of the City Council of the City of Richmond with two seats for resident commissioners.
ASSET REPOSITIONING GOALS
RHA has established five primary development goals for Nystrom Village:
1. Convert Nystrom Village to a local PBV contract (Phase 1) using the Section 18 Disposition process.
2. Identify one or more development partners to assist with the redevelopment and operations of a repositioned Nystrom Village
3. Leverage Low-Income Housing Tax Credit (LIHTC) and other state or local development subsidies to address capital needs.
4. RHA will ground lease the rental housing sites to the development limited partnership. Sites for ownership housing will be sold to the develop(s). Except for the ARPA funds references above, the City and RHA will provide no additional gap funding for the project.
5. Preserve and rehabilitate 3-5 existing buildings.
GUIDING PRINCIPALS
To guide the repositioning of RHA assets, four principles were developed. Each addresses issues at the core of a successful repositioning of a public housing authority portfolio.
1. Continue to provide housing for extremely low to very low-income households and families - RHA provides housing for extremely low-income people. Elderly and disabled and school-age children are the two largest demographic categories in RHA housing. RHA provides a critical housing resource to these populations.
2. Improve the physical condition and financial performance of the project - The current physical condition and financial performance of the RHA portfolio are a threat to its ongoing existence. Buildings need to be recapitalized and operations shifted off of the public housing platform in order to preserve these assets.
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3. Leverage skills and capacity of development partners - RHA has a track record of working with development partners to deliver quality affordable housing. RHA should continue this pattern and work with existing affordable housing developers and operators who have internal capacity and who have values that are aligned with RHA. The general partner and property manager for new rental housing must score maximum general partner experience points from the California Tax Credit Housing Allocation Committee (CTCHAC). This is a threshold requirement.
4. Ensure accountability for residents and the public - Repositioning the RHA portfolio should be done without decreasing access to affordable housing for extremely low- income families. Decisions should be clear and transparent. The City / RHA should maintain rights and authority over the repositioned assets to ensure ongoing public benefit.
TRACK RECORD – RHA & City of Richmond
RHA’s and City of Richmond repositioning activities have produced many accomplishments for RHA and the City’s residents. Recent accomplishments include the Hacienda Heights and Nevin Plaza Projects:
Hacienda Heights – 525 Marina Way, Richmond CA 94801
In May 2021, the RHA entered into a 99-year ground lease with Richmond Hacienda LP, a limited partnership controlled by Mercy Housing (the “Partnership”) to redevelop the 150-unit Hacienda property, which had been sitting vacant for several years. In connection with the ground lease, the Housing Authority sold the existing improvements to the Partnership and took back a note which is payable from residual cash flow of the project. The ground lease and related documents obligated the Partnership to rehabilitate the improvements and operate the project as an affordable senior housing development with 148 restricted affordable units and 2 manager’s units. The project is assisted with project-based vouchers provided by the Housing Authority of the County of Contra Costa (HACCC) and a residual receipts CDBG loan provided by the County.
Permanent financing sources also include tax-exempt bonds, 4% Low Income Housing Tax Credit equity, funds from the State Department of Housing and Community Development (HCD) Multifamily Housing Program, and $7 million in grant financing.
Rehabilitation of the improvements was completed in the Fall of 2023, and the project is now fully occupied.
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Nevin Plaza (Phase I) 2400 Nevin Ave, Richmond CA, 94804 In March 2023, the RHA entered into a 99-year ground lease with Nevin Plaza I, LP, a limited partnership controlled by EAH Inc. (the “Partnership”). In connection with the ground lease, the Housing Authority sold the existing improvements to the Partnership and took back a note payable from residual cash flow of the project. The ground lease and related documents obligate the Partnership to rehabilitate the improvements and operate the project as an affordable senior housing development with 140 restricted affordable units and 2 manager’s units. Previous residents, including non-senior disabled households, will be able to return to the building when rehabilitation is complete. The project is assisted with project-based vouchers provided by HACCC and a $3.5 million residual receipts loan provided by the City of Richmond funded with $1.75 million in ARPA funds and $1.75 million in City Affordable Housing Impact Fee funds. Additional permanent financing sources include a $401,000 CDBG loan provided by the County, tax-exempt bonds and 4% Low Income Housing Tax Credit equity. Rehabilitation of the improvements is underway with completion projected for early 2025.
The RHA is currently in negotiations with EAH Housing regarding the proposed ground lease of land adjacent to the Nevin Plaza I site (Phase II) for development of approximately 70 affordable senior apartments and a parking garage that will also serve residents of Nevin Plaza Phase I.
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3. SITE AND PARCEL SUMMARY
PROPERTY DESCRIPTION
ADDRESS
Nystrom Village, 222 Marina Way, Richmond, CA 94801
Florida and Virgina Ave (North to South) and South 13 St. and South 16 St. (East to West) (APNs: 544-111-001, 544-112-001, 544-113-001, and 544-132-001)
SITE SIZE
392,475 SF or 9 acres
ZONING
RM-1 Medium Density Multi-Family Residential.
This district is intended for single and multi-family housing types such as one to three-story garden apartments, historic bungalows and cottages on small lots, townhouses, and stacked flats. A maximum density of 26 dwelling units per acre is permitted, and minimum density of 10 dwelling units per acre is required. In addition to residential uses, this district allows for a limited number of public and semi-public uses such as day care centers, public safety facilities, and residential care facilities that are appropriate in a medium density multi-family residential environment. Neighborhood mixed-use development is allowed at neighborhood nodes identified by the Planning Commission. Small lot single unit and bungalow court development is allowed in the RM-1 District where it would be compatible with the surrounding neighborhood.
GENERAL PLAN
Medium-Density Mixed Use (Residential Emphasis)
Includes mixed-use development with commercial uses encouraged at street-level along corridors. However, residential-only development is allowed and may include condominiums, townhouses, or apartments. Commercial-only development is not allowed.
RM1
RL2
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Projects with commercial components must also include a residential component. New development is required to have a pedestrian-oriented building design with minimal setbacks and parking located to the sides or rear of buildings.
Density: 15 to 50 du/ac
Intensity: Up to 0.5 FAR
Height: Up to 45 feet
FLOOD MAP
Flood Map Area No. 0613C0236G, Area of Minimal Flood Hazard, 0.2% Annual Chance Flood Hazard
TRANSPORTATION SERVICES
AC Transit Bus Line 76, 40, 40X, 681, 668 and 675. Richmond BART Access, Richmond Ferry Service, and Richmond Wellness Trail (including bike lane, and landscape improvements)
4. NYSTROM VILLAGE MASTER PLAN & Y-PLAN EXHIBIT
MASTER PLAN – NYSTROM VILLAGE
The City of Richmond and Opticos Design Inc. worked together to create a Master Plan Exhibit (“Exhibit”) for Nystrom Village (Appendix I). The two teams jointly conducted multiple stakeholders and community meetings to solicit community desires for the site and to receive feedback on the proposed Master Plan. Concurrently, Y-Plan, a University of California at Berkeley partner that implements innovative strategies for empowering youth through education and project civic-based learning, conducted community outreach with Nystrom residents to further understand community desires for the site (Appendix II).
Some Y-Plan recommendations based on community outreach include a desire for additional community space, career center for residents, childcare programs, dedicated youth spaces, and rent to own possibilities.
Feedback from these two outreach processes were incorporated in the creation of the Exhibit. This Exhibit is meant to be an illustration of a financially feasible development that can support over 400 units. The plan included in this RFQ represents a high-density example that is financially feasible and maximizes the unit count for the site. The Exhibit is for example purposes only and does not represent the City of Richmond’s preferred development type.
DESIRED DEVELOPMENT
1. As the highest priority, in Phase 1 replace 100 existing public housing units affordable to households whose income does not exceed 80% of AMI and ensure RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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that current residents have the first right to return.
2. Increase the number of housing units on site.
3. Mix of unit sizes, rental and owner housing types and household income levels.
4. Concentrate the greatest intensity along Marina Way South.
5. Must retain 3-5 original units in a semi-circle configuration (Historic Preservation).
6. A development that interfaces with surrounding neighborhood.
7. Inclusion of community resources and services such as: daycare center, community clinic, museum space, community spaces, retail, career center and teen/young adult center.
8. Provide usable and diverse common spaces, outdoor areas, gathering spaces and community gardens.
9. Maintain four block section of Richmond Wellness Trail – along Marina Way South.
10. No driveways along West Side of Marina Way South - Due to the City of Richmond’s investment in a cycle track as part of the Richmond Wellness Trail.
Section through blocks B, C, D looking north
Section through block A looking north
Block A Block B Block C Block D Total
Acreage 2.38 Acres 2.38 Acres 2.17 Acres 2.17 Acres 9.1 Acres Number of Dwelling Units 100 Units 109 Units 84 Units 84 Units 403 Units Apartment Units 100 109 98 84 391
Townhouse Units 0 0 12 0 12
Units per acre 42 units/acre 46 units/acre 51 units/acre 39 units/acre
Legend
Building
Footprints
Way South
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Common Open space 38,800 sf 11,250 sf 10,500 sf 16,800 sf 77,350 sf Public Open Space 16,300 sf 11,250 sf 10,500 sf 16,800 sf 54,840 sf Semi-private open space 22,500 sf 0 0 0 22,500 sf
Common open space per
unit
388 sf/unit 103 sf/unit 95 sf/unit 200 sf/unit 192 sf/unit Ground-floor community or
retail space
6,000 sf 2,125 sf 1,950 sf 600 sf 10,625 sf
Off-street Parking Spaces 104 spaces 115 spaces 110 spaces 90 spaces 419 spaces Number of Surface lot
parking spaces
0 40 36 22 98
Number of tuck-under
parking spaces
0 75 74 68 217
Number of structured parking
spaces
104 0 0 0 104
Ration of parking spaces to
dwelling units
1.0 space/nit 1.1 spaces/unit 1.0 space/unit 1.1 spaces/unit 1.0 space/unit
5. DEVELOPMENT GOALS
RHA has established four (4) primary development goals for NYSTROM:
1. ADHERENCE TO DESIRED DEVELOPMENT OUTCOMES
• Increase the number of units and increase unit mix on Nystrom Village site. • Increase access to community resources such as inclusion of community space. daycare center, career center, community clinic, museum, and youth spaces. • Improve communication between developer and residents. • Improve safety and security of residents through careful site planning and use of the latest technology.
2. PRESERVE LONG TERM AFFORDABILITY OF NYSTROM VILLAGE
• Replace the existing 100 public housing units with affordable units for households whose income does not exceed 80% AMI and allow current residents to return to Nystrom Village following redevelopment.
• Secure long-term Section 8 contract for Phase 1 that preserves affordability for extremely low and very low-income households.
Development Cost Factor Total Per Unit
Site Acq uisition $43 $12,590,000 $41,551
A&E 5.0% of hc $4,590,000 $16,000
Other Professional/Consultants 1.00% of hc $920,000 $4,000 Construction Costs $240 per nrsf $72,800,000 $241,000
Contractor Fees / General Requirements 12.5% of hc $9,100,000 $31,000 Parking Costs (Surface) $10,000 per space $3,150,000 $11,000 Escalation 5.0% of hc $3,640,000 $13,000
Hard Cost Contingency 4.0% of hc $3,060,000 $11,000
Construction Management 1.5% of hc $1,380,000 $5,000
City Fees $23,000 per unit $6,970,000 $24,000
Financing Costs $6,170,000 $21,000
Marketing & FF&E $4,000 per unit $1,220,000 $5,000
Insurance & Legal 1.0% of hc $920,000 $4,000
Property Taxes 1.2% of hc $1,060,000 $4,000
Soft Cost Contingency 5.0% of soft $790,000 $3,000
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• Continue to serve extremely low and very low-income households and provide services that assist residents.
3. STABALIZE OPERATIONS AND LONG-TERM FINANCIAL VIABILITY • Obtain Section 18 approval from HUD with a determination of obsolescence and new Tenant Protection Vouchers to be project based. Approximately 65 PBV’s will be incorporated into the project.
• Establish initial deposits and annual deposits to replacement reserve adequate to fund anticipated capital needs for 20 years.
4. REPOSITION RHA’S IN THE DEVELOPMENT
• Select one or more partners with experience in asset repositioning, redevelopment, and operation of affordable rental housing.
• Select one or more partners with experience in the development of owner housing, including affordable ownership housing.
• Select partners compatible with RHA’s mission and values. • Provide financial return to RHA to sufficiently support on-going asset management roles related to financial performance and on-going public benefit. • Maintain ownership of rental housing sites by providing long-term ground leases to the development entity(ies).
• Preserve long-term/permanent affordability of affordable ownership units developed on the site.
6. ROLES AND RESPONSIBILITIES
The following table reflects the primary delineation of roles and responsibilities between RHA and the Partner for the Phase 1 replacement of 100 public housing units. This table is intended to convey RHA’s expectations related to primary project roles. As necessary, details are expected to be negotiated and documented in project agreements. Provide any objection to these broad delineations of roles in your proposal. No additional City or RHA subsidy will be provided for development of the project beyond conveyance of the building, and ground lease of the land. The Developer will be responsible for predevelopment activities including design and securing all necessary financing sources, including vouchers with the support of RHA. RHA will have primary responsibility for SAC and Section 18 application to HUD:
RHA PARTNER
RESIDENT ENGAGEMENT
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Resident Meetings/
Communication
Coordinate with partner. Maintain communication with residents through completion of Phase 1. Support with
logistics, planning and creation of content
for all necessary meetings and notices.
Relocation Coordinate with HUD partner. Responsible
for management and maintenance of
residents and units on Blocks A, C and D
until Phase 1 units are complete, and all
existing units are vacated and demolished.
Prepare an implement a relocation plan that
relocates Block B residents to Blocks A, C
and D during construction and allows them
to return to the new units once complete.
Lease Renewal &
Certification (for
returning tenants)
Coordinate with partner. Responsible for signing new leases with residents needed as a result of Low-Income
Housing Tax Credit (LIHTC) and Section 8
Housing Assistance Payment (HAP)
contract.
HUD
Section 18
Application
As the building owner and public housing
authority, RHA is responsible for submitting
the Section 18 and/or Rental Assistance
Demonstration (RAD) contracts to HUD.
RHA is responsible for all certifications
needed in support of applications.
Assist with submission of Section 18 and/or
RAD application by contracting with any
vendors needed to produce due diligence
items including any study or report needed
to support obsolescence, eCNA tool, and
Environmental Review (NEPA & CEQA).
Section 8 Process Facilitate HAP contract between Contra Costa County Housing Authority and
ownership entity regarding Project-Based
Vouchers for Nystrom Village. Based on
recent occupancy levels at the site, RHA
estimates that approximately 65 project-
based vouchers will be available for Phase 1,
assuming temporary relocation of existing
residents during construction is
accommodated on-site.
On behalf of ownership entity, to enter HAP
contract with Contra Costa County Housing
Authority for Section 8 operating subsidy.
DEVELOPMENT
Design Support design process by providing all
available documents and access to the site
as necessary to support the design process.
Responsible for selection of architectural
and engineering team, and management of
the entire design process. Responsible for
all working capital necessary to fund design
tasks needed to obtain permits and begin
construction.
Demolition Support demolition of units on Block B by
granting access to buildings as needed,
Responsible for selection and management
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allowing for reasonable testing needed in
support of developing demolition and
environmental abatement scope and cost
estimates.
of general contractor performing demolition.
Construction Support communication with residents
during construction.
Responsible for selection and management
of general contractor from pre-construction
through final close-out. Managing
communication with residents during
construction.
Finance Ground lease the land to the development
limited partnership. Provide a loan of
available ARPA funding for predevelopment
costs as determined appropriate.
Responsible for securing capital financing
including: LIHTC allocation and investor, tax
exempt bond allocation, construction and
permanent lender, any state development
subsidy. Responsible for providing all
guarantees necessary to secure financing.
OPERATIONS
Property
Management
Responsible for sharing all available and
relevant information with partner and
support relocation of existing residents into
completed Phase 1 units.
Responsible for all aspects of property
management from lease up through
operations.
Asset Management Responsible for asset management related to RHA’s stake in the project including lessor
of land, seller financing, and public benefits
relating to ongoing affordability.
Responsible for asset management roles
customary for an owner or general partner
including reporting and compliance, annual
audits, annual budget review and
forecasting, capital improvement planning.
Land Lease Lease land to the ownership entity on terms
mutually agreed to by RHA and partner
On behalf of the ownership entity, lease land
from RHA on terms mutually agreed to by
RHA and partner.
OWNERSHIP INTERESTS
RHA retains ownership of parcel and
provides ground lease of site.
Partner owns buildings and improvements.
7. SUBMISSION REQUIREMENTS
COVER LETTER
Provide a cover letter describing interest in the site and summarizing the major points RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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contained in the development proposal. specifically, identify which blocks and housing/ownership types the applicant proposes to develop.
TEAM MEMBER EXPERIENCE AND TRACK RECORD
Provide a description of all team members, including the following information as appropriate depending on which blocks, and housing/ownership types the applicant is proposing to develop:
• Demonstrated successful experience on projects similar in scope and type to proposed projects including projects with public/private development relationship and development, financing, construction, and operation of affordable housing.
Development teams for Phase 1 public housing replacement should include an architect and property manager. Demonstrated experience of developer and architect with energy efficiency development.
• For rental housing proposals, evidence that at least one proposed General Partner and the proposed property manager qualify for maximum experience points for 9% Low Income Housing Tax Credits from CTCAC. THIS IS A
THRESHOLD CRITERIA FOR RENTAL HOUSING DEVELOPERS AND PROPERTY MANAGERS.
• Identification of key staff members and project team members. For any development team members not yet identified, please describe your process and timeline for selection.
• Demonstrated financial capacity to complete the project within a reasonable timeframe.
• For each member of the development team (including developer and architect), provide examples of at least three similar projects completed within the past five years. Include the following information for each project: name, address, number of units, total project cost, type of financing, description of relocation requirements and name of development partner(s), if applicable. For the developer, identify any cost or time overruns in the completion of any projects and explain the reason.
REFERENCES
For at least three similar projects (preferably with voucher and housing authority partners for developers proposing to construct and operate Phase 1 public housing replacement units), provide the following references for each development entity:
1. Public Agency
2. Lender
3. Tax credit investor (for partners proposing to develop rental housing)
For the rental property manager, provide the last three consecutive years audited financial statements for three comparable properties and a public agency contact for each project.
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HISTORIC PRESERVATION
Nystrom Village’s association with the WWII federal housing program undertaken in Richmond, its importance as a very early example of public housing in Richmond, and its historic integrity makes Nystrom Village eligible for the California and National Registers as a historic district. The Office of Historic Preservation Department of Parks and Recreation concurred that Nystrom Village is eligible for listing in the National Register of Historic Places under Criterion A. As such, any development at the site will need to retain at least 3- 5 of the original duplexes in their current configuration to confer with this historic designation. Preference will be given to, proposals that include the renovation and repurposing of these historic units.
ENERGY EFFICIENCY PLAN
Describe your experience in and plan for incorporating the highest energy (and water) efficiency standards feasible and your proposed sources of funds, which may include but are not limited to California Energy Commission rebates, investment tax credits, and PG&E rebates, among others.
Additionally, there is a preference for all newly constructed buildings to be all-electric and include solar panels for all new non-residential and high-rise residential buildings.
Residential buildings may include non-electric cooking appliances and fireplaces, and non-residential buildings containing a for-profit restaurant, or an employee kitchen may also apply for an exception to install gas- fueled cooking appliances.
RESIDENT ENGAGEMENT & RELOCATION
Developers, describe your approach to resident engagement and communication. Please break this response into the following phases: pre-construction (including relocation), resident re-leasing, construction period, lease-up, post construction / warranty, and operations. For each phase discuss primary objectives and tactics for engaging with residents. Also discuss your general approach to balancing the needs of residents with a cost-effective approach to construction and achieving the desired rehabilitation scope.
Describe your staff pattern for resident engagement, communication tools and techniques used with residents and internal to the team, and the interface between the general contractor and resident engagement and relocation team.
MARKETING PLAN
Describe your marketing plan including compliance with fair housing laws and, for Phase 1 RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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developers, priorities for existing Nystrom Village residents.
RESIDENT SERVICES
For proposed rental housing, describe in detail your resident services plan. Include the types of services to be provided on site and by whom. To the extent partnerships will be used in the delivery of services, please provide information about the proposed service provider.
OWNERSHIP STRUCTURE
Describe and provide a graphic reflecting the proposed ownership structure including all partners or affiliated entities for each block/phase proposed.
PROPOSED FINANCING PLAN
Describe the proposed financing approach for each block and/or housing/ownership type the developer/development team is proposing to develop. Describe each developer entity’s role in each phase or block, including identifying the entity that will provide financial guarantees to lenders and investors.
For rental housing development, describe proposed federal, State, and private leveraged financing sources and anticipated competitiveness of the proposed development for each source. Describe target income levels consistent with proposed leveraged financing sources. Discuss any innovative financing approaches the developer proposes to use.
For owner housing development, describe the target income levels and price range for proposed market-rate and affordable units. Describe potential federal, State and/or private financing sources for affordable units, and how the developer expects to provide at least 25% affordable units at prices affordable to households at 120% of area median income and either 10% of units at moderate income (120% AMI) or 7% of units at low income (80% AMI), using Health and Safety Code standards (Inclusionary Requirement).
Describe the structure that will be used to ensure long-term affordability, such as a Community Land Trust or resale restrictions. Discuss any innovative financing approaches the developer proposes to use.
FINANCIAL CAPACITY
Provide three financial references with whom the lead development firm has recently obtained acquisition and/or construction financing. Provide the following information for each reference: institution, contact name and title, e-mail address, phone number, and address.
RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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Provide the three most recent audited financial statements and current unaudited financials for each proposed General Partner or Principal. Identify the entity(ies) that will provide financial guarantees to lenders and investors. Unaudited financial statements will be accepted for ownership housing developers without audited statements.
For rental housing developers, provide initial letters of willingness from LIHTC tax credit equity investors to invest in the project and stating their willingness to accept the candidate’s tax credit recapture, net worth, and operating deficit guarantees for any proposed tax credit rental development.
BUSINESS OFFER: PHASE 1 PUBLIC HOUSING REPLACEMENT
For developers proposing to develop the Phase 1 public housing replacement units, include a proposed business offer including the following information:
1. Proposed distribution of cash flow following payment of the first mortgage debt service. RHA expects a minimum of 50% of residual receipts, as allowed by proposed funding sources.
2. Proposed maximum net cash developer fee.
3. General partner asset management fee.
4. Proposed role and terms for RHA in exercising the Right of First Refusal and/or Option relating to the exit of the investor limited partner.
CERTIFICATIONS
Signed certifications from the Developer(s)’ authorized signatory(is) stipulating (see Appendix III):
1. A statement that the candidate is eligible for management general partner experience points, and the proposed property manager is eligible for maximum property manager experience points, under current TCAC Regulations.
2. A statement regarding prior bankruptcy, all outstanding judgments, pending or final, and ongoing or threatened lawsuits against the candidate, individual or any related entity.
3. A statement assuring the availability of all principal staff named in the application, including the name of the Project Manager(s) for the candidate.
4. A statement that the candidate is willing and able to provide all required financial guarantees and net worth obligations of lenders, the limited partner investor, and the RHA.
5. A statement that the candidate is prepared to abide by all applicable City policies with respect to the zoning code, design guidelines, and City objectives for local contracting.
6. Non-collusion affidavit stating no financial contributions to City officials, elected or otherwise, in last five years.
RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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SCHEDULE OF PERFORMANCE
For developers proposing to develop the Phase 1 public housing replacement units, provide preliminary schedules for predevelopment, entitlement, schematic design, design development, financing, and construction. Assume that entitlements are completed approximately January 2025.
Describe proposed development schedule for other blocks/phases proposed by Developer.
LOCAL BUSINESS, LOCAL RESIDENT HIRE & PUBLIC ART REQUIREMENTS To the extent permitted by law, the project will be subject to the Richmond Municipal Code (RMC) including, but not limited to, local business and hiring requirements, including the City’s Business Opportunity Ordinance (RMC Chapter 2.50), the City’s Local Employment Program Ordinance (RMC Chapter 2.56), and the City’s Living Wage Ordinance (RMC Chapter 2.60). The selected developer will also be required to execute a First Source Agreement for hiring residents in accordance with the Local Employment Program Ordinance.
The project shall meet the requirements of Richmond Municipal Code (RMC) One Percent for Public Art on Private Projects Program (RMC Chapter 12.62) by either including on-site publicly accessible art valued at one percent of the Building Development Cost or pay an in-lieu contribution of one percent of the Building Development Cost to the City’s Public Art Project account.
REFERENCES
Provide at least two references for all parties involved.
RFQ SCHEDULE
Task Date
RFQ Issued Wednesday, May 15, 2024
Pre-proposal Meeting Monday, June 17 2024
RFP Due Wednesday, August 7 2024
RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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8. SELECTION PROCESS
1. SELECTION OF DEVELOPERS
The Staff Review Committee, comprised of RHA, City staff, and advisors will carefully review all responses submitted for completeness and compliance with the requirements contained in the RFP and ranking of qualified applicants against the selected scoring criteria.
Following staff review, the Staff Review Committee will evaluate proposals and may request additional information from development teams.
Staff may elect to conduct interviews with the top-ranked teams.
Upon completion of the review process, the Staff Review Committee may make recommendations to the Executive Director.
The RHA Board of Commissioners will be asked to authorize the selection of one or more preferred developer partners and to instruct RHA staff to award one or more Exclusive Right to Negotiate (ERN) agreements. The term of the ERN will be 90 days with two extensions for a total of 180 days.
Completeness of Application
Applicants must submit all required elements. All certifications must be signed by an authorized individual of each development partner submitting. Failure to submit any of the required information is grounds for rejection of any RFP response. RHA reserves the right to reject incomplete applications.
2. TERM SHEET
RHA and the selected firm(s) will negotiate terms and conditions of the development transaction in the form of a Term Sheet. These terms shall include such business points as performance milestones, financial obligations, schedules, ground lease and purchase terms, limits on developer and property manager compensation, including developer fee, asset management fee, property management fee and residual receipts definition and sharing with RHA. At this stage of the process, the developer for the Phase 1 public housing redevelopment will be expected to prepare a detailed pro forma financing plan including but not limited to projected income and operating expenses, construction and permanent sources and uses, tax credit and subsidy calculations, and projected cash flow.
RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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3. DISPOSTION AND DEVELOPMENT AGREEMENT
Once the Term Sheet is approved by the RHA Board of Commissioners, the developer and RHA staff will negotiate one or more Disposition and Development Agreements (DDAs) containing all terms and conditions of the land lease (or sale, for owner housing blocks) and development of the site. The DDA is subject to approval of the RHA board and the RHA board reserves the right to reject the recommended DDA.
4. SELECTION CRITERIA
DEVELOPER EXPERIENCE
a. Extent of experience developing comparable projects. b. Success of comparable projects concerning:
a. Economic success - including maintenance of good physical condition of properties and positive cash flow
b. Overall architectural and landscape design, including energy and water efficiency
c. Marketing and lease-up or sale of residential units
d. Incentives and/or support to commercial tenants (please provide examples of specific tenants)
c. Timeliness of previous performance.
d. Experience with joint public/private real estate ventures and/or comparable large commercial/residential projects.
ARCHITECT EXPERIENCE
a. Extent of experience with market-rate and affordable housing projects. b. Overall quality of architectural and landscape design.
PROPERTY MANAGEMENT EXPERIENCE
a. Quality of ongoing property management, positive cash flow and satisfaction of local agencies and residents.
PROJECT CONCEPT AND FINANCING APPROACH
a. The overall quality and innovation of the proposed project, including green building materials, and energy-efficient and renewable energy measures, methods, and operations.
b. Incorporation of specific design parameters specified in the Richmond Livable Corridors Form-Based Code (see also the Architectural Standards and Sustainability Guidelines).
c. Incorporation of quality design elements and materials throughout the project to RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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ensure the proposed development maximizes the livability of the site and caters to a walkable neighborhood in close proximity to community amenities. d. The extent to which the proposal presents an innovative and realistic project concept, based on the following parameters:
a. Ability to respond to unique development opportunities and constraints. b. Demonstrated understanding of current market and financial conditions, including availability, timing, and competitiveness of proposed leveraged financing sources.
FINANCIAL CAPACITY OF LEAD DEVELOPER
a. Adequate level of existing assets, income, and net worth. b. Ability to raise equity/debt funds.
c. Strong relationship with lenders and investors or demonstrated ability to internally finance the project.
d. For rental developers, ability to provide a track record of providing high quality operation and maintenance, including positive cash flow, properly funded replacement and operating reserves, good physical condition, and quality of resident services.
FINANCIAL TERMS PROPOSED (PHASE 1 PROPOSALS)
a. Sharing of residual receipts with RHA.
b. Maximum developer fee.
c. Schedule of development.
d. Overall value and community benefits of proposed project.
RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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9. THE CITY NON-LIABILITY & RELATED MATTERS
1. NO REPRESENTATION OR WARRANTIES
All facts and opinions stated herein including, but not limited to, statistical data, economic data, and projections are based on available information and no representations or warranties are made with respect to their accuracy or completeness.
2. RICHMOND HOUSING AUTHORITY TO REJECT ANY AND ALL PROPOSALS This RFQ and the selection process shall in no way be deemed to create a binding contract, agreement, or offer of any kind between RHA and any developer. If RHA selects a developer pursuant to this RFQ, any legal rights and obligations between the successful team, if any, and RHA will come into existence only when the DDA is fully executed by the parties, and the legal rights and obligations of each party shall at that time be only those rights and obligations which are set forth in the DDA and any other documents specifically referred to in that agreement and executed by the parties.
Scoring Points
Management Capacity: Evidence of ability to perform the work – principals, staff, experience, technical and professional competence. 15 Prior Performance: quality of work, cost control, compliance with performance schedules.
15 Experience: experience in developing land, affordable housing, and mixed- income housing units that utilized innovative and creative approach 15 Proposed Development Plan and Schedule: including schedule for completion of Phase 1 and subsequent phases, as applicable.
Additional Points for the incorporation of historical preservation
15 5
Proposed Community and Resident Engagement Plan: consistency with desired development goals
10 Financial Capacity: Firm’s documented ability to obtain financial commitments from state and local agencies, private investors, and banks.
A proven track record of a creative and viable financial plan that does not rely on RHA funding.
15 Business Offer: Proposed share of residual receipts, purchase price, ground lease payments and other terms.
10 Total 100
RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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Each developer submitting qualifications in response to this RFQ agrees that the preparation of all materials for submittal to RHA and all presentations are at the developer’s sole cost and expense, and RHA shall not, under any circumstances, be responsible for any costs or expenses incurred by any candidate developer. In addition, each developer agrees that all documentation and materials submitted with a proposal shall remain the property of RHA. Subject to California law and City ordinances relating to access to public records, RHA may be required to publicly disclose all submitted information and materials to third parties requesting such information.
RHA reserves the right to accept or reject any or all developer proposals, to alter the selection process in any way, to postpone the selection process for its own convenience at any time, to waive any defects in any proposal, to cancel this RFP, to issue a new RFP at any time, or to hire any developer they deem appropriate in their sole and absolute discretion within or outside an RFP evaluation process.
3. A REAL ESTATE COMMISSION OR FINDER FEE WILL NOT BE PAID ON THIS
TRANSACTION
4. EXCEPT FOR THE ARPA FUNDS NOTED IN THIS RFQ, CITY FUNDS ARE NOT
AVAILABLE FOR THIS PROJECT AND CITY FEES WILL NOT BE WAIVED
10. PROPOSAL SUBMISSION PROCESS
To participate in the RFQ process, developers must submit a proposal by Wednesday, August 7, 2024, 3:00 PM. The proposal shall be limited to 50 pages (8.5 inches x 11 inches), inclusive of attachments, graphics, forms, pictures, photographs, etc. The required font size is 12 points, with minimum left and right margins of one inch, and top and bottom margins of 0.7 inches.
Please submit proposal through the BidsOnline System portal. Do not include audited and unaudited financial statements for the developer candidates and projects in this package.
In addition to the proposal submitted to BidsOnline System, please upload the following items to this private NELB Consultants Dropbox (RHA Financial Consultant):
The three most recent audited financial statements and current unaudited financials for each proposed General Partner or Principal. Unaudited financial statements will be accepted for ownership housing developers without audited statements
Dropbox Full Address:
https://www.dropbox.com/scl/fo/u7479xkfkrir0izo8v2by/h?rlkey=3gtr7yvehhqd0nsgc0yg1qt82&dl=0 RFQ for the Nystrom Village Development Opportunity | Richmond Housing Authority (RHA)
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The proposal and any required certifications shall be signed by an individual or individuals authorized to execute legal documents on behalf of the proposer. Proposer is responsible for submitting its entire proposal package with all required submittal documents and any modifications or revisions, so as to reach the RHA as designated in the RFQ by the time specified below. Any proposal, modification, or revision received by the City of Richmond BidOnline system after the exact time specified below may be rejected for review. The proposal must be received no later than 3:00 PM (PDT) on August 7, 2024:
City of Richmond BidOnline system Website:
https://vendors.planetbids.com/portal/14590/portal-home
11. APPENDIX
SUPPORTING DOCUMENTS
• APPENDIX I - NYSTROM VILLAGE MASTER PLAN
• APPENDIX II - Y-PLAN NYSTROM VILLAGE POLICY BRIEF
• APPENDIX III - CERTIFICATIONS
• APPENDIX IV - RECEIT ADDENDUM
• APPENDIX V - DISCLOSURE OF LOBBYING ACTIVITIES
• APPENDIX VI - PROFILE OF FIRM FORM
• APPENDIX VII - CERTIFICATION REGARDING DEBARMENT AND SUSPENSION • APPENDIX VIII - HUD FORM 5369-B
• APPENDIX IX - HUD FORM 5369-C