Multifamily RFP Information SessionJanuary 23, 2018

Tom McCasland, DirectorSylvester Turner, Mayor

Multifamily 2018 Priorities, Loan Terms and RFP DetailsDevelopment Standards TimelineProcurement ProceduresSelection CriteriaCompliance DiscussionQ&A

AGENDA

Multifamily PrioritiesPromote Development

New Construction Reconstruction Renovation Purchase

In Following AreasIn Following Areas

Complete Communities

Complete Communities

Concerted Revitalization Areas / TIRZs

Concerted Revitalization Areas / TIRZs

Low Poverty Areas / High Performing

Schools

Low Poverty Areas / High Performing

Schools

Preservation and Conversion

Preservation and Conversion

Permanent Supportive / Special

Needs Housing

Permanent Supportive / Special

Needs Housing

TransitOriented

Development

TransitOriented

Development

Complete Communities

Concerted Revitalization Areas

RFP Details

Sites must have a city of Houston address Sources of Funds – HOME, CDBG, TIRZ

and any other sources availableEligible for new construction, rehabilitation,

acquisition and demolitionExperienced developers with capacity only

Loan Terms

Awards to be structured as non-amortized loans payable at maturity*1% interest only* (subject to cash flow) 10-40 year loan term and LURA (includes

24 month construction term)Subordinate debt, but LURA senior to all

liens

*Not applicable to PSH or transactions without senior debt

Timeline

Applications Due Friday, March 30th 3:00 pm (sharp)

Threshold Review and Final Selection Monday, April 30th

HCDD Underwriting and Project Review Committee 120 Days

Housing Subcommittee Third Tuesday of each month

Document Preparation and City Council Approval

4 Weeks after Housing Subcommittee Approval

HCDD Procurement Procedures

Presentation by Tywana Rhone

Development Standards

and Accessibility

Accessibility2010 ADA Standards for Accessible Design with 11 HUD Exceptions

Third-party review of the drawings using appropriate accessible standards is required.

Accessibility -The Process A detailed review of the drawings using

appropriate accessible standards will be conducted by a Third Party Consult. The report will include detailed comments and requirements backing up the comments.

An interim inspection of the project to occur when the construction of one of each accessible floor plan types are at 50-70% completed.

A final inspection

Development Standards

HCDD Minimum Property Standards For New Construction& Reconstruction

City Standard: TDHCA’s Multifamily Rules & QAPwith three main exceptions

Higher standards for floodplain development

Floodway development prohibited

Exception

Lower threshold for poverty rates – 25% Exceptions for

rehabilitations and sites in Complete Communities, CRAs and TIRZs

Exception

City Standard: TDHCA’s Multifamily Rules & QAPwith three main exceptions

Higher threshold for school performance standards Exceptions for

rehabilitations and sites in Complete Communities, CRAs and TIRZs

Exception

City Standard: TDHCA’s Multifamily Rules & QAPwith three main exceptions

Applicationsfor HCDD

Competitive Funds

HOME, CDBG, TIRZ

HCDD CompetitiveFunds Application

Scoring Criteria

Developer Experience

Site Location

Project Information

Financial Analysis

SCORE CRITERIA

Developer Experience

Years of experience Number of transactions Financial capacity

Key Scoring Criteria

Site Location

Complete Community Concerted Revitalization

Area (CRA) Poverty concentration Etc.

Key Scoring Criteria

Project Information

Project readiness Mixed income composition Local support

Key Scoring Criteria

Financial Analysis

Proforma analysis Cost analysis Leverage analysis Etc.

Key Scoring Criteria

Compliance Standards

City of Houston MBE / SBE

Section 3 – Employment and

contracting opportunities

Davis Bacon – Labor standards

HCDD MWSBE Policy

HCDD takes all necessary affirmative steps to ensure that MWSBEs and labor surplus area firms are used to the extent possible.

In addition, ensure that minority, small business enterprises are solicited on all applicable projects when local, state and federal triggers are met.

Construction Goal AmountsAnnual citywide MWSBE is 34% for construction. For city funded projects, HCDD shall observe the goal stipulation based on the city’s awarded amount solely.

HCDD shall observe the following goals for construction contracts funded with federal grant dollars, pursuant to federal statutes/regulations: • 12% participation for construction contracts over $3,000,000.• 11% participation for construction contracts from $1,000,000 -

$3,000,000.• 10% participation for construction contracts less than $1,000,000.• 4% SBE Cap for contract-specific goal.

Section 3 General Policy

Section 3 is the legal basis for providing jobs for residents and awarding contracts to businesses in areas receiving certain types of HUD financial assistance.

Under the Section 3 HUD Act of 1968, wherever HUD financial assistance is expended for housing and community development, to the greatest extent feasible, economic opportunities will be given to Section 3 residents and businesses in that area housing.

Funding Threshold • The rule that triggers implementation of Section 3 requirements is “new”

employment. Federally funded projects in excess of $200,000, and subcontracts in excess of $100,000 are required to follow the policy and procedures of Section 3 once the need for “new” employment is established.

• If you have a need for Lower-Tier Subcontractors and/or New Hires, you will be required to comply with the following performance goals, if applicable to your need:

a) 10% of construction contract must be awarded to Section 3 Business.b) 3% soft cost (non-construction) budget must be awarded to Section 3

Business.c) 30% New Hire goal states 30% of new hires must be selected.

Who are Section 3 Residents?

Section 3 residents are: Public Housing Residents; andLow and very low income persons who live

in the metropolitan area or non-metropolitan county where a HUD -assisted project for housing or community development is located.

Questions