D E V E L O P E R Q U A L I F I C AT I O N S
R OLLING A DMISSIONS
N EIGHBORHOOD S TABILIZATION P ROGRAM
S INGLE -FAMILY R EHABILITATION
T ARGETED A REAS
P HILADELPHIA , PA
NOVEMBER 2, 2009
OF THE CITY OF PHILADELPHIA
TABLE OF CONTENTS
Section I. PROGRAM GUIDELINES
B. Eligible Properties
C. Targeted Zip Codes
D. Income Guidelines
E. NSP Subsidy Guidelines
F. Rehabilitation Standards
G. Economic Opportunity Requirements
H. Homebuyer Housing Counseling
I. Continued Affordability
Section II. RFQ PROCESS
A. Submission Requirements
B. Questions about RFQ
C. Evaluation Criteria
Section III. WRITTEN STATEMENT OF QUALIFICATIONS
A. Letter of Authority
B. Developer Description
C. Development Team Capacity
D. List of Completed, Planned and Under Construction Projects
E. Financial Position
G. Certificate of Non-Indebtedness
H. Conflict of Interest
APPENDIX TO RFQ
Appendix A Developer’s Disclosure Statement
Appendix B Development Team Members
Appendix C Housing Units Completed, Planned and Under Construction
Appendix D References
Appendix E Philadelphia Tax Status Certification Request
□ Letter of Authority
□ Written Statement of Qualifications and Appendix Submissions
□ Organizational Documents
□ Two Years Audited Financial Statements
□ Interim Financial Statement for Most Recent Quarter
□ Evidence of Working Capital Available
□ Letters of Intent/Agreements between General Contractor and Marketing/Sales
□ Conflict of Interest Statement
I. PROGRAM DESCRIPTION
The purpose of this Request for Qualifications (“RFQ”) is to select for-profit and non-profit developers
to acquire foreclosed properties, renovate and sell them to income-qualified owner occupants in
targeted areas of the City of Philadelphia through the Neighborhood Stabilization Program (NSP).
Developers qualified through this process will be eligible to participate in NSP and request 100%
financing to achieve NSP development objectives.
A. Goals: Authorized by the Housing and Economic Recovery Act of 2008 (HERA), the City
of Philadelphia received $16.8 million from the U.S. Department of Housing and Urban
Development (HUD) to support the acquisition, rehabilitation and resell of vacant,
foreclosed properties to low-moderate-middle income households under the Neighborhood
Stabilization Program (NSP). Approximately twenty-five percent of NSP funds will be
used to develop rental units. In June 2009, the City received an additional $3.75 million
from the Commonwealth of Pennsylvania to support these activities.
B. Eligible Properties: Eligible properties must be vacant and foreclosed or abandoned.
Occupied properties are not eligible. A property is abandoned when mortgage or tax
foreclosure proceedings have been initiated, no mortgage or tax payment has been made by
the property owner for at least 90 days, AND the property has been vacant for at least 90
days. A property has been foreclosed upon at the point that under state or local law the
mortgage or tax foreclosure is complete. A foreclosure will not be deemed complete until
after the title for the property has been transferred from the former owner to the lien holder
under some type of foreclosure proceeding or transfer in lieu of foreclosure, in accordance
with state or local law. Properties must be purchased from the foreclosing entity.
C. Targeted Zip Codes: NSP will focus its efforts in targeted zip codes in select
neighborhoods throughout the City. Properties will be considered outside targeted zip
codes on a case by case basis.
D. Income Guidelines: All properties assisted with NSP funds must serve households with
incomes at or below 120% AMI. Twenty five percent of the NSP funds are targeted for
low-income families at 50% AMI or below.
E. NSP Subsidy Guidelines: The RDA will provide 100% NSP financing for both the
acquisition and rehabilitation at 0% interest, with no fees. The RDA expects that the total
development cost will exceed the anticipated sales price. The gap created will be funded
through a NSP subsidy, secured by a soft second mortgage and transferred to the
homebuyer at sale. The RDA’s guideline is a maximum of $80,000 per property in NSP
subsidy. Developers can receive up to $20,000 in a developer’s fee per property for
successful completion at the time of sale to the income-eligible homebuyer.
F. Rehabilitation Standards: NSP will finance minor or moderate rehabilitation of
foreclosed properties in order to place properties back into service and ensure that the
improved properties are competitive as homeownership units. RDA will provide oversight
and guidance to ensure renovations meet minimum RDA specifications, are cost-effective,
energy-efficient (ENERGY STAR) and of quality design for the target market. Prevailing
wage does not apply as projects will most often be a single property, rehabilitated one unit
at a time.
G. Economic Opportunity: MBE/WBE/Section 3: The RDA supports the creation of
opportunities for minority, women, and disabled owned businesses enterprise and for low
and moderate income residents. Developers will be required to comply with the NSP’s
Economic Opportunity Policy and reporting requirements.
H. Homebuyer Housing Counseling: All homebuyers of NSP single-family properties will be
required to complete eight hours of HUD certified home buyer counseling. Homebuyers
must occupy the NSP property as their primary residence, but they do not have to be first-
I. Continued Affordability: NSP subsidized properties must meet the affordability
requirements upon project completion, for a maximum period of 15 years, depending level
of NSP subsidy. Affordability requirements apply regardless of the term of any loan or
mortgage or the transfer of ownership and will be secured by a second mortgage that is
assumable by subsequent income-eligible homebuyers.
For more information about NSP, please visit the RDA website at
II. RFQ PROCESS
A. Submission: The RDA will review and approve developers on a rolling admissions basis.
There is no deadline to submit a Statement of Qualifications. No briefing session will be
held; however, prospective applicants may request a meeting with NSP staff prior to
submitting their application. One hard copy bound original and two copies of the
submission as well as a CD-ROM containing all materials submitted in a PDF format
should be sent to:
Dana Hanchin, Director
Neighborhood Stabilization Program
Redevelopment Authority of the City of Philadelphia
1234 Market Street, 16th Floor
Philadelphia, PA 19107
Ph: (215) 209-8614; Fax: (215) 209-8714
Incomplete submissions will not be reviewed. If a submission contains misrepresentation
of information, either willful or inadvertent, it may be cause for immediate elimination of
the developer from further consideration. Misrepresentation will also be cause for
termination of any contracts subsequently executed between the RDA and the developer.
After its review of submissions, the RDA reserves the right to request additional or
clarifying information from selected parties. Developers who fail to submit additional
information requested will not receive further consideration.
B. Questions: All questions or comments regarding this RFQ must be submitted in written
form via email to Dana Hanchin at email@example.com. Questions will not be
accepted via telephone.
C. Evaluation Criteria: The RDA will only consider qualifications from developers with a
successful and recent track record in building or renovating housing that serves one or more
of the following income levels: middle or market rate, mixed-income, moderate, and low.
The RDA will evaluate statements submitted in response to the RFQ on the basis of the
1. Similar Experience and Successful Track Record
2. Quality and Capacity of Development Team
3. Construction Capability and Readiness to Proceed
4. Marketing/Sales Capacity
5. Solid Financial Position with Access to Working Capital
Statements of qualifications should be organized exactly as set forth below. Developers may
include additional relevant information in appendices as they see fit.
III. WRITTEN STATEMENT OF QUALIFICATIONS
A. Letter of Authority: Developer must sign a letter documenting his or her authority to bind
and represent the entity and provide full and complete contact information. This includes
name, mailing address, phone, fax, email and website address. The letter must also
authorize one additional representative to act on behalf of the development entity. One
B. Developer Description: Developer must describe the organization, corporation, partnership,
or joint venture that indicates the jurisdiction under whose laws the organization is formed
or will be formed that will serve as developer and take title to NSP property. Identify all
principals, members, and/or parties that will participate or have a financial interest. Include
a copy of the certificate of incorporation, certificate of partnership, 501 (c) 3 letter, if
applicable and other relevant organizational documents. Please complete RDA’s
Developer’s Disclosure Statement as directed in Appendix A.
C. Development Team Capacity: Developer must describe current members of the
development team and discuss ability of team to respond quickly in a market-driven
program. The narrative must address expertise in the following areas:
Property sourcing and selection; negotiation of purchase agreements
Scope of work development and cost estimation
Comparable market analyses to estimate as-is and as-complete values
Financial loan closing process
Experience with federal assistance housing development programs
Marketing/Sales Strategy, include experience with buyer-assist programs
Energy-efficiency building measures, such as ENERGY STAR
Federal regulations related to lead-based paint testing and remediation.
Complete the table as directed in Appendix B. The developer must confirm participation
of the General Contractor and Marketing/Sales Agent by providing fully executed letters of
intent or agreements. One page maximum, excluding attachments.
D. List of Completed, Planned and Under Construction Projects: Developer must discuss track
record and similar/relevant experience. Provide an estimate of the number of NSP
properties you have the capacity to manage at any one time and estimated total number of
NSP properties completed and sold to eligible homebuyers within a twelve month period.
If targeting certain zip codes, please provide. Please complete table as directed in
Appendix C. One page maximum, excluding attachments.
E. Financial Position: Developers must demonstrate financial soundness and capability.
Attach two years of audited financial statements and the most recent interim financial
statement for the last quarter. Please identify sources of short term working capital, which
may take the form of cash on hand or available lines of credit. If available, provide
commitment letters from lenders amounts of financing available to support the developer’s
ability to participate in NSP.
F. References: Developer must provide contact information for three (3) individuals for which
the developer has successfully performed on similar projects in the last 24 months. At least
one reference must be from a financial institution where the developer has a current
borrowing relationship. With this submission, the developer grants the RDA permission to
contact the references and perform background checks as deemed appropriate. Please
complete table as directed in Appendix D.
G. Philadelphia Tax Status Clearance: RDA will need to clear the developer and key members
of the development team to confirm that they are not currently indebted to the City; and will
not at any time during the term of the agreement be indebted to the City, for or on account
of any delinquent taxes, liens, judgments, fees or other debts for which no written
agreement or payment plan satisfactory to the City has been established. The developer and
general contractor must complete and submit a Philadelphia Tax Status Clearance Form as
part of the RFQ. Please complete form attached in Appendix E or download form at
H. Conflicts: Developer must provide a conflict of interest statement and identify any past,
current or anticipated contractual or financial relationship the RDA, it staff or board
members as well as the City of Philadelphia or any other contractual or financial
relationship that may give the appearance of a conflict of interest.
Appendix A – Developer’s Disclosure Statement
Refer back to website RF Q posting for “Disclosure Statement” form.
Appendix B – Development Team Members
Developer Name (Legal Entity):
Primary Contact: Secondary Contact:
Email: Website Address:
MBE/WBE/DBE? If yes, provide certification.
Team Member Primary Person Firm Name MBE/WBE/DBE Mailing Address Email/Phone
* The developer must confirm participation of the General Contractor and Marketing/Sales Agent by providing fully executed letters of intent or
Appendix C – HOUSING UNITS COMPLETED, PLANNED AND UNDER CONSTRUCTION
Project Name Address Completed, Completion # of HO or Targeted New, Mod Total Lead Funding
Planned or Date Units Rental AMI Rehab or Gut Development Source
Under (Actual or Rehab Cost
Estimated number of NSP properties to be managed at any one time:
Estimated number of NSP properties completed and sold to eligible homebuyers within a twelve month period:
Targeted NSP Zip Codes:
Appendix D – References
Developer must provide contact information for three (3) individuals for which the developer has
successfully performed on similar projects in the last 24 months. At least one reference must be
from a financial institution where the developer has a current borrowing relationship. With this
submission, the developer grants the RDA permission to contact the references and perform
background checks as deemed appropriate.
Contact Person Firm Name Affiliation Contact Information
Address, Phone, Email
Appendix E – Philadelphia Tax Status Certification Request
Download form at http://www.phila.gov/rda/PDFs/Tax_Cert_Form.pdf