Developer Income Statement - DOC

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					            REQUEST FOR

 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




         REDEVELOPMENT AUTHORITY
        OF THE CITY OF PHILADELPHIA
                             TABLE OF CONTENTS
Section I. PROGRAM GUIDELINES
        A. Goals
        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
        F. References
        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


                                SUBMISSION CHECKLIST
    □   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
        Agent
    □   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.
                                                                       19111
                                                                       19120
                                                                       19124
                                                                       19126
                                                                       19131
                                                                       19132
                                                                       19134
                                                                       19135
                                                                       19136
                                                                       19138
                                                                       19140
                                                                       19141
                                                                       19142
                                                                       19143
                                                                       19144
                                                                       19145
                                                                       19146
                                                                       19148
                                                                       19149
                                                                       19150
                                                                       19151

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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-
   time homebuyers.

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
http://www.phila.gov/rda/neighborhoodStable.html.




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      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
                          dana.hanchin@rda.phila.gov

            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 dana.hanchin@rda.phila.gov. 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
         following criteria:

               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.



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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
      page maximum.

   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.


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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
   http://www.phila.gov/rda/PDFs/Tax_Cert_Form.pdf.


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.




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        Appendix A – Developer’s Disclosure Statement
Refer back to website RF Q posting for “Disclosure Statement” form.




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                                            Appendix B – Development Team Members

Developer Name (Legal Entity):
Primary Contact:                                                          Secondary Contact:
Mailing Address:
Phone:                                                                    Fax:
Email:                                                                    Website Address:
MBE/WBE/DBE? If yes, provide certification.


 Team Member          Primary Person             Firm Name              MBE/WBE/DBE                 Mailing Address               Email/Phone

General
Contractor*
Listing/Sales
Agent*
Architect
(if applicable)
Housing
Counseling
Agency
Attorney
Banking
Relationship
Title Company


* The developer must confirm participation of the General Contractor and Marketing/Sales Agent by providing fully executed letters of intent or
agreements.




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                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
                               Construction      Estimated)




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:



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                                       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
1.
2.
3.




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Appendix E – Philadelphia Tax Status Certification Request
 Download form at http://www.phila.gov/rda/PDFs/Tax_Cert_Form.pdf




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