Property Project Proposal by dgy17464


More Info
									                Project-Based Voucher Program Proposal Made by
                            Franklin Heights, L.L.C.
                              A Component Unit of
              The Harrisonburg Redevelopment and Housing Authority

             Submitted at or before 12:00 noon (Eastern Daylight Time)
                                On August 20, 2010

To: Project-Based Vouchers Committee
Michael G. Wong, Executive Director
Harrisonburg Redevelopment and Housing Authority
286 Kelley Street
P O Box 1071
Harrisonburg, VA 22802

A. Description of Housing Owned

The Harrisonburg Redevelopment and Housing Authority (The Authority”) through its
component unit, Franklin Heights, L.L.C., is applying for 25 project-based vouchers.

Specifically, The Authority will have 25 units of housing located at Hill Street, Gay
Street, Summit Street, Myrtle Street, Kelley Street and East Johnson Street available for
occupancy by July 1, 2011. These housing units are critical for the expansion of
affordable housing for Harrisonburg-Rockingham County due to the demand as identified
by the increased number of families with children in emergency and transitional shelters.

B. Location and Description of Sites and Amenities

“The Forkovitch Properties” are comprised of 25 fundamentally sound living units, which
are distributed through nine (9) buildings located on scattered sites at Hill Street, Gay
Street, Summit Street, Myrtle Street, Kelley Street and East Johnson Street in the City of
Harrisonburg. These units include 24 three bedroom units and one (1) four bedroom unit.
The living units are currently leased to tenants and as each lease term ends, The Authority
will renovate the units on a rolling project basis with all units to be completed by June 30,

Harrisonburg Redevelopment Housing Authority (HRHA) will significantly improve the
stock of affordable housing in Harrisonburg through the purchase and renovation of the
nine buildings known as “The Forkovitch Properties.” These properties are located near
other blighted properties in the area and will contribute to improved security due to
increased outdoor lighting, the installation of security cameras as well as active property
management. Renovations and improvements will focus on:

1. Promoting neighborliness and discouraging vandalism and unlawful gatherings by:

• Removing overgrown vegetation and objects obstructing observation from public
         areas and the living units
• Adding site lighting for safe access to entries and parking areas
• Defining parking areas and limiting access to non-resident parking
• Where possible, creating front porches that encourage people to be outside, observing
         neighborhood comings and goings
• Installing security cameras linked to HRHA’s existing surveillance system

2. Improving energy performance and lowering utility costs for residents by:

• Replacing windows that do not have Low-E glass
• Upgrading heating and cooling system with units having a SEER value of 15
• Removing window and door casing and floor base at exterior walls, caulking the joints
        and reinstalling the trim
• Adding insulation in attics to achieve R-40
• Insulating crawlspaces

3. Fitting-out the buildings for a 20-year maintenance cycle by:

• Replacing siding on units where it is damaged and/or mildewed
• Replacing wood stoops with concrete stoops and covering them with a roof where
• Covering stairs leading to upper-floor entries
• Re-grading where necessary to route surface water around buildings
• Upgrading appliances and plumbing fixtures in the majority of units
• Installing new floor covering throughout

4. Increasing the stock of units accessible to those with disabilities by:

• Creating an accessible layout that can implemented on the ground floor of up to 6
• Building to Universal Design standards which will allow elderly residents to age in

The Forkovitch Properties are located close to a public transit line and shopping and
personal services are located within two (2) miles of the units. There is access to a public
park in close proximity to all units. The opportunity for obtaining childcare services is
near by. The Lucy Simms Community Center is also nearby and offers a variety of
community, child and family services. The offices of the Harrisonburg Rockingham
Social Services District and Harrisonburg Health Department are located within one (1)
mile of the units.


C. Number of Project-Based Vouchers (PVBs) Requested

374 Hill Street               4                  0
610 East Gay Street           4                  0
631 East Gay Street           4                  0
405 Summit Street             2                  0
406 Summit Street             2                  0
357 Summit Street             2                  0
611 Myrtle Street             4                  0
243 Kelley Street             0                  1
189 E. Johnson Street         2                  0
TOTAL                        24                  1

D. Contract Term Requested

The length of contract term requested is up to 30 years including conditional extensions.

E. Schematic Design Drawings/Project Readiness for Rehabilitation Projects

The schematic drawings are included with this proposal and are located at Attachment E.

F. Evidence of Site Control

Evidence of site control is shown at Attachment F, which contains the executed Contract
for Purchase and Sale of Real Estate dated July 24, 2010, between Forkovitch Family II,
LLC, Forkovitch Family III, LLC, Forkovitch Family IV, LLC, and Forkovitch Family
V, LLC, each a Virginia limited liability company (collectively the “Seller”), and
Franklin Heights, LLC, a Virginia limited liability company (the “Purchaser”). The
target date for transfer of the property to Franklin Heights, LLC, is on or before
October 29, 2010. Copies of the articles of organization, certificate of organization and
operating agreement of Franklin Heights, LLC are also provided at Attachment F.

G. Proposed Contract Rents

Franklin Heights, LLC agrees to accept The Authority’s proposed payment rate of up to
110% of the Fair Market Rate established annually by the Department of Housing and
Urban Development (HUD). Consistent with HUD’s regulations, Franklin Heights, LLC
will procure the use of a HUD certified appraiser to establish the specific rates per
bedroom size as allowed within The Authority’s guidelines and federal regulations.
Franklin Heights, LLC agrees to assume all costs associated with establishing the rate and
will procure this service upon notification of a successful award.


H. Management Plan and Supportive Services

The Authority, through its component unit, will be responsible for all property
management and support service activities at the proposed sites. The Authority has more
than 50 years of experience in successfully managing federally subsidized housing
programs separately and through component units which include public housing, housing
voucher, Section 8, new construction, elderly and disabled housing, historic, and low
income housing tax credit programs. The Authority has developed policies and
procedures that provide full property management services including certification and
recertification of applicants, leasing and marketing of units, maintenance, preventive
maintenance upkeep and unit turnover, and lease compliance.

The Authority has also developed expertise and experience in the delivery of the Family
Self-Sufficiency Program (FSS). This program was created to assist participants in the
Housing Choice Voucher and Public Housing Programs to improve their economic
independence and reduce their reliance on subsidized assistance programs. Services are
provided through a client centered plan development process which establishes annual
goals. FSS support services include case management and counseling, escrow funding,
job search assistance, budgeting and linkages to other community resources.

The Authority has developed a tenant program to ensure individuals have the skills to
maintain their homes in a healthy and safe manner which supports a viable community.
All tenants will participate in a skills assessment which will identify areas of competency
and need. Skills assistance will be provided in housekeeping and basic unit upkeep.
Newsletters and quarterly resident meetings will be used to provide routine and on-going
communication and allow for tenant feedback.

All of these activities will be provided through a staffing allocation process which is
reviewed and established annually. Staffing, allocated through percentage of time,
includes: 5% of the Executive Director; 5% of the Finance Director; 5% of the
Maintenance Mechanic; 5% of the Unit Turnover/Maintenance Mechanic; 5% of the
Mechanic Aide; 10% of the FSS Coordinator; and 10% of the FSS Housing Specialist.

The Authority has developed and established standard operating procedures and manuals
to manage this program, which are compliant with Federal regulations. These manuals
include: Personnel Policy Manual of Harrisonburg Redevelopment and Housing
Authority, Family Self Sufficiency Program Manual, Admissions and Continued
Occupancy Policy Manual, and a Resident’s Handbook.

An organizational chart, management resumes and the manuals referenced above are
included with this proposal and located at Attachment H.

I. Current Tenancy and Plans for Temporary Relocation

Twenty-one of 25 units of housing are currently occupied by tenants. Nineteen tenants
have Housing Choice Vouchers issued by Harrisonburg Redevelopment and Housing


Authority. As each lease approaches its expiration date, the tenants will be given the
required notice to relocate to other housing using their vouchers. During the time of the
vacancy, the units will be renovated. Upon the completion of each renovation the
relocated tenant will be given the opportunity to return to their vacated housing unit.

J. Financial Detail

A pro forma providing full financial detail, including project sources and uses and
projection of performance or current performance is provided as Attachment J.

K. Experience of Owner, Manger and Supportive Service Provider(s)

The Authority employs 25 individuals and operates on an annual budget for FY 2009 of
approximately $6.4 million. A copy of its resume is located at Attachment K.

As previously stated, The Authority has extensive experience in the financing of public
projects, partnering with the City of Harrisonburg on development initiatives to address
blight and blighting conditions, management of affordable housing assistance programs,
and building community coalitions to address community needs, these activities have
been and will continue to be accomplished through The Authority’s philosophy of
treating all individuals with respect and dignity, basing all decisions on rational and
provable data, and delivering all services with efficiency.

L. Statement of Public Purposes to be Achieved

Approval of this proposal is consistent with and supports The Authority’s public mission
which is to promote adequate and affordable housing, economic opportunity and a
suitable living environment free from discrimination; and to foster redevelopment of
blighted areas to ensure the economic, social and housing vitality of our community.

Additional public purposes accomplished through this initiative includes a strategic
refocusing of The Authority’s housing stock to prioritize housing assistance for the
elderly, persons with disabilities and individuals desiring to improve their financial
independence. This initiative will address an identified community need with accessible
housing, support of the Olmstead Ruling of de-institutionalization, increase the
availability of senior housing, and provide opportunities for tenants to become more
financially independent. Approval of this proposal will also allow The Authority to
continue its initiative to increase the number of affordable housing units available in the
community. This project proposal includes the upgrade of unit appliances and plumbing
fixtures to Energy Star/EarthCraft standards, updating of mechanical and electrical
building systems, increasing the number of accessible units, and installation of site
lighting and security cameras to improve crime prevention through design standards.

When the renovations are completed the demographics of the residents will not place
additional demands on the currently available facilities and services. The facilities (bus


lines, schools, hospitals, public parks, etc.) available to residents of the units will
continue to be adequate.

M. Schedule of Unit Availability and Location

 LOCATION           DATE         DWELLING    UNITS                            BUILDING
                    AVAILABLE STRUCTURES                                      TYPE
 374 Hill Street    On or Before      1          4                            2 Story Quad
 610 East Gay       On or Before      1          4                            2 Story Quad
 Street             6/30/2011
 631 East Gay       On or Before      1          4                            2 Story Quad
 Street             6/30/2011
 405 Summit         On or Before      1          2                            Split Level
 Street             6/30/2011
 406 Summit         On or Before      1          2                            2 Story
 Street             6/30/2011                                                 Duplex
 357 Summit         On or Before      1          2                            2 Story
 Street             6/30/2011                                                 Duplex
 611 Myrtle         On or Before      1          4                            2 Story Quad
 Street             6/30/2011
 243 Kelley         On or Before      1          1                            1 Story Single
 Street             6/30/2011                                                 Residence
 189 East           On or Before      1          2                            2 Story Upper
 Johnson Street     6/30/2011                                                 and Lower

A detailed Outline Specification/Scope of Work for the renovation project is located at
Attachment M.

N. Owner References with Respect to Similar Projects (Attachment N)

        Kurt Hodgen, City Manager
        City of Harrisonburg
        345 South Main Street
        Harrisonburg, VA 22801

        (Reference currently in Rockingham County approval process)
        Joe Paxton, Administrator
        Rockingham County
        20 East Gay Street
        P O Box 1252
        Harrisonburg, VA 22803


       Gayl Brunk, Executive Director
       Valley Associates for Independent Living, Inc.
       205 South Liberty Street
       Harrisonburg, VA 22801

O. Required Certifications of Franklin Heights, LLC and Harrisonburg
   Redevelopment and Housing Authority (Attachment O)

1. Form HUD-5369-C (Certifications and Representations of Offerors: Non-Construction
2. Form SF-LLL (Disclosure of Lobbying Activities)
3. Form HUD-50070 (Certification for a Drug-Free Workplace)


(Reference currently in Rockingham County approval process)
       Joe Paxton, Administrator
       Rockingham County
       20 East Gay Street
       P O Box 1252
       Harrisonburg, VA 22803


To top