SECTION 2: SCOPE OF SERVICE
SECTION 2: SCOPE OF SERVICES
The selected Co-Developer Partners will act in a full-service capacity, advising the NBHA on the development of appointed site(s). This will include programs of work involving the development of affordable housing assets designed to provide long lasting affordability at these sites and other product mixes that would produce the optimal financial return from development and operations to sustain the affordability and capital improvements of low or moderate-income housing in perpetuity.
2.1 Role of the NBHA
NBHA will play the following roles in the planning and development of the Project:
- HUD Contact - NBHA will manage and take responsibility for all communication with HUD, and the submission of program documents and evidentiary to obtain all HUD approvals including but not limited to Section 18 Demo/Dispo and/or RAD/Section 18 Blend and mixed-income approval. To the extent any such documents or evidentiary are within the knowledge or responsibility of the Co-Developer Partners, NBHA will expect the Co-Developer Partners to prepare such documents and evidentiary as NBHA may direct.
- Provider of Funding for Leverage Purposes - NBHA may grant, loan, or otherwise make available to the Co-Developer Partners funds for the development of the affordable units to assist in the leveraging of funds for the overall revitalization effort. The Co-Developer Partners will be required to leverage NBHA funds by securing private and other public funding and to secure all funding for non-public housing units, as well as any supportive services deemed appropriate by NBHA.
- Provider of Operating Subsidies - NBHA will coordinate the Project Based Vouchers with Twin Rivers Opportunities. NBHA will not provide to the Co-Developer Partners any amount larger than what it receives from HUD less an amount it will retain for its monitoring and asset management functions. In compliance with federal regulations, Section 8 Project Based Vouchers may be available.
- Landowner -It is NBHA's intent to enter into a long-term ground lease on the development site, or portion thereof, with the Owner Entity of each development phase. NBHA expects to receive annual ground lease payment for each development site.
- Relocation - NBHA will be responsible for any necessary relocation of residents during the development project(s).
- Disposition - NBHA will assume primary responsibility for the disposition of the site as necessary to phase specific owner entities.
- Asset Manager - NBHA will continue to have asset management responsibilities related to the developed under the redevelopment project(s). NBHA will monitor and enforce the terms of its Lease and the Regulatory and Operating Agreement with the Co- Developer Partners and require that all housing units be managed in accordance with applicable local, state and federal requirements. NBHA will develop an asset management division to manage the property after a 2-year transition period from Stabilized Occupancy.
- Monitor Co-Developer Partners Compliance with Section 3 - NBHA will monitor the Co- Developer Partners' plans and efforts for reaching Section 3 goals and objectives. Section 3 requirements include not only resident employment but also contracting with Section 3 business entities.
- Monitor Co-Developer Partners Compliance DBE/MBE/WBE Contracting Goals - NBHA will monitor the Co-Developer Partners' plans and efforts for reaching eligible Disadvantaged Business Enterprises (DBE), Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) goals and objectives. The Co-Developer Partners' strategy must be coordinated and integrated with NBHA's Compliance Department throughout the development process.
2.2 Responsibilities of the Co-Developer Partners will Include:
Throughout the development of the Project, the Co-Developer Partners will work closely with all stakeholders, including NBHA staff, NBHA public housing residents, the surrounding community, and NBHA consultants, including but not limited to The Barner Group. The Co- Developer Partners will be responsible for ensuring that the final master plan is approved, financed, and implemented.
Site Selection Validation - As previously noted, NBHA has identified properties as the primary sites for the implementation of the projects. The selected Co-Developer Partners will perform the due diligence necessary to determine if NBHA-identified sites are viable for purposes of the development process. In the event the Co-Developer Partners do not deem sites to be viable the Co-Developer Partners will assist with the site selections and acquisition of cost feasible alternate sites.
- Oversee and Implement Development Efforts - Provide the necessary staffing, expertise, supervision and guarantees to implement all aspects of the development fully and expeditiously as required by the Master Development Agreement.
- Hire and Manage Consultants and Contractors Necessary for Planning and Implementation - Develop a competitive financing application. Procure other consultants and/or contractors and coordinate all tasks necessary for all financing applications, finalization of the master plan, and all implementation tasks. At a minimum, the Developer Partner's team will need to include consultants appropriate to complete funding applications, master planning, architectural, environmental review, market analysis, geo- technical studies, civil, mechanical, and electrical engineering, and any other activities deemed necessary by the Development Partner and NBHA. Respondents are strongly encouraged to demonstrate participation on their team, whether by joint-venture arrangements or otherwise, of local expertise in areas of relevance to the planning and development process, including LIHTC financing and construction matters.
- Maintain Communication Regarding Project Progress With NBHA, HUD, All Key Stakeholders and The Larger Public - NBHA will establish a regular schedule of team meetings, in which the Co-Developer Partners will participate. Moreover, the Co-Developer Partners will be responsible for submitting monthly progress reports to NBHA, in such formats and media as NBHA might direct, on the project status and schedule, including but not limited to design, permits, financing, resident coordination, etc.
- Develop and Maintain Quality Control Measures - The Co-Developer Partners will be responsible for ensuring the Projects are constructed and managed with the highest quality materials and workmanship. The Co-Developer Partner will be required to implement quality assurance and control measures to ensure effective performance by all parties in all aspects of the program.
- Develop and Maintain a Detailed Development Schedule and Critical Path Schedule - Develop and maintain a detailed schedule of events, predicated on financing deadlines that include pre-development activities, construction start, project stabilization and permanent loan close. Develop a Critical Path Schedule for all phases of construction, and lease-up and stabilization.
- Foster Resident Involvement in Project Implementation (Occupied Sites) - Facilitate and foster the involvement of public housing and other neighborhood residents in the design and implementation of the master plan. In cooperation with NBHA, keep residents informed of the status of the project, assist in providing job opportunities for residents during and after implementation, and assist/encourage resident businesses.
- Be Responsive to Local Community and Neighborhood and Governmental Interests - Promote and maintain good relations with community and neighborhood groups, and federal, state and local governments.
- Compliance with Laws - Comply with all applicable federal, state and local laws, rules and regulations applying to the activities required by the Agreement.
- Debarment - The Co-Developer Partners must provide evidence that any subcontractor is not debarred, suspended, or otherwise prohibited from professional practice by any federal, state or local agency.
- DBE/MBE/WBE Opportunities - The Co-Developer Partners will take all necessary affirmative steps to assure that disadvantaged, minority, and women-owned business enterprises are used to the greatest extent feasible in compliance with Presidential Executive Orders 11625, 12138, and 12432, and as promulgated in 24 CFR Part 85. NBHA's goals and expectations are that the selected Co-Developer Partners will meet or exceed 20 percent of the total value of all contracts and subcontracts awarded to qualified minority owned firms, and 5 percent of the total value of all contracts and subcontracts awarded to qualified woman owned firms. The goals/expectations for DBE/MBE/WBE participation apply to each contracting action valued in excess of $100,000- regardless of the Co-Developer Partners' procurement activity are otherwise not applicable to 24 CFR Part 85.36. The selected Co-Developer Partners shall have a viable program in place to assure the goals are met or exceeded. A monthly report to the NBHA will be required by the Co-Developer Partners to accurately demonstrate the level of effort and compliance.
- Section 3 - The Co-Developer Partners will be expected to develop a strategy for fostering Section 3 employment, training and contracting opportunities throughout the development process that are consistent with the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u). NBHA is committed to ensure that all contractors and any tier subcontractors that are awarded a contract in excess of $100,000 for work generated through the expenditure of HUD funding shall take all necessary and reasonable steps to provide meaningful, full- time, permanent employment and training to Section 3 qualified persons. The Section 3 employment goal is 30-percent of all new hires. Further, all contractors and any tier subcontractors that are awarded a contract in excess of $100,000 for work generated through the expenditure of HUD funding shall take necessary and reasonable steps to provide business opportunities to Section 3 qualified business concerns. The Section 3 contracting goal is 10-percent of contract and subcontract value. The selected Co-Developer Partners shall have a viable program in place to assure the goals are exceeded. A monthly report to NBHA is required by the Co-Developer Partners to accurately demonstrate the level of effort and compliance.
Prepare a Market Analysis Addressing the Residential Components of the Plan -_In order to finalize the overall development program, prepare a market analysis that will: assist in determining the proper mix of units and confirm that proposed rents and housing prices are supportable in the local market.
Funding and other Applications - The Co-Developer Partners will assist NBHA with preparation of documentation necessary to obtain any and all project approvals from HUD. In addition, the Co- Developer Partners will prepare all Low-Income Housing Tax Credit and other funding applications that will help to leverage NBHA's investment into the property.
Master Planning Process - Plan, coordinate, and lead a comprehensive master planning process that will solicit meaningful input from NBHA and all local stakeholders It is anticipated the master planning process will take several months with multiple charrettes and will require several versions of site plans, renderings and other media to clearly articulate the master planning options.
Prepare Final Master Plans - In consultation with NBHA, the residents and other interested stakeholders, refine the conceptual designs provided by NBHA and ensure that the development design supports the program goals, feasibly achieves the unit counts envisioned, and is acceptable to NBHA, HUD, and the community.
Obtain Environmental Clearances - In collaboration with NBHA, procure the necessary consultants and prepare the necessary documents to obtain environmental clearances from all interested agencies.
Plans and Specifications - The Co-Developer Partners will be responsible for the preparation of the infrastructure and building plans and specifications in accordance with NBHA's environmental objectives and design Standards which will be subject to NBHA's review.
Produce an Overall Financing Plan - Produce an attainable financing plan for the overall development project. The overall financing plan will be developed in conjunction with the master plan and market analysis. The financing plan must demonstrate a sensitivity and approach in using NBHA funds in the most efficient manner, maximizing leveraging of all funding to the greatest extent possible.
Prepare the Finance Proposal/HUD Rental Term Sheet - Provide required information to assist the preparation of the Section 18 Demo/Dispo and/or RAD/Section 18 Blend Application.
Financing Application(s) - In accordance with the Agreement, the Co-Developer Partners will be required to pursue diligently and use best efforts to obtain all financing necessary to implement the master plan in a timely fashion, which may include, but not be limited to, tax credits, tax-exempt bonds, state and local funds and private debt.
Maximize the Leveraging of Public and Private Resources - Maximize the leveraging of public and private resources by pursuing all reasonable sources of financing and utilizing a variety of partners and partnerships. Take full responsibility for securing all financing sources in a timely fashion. Coordinate discussion and negotiations with financial institutions and private partners. All financing terms are subject to review and approval by NBHA.
Obtain Financing - Through the use of Low-Income Housing Tax Credits ("LIHTC"), HOME Funds, Community Development Block Grant Funds, funds, and other public or private funding sources, to develop the property.
Obtain Equity Investment - Using competitive process, obtain equity financing commitment on the best terms currently available as required by the Agreement and subject to NBHA's approval.
Guarantees - In accordance with the Agreement, provide all guarantees required for the successful financing of the revitalization effort, including completion guarantees, operating deficit guarantees, and tax credit adjuster or recapture guarantees and guarantees of performance under the Agreement. NBHA will require that the Co-Developer Partners demonstrate financial ability to honor the guarantees and indicate how they intend to honor the guarantees if necessary.
Operating Feasibility - As required in the Agreement, structure such reserves and other devices as will reasonably guarantee the long-term operating feasibility of the Project, utilizing no more subsidy than commit by NBHA.
Accounting/Financing - As to be provided for in the Agreement, maintain accounting records and ensure Project financing is available at the appropriate times and utilized in the appropriate manner.
Hire Qualified General Contractors and Oversee Construction Activities - The Co- Developer Partners will create and implement a process for selecting the most qualified General Contractor. During construction, the Co-Developer Partners shall provide oversight, and management as deemed necessary, of construction activities by coordinating with all development team members and attending job-site meetings to ensure the expeditious implementation of construction activities. Regular onsite construction monitoring is critical to the success of the project; the Co-Developer Partners must have an onsite presence during the term of construction. Any construction management, other than NBHA or investor representatives, are considered Developer overhead and may not be paid with project funds.
Facilitate Necessary Site Improvements - Pursuant to the Agreement, the Co-Developer Partners shall initiate and complete site work and infrastructure construction in collaboration with NBHA.
Implement Development Program - In accordance with the final master plan approved by NBHA, the Co-Developer Partners will develop all improvements associated with the development program.
Ownership and Asset Management:
Organize Ownership Entity - Upon completion of the master plan and its acceptance by NBHA, the selected Co-Developer Partners will be expected to organize an ownership entity(ies) and structure(s) approved by NBHA and requirements of other financing sources.
Ensure the Short- and Long-Term Viability of the Developed Projects - Co-Developer Partners shall develop and implement marketing, occupancy/re-occupancy, asset and property management plans that will ensure the short- and long-term viability of the Projects.
Select and Oversee a Property Management Firm for the rental units - The Co-Developer Partners shall include a property management firm that meets lender and/or investor qualifications and is committed to building the capacity of NBHA to assume future management responsibility for the mixed finance units.
Market and Lease-up the Rental Units - The Co-Developer Partners shall create and implement a marketing and lease-up strategy for the rental units to ensure that stabilized occupancy is achieved in compliance with all applicable financing and land use agreements.
Additionally, NBHA shall have an option and right of first refusal to acquire the Development in the event a bona fide offer, to purchase the Development, is received by the owner entity or at any time after the expiration of the LIHTC compliance period. Such right and option shall be for a purchase price equal to the minimum required pursuant to Section 42 of the Internal Revenue Code. Such rights shall be set forth in the Partnership Agreement or the Operating Agreement for each owner entity.