RFQ 2017-01

Newark Housing Authority
Mixed-Use, Mixed-Financed
Affordable Housing and Commercial
Development Project

Newark Housing Authority (NHA)
313 East Main Street
Newark, DE 19711

Marene Jordan, Executive Director
(302) 366-0826
MJordan@newarkhousingauthority.net 

Issue Date: 12/18/2017
Due Date: 1/10/2018

General

The RFQ may be obtained from Ms. Marene Jordan, Executive Director by sending an email to MJordan@newarkhousingauthority.net. In the email subject line, please indicate: RFQ  2017-01 for Agency Representative. Submissions should be addressed as follows:

RFQ  2017-01  FOR AGENCY REPRESENTATIVE
Newark Housing Authority
313 East Main Street
Newark, Delaware 19711
Attention: Ms. Marene Jordan, Executive Director

Questions

Questions regarding this RFQ should be directed in writing to Ms. Marene Jordan, Executive Director, by email to MJordan@newarkhousingauthority.net, on or before 3:00 p.m. EST, Wednesday, December 27, 2017.

NHA Rights

NHA reserves the right to reject any or all proposals, to advertise for new proposals or proceed to accomplish this solicitation by any means determined to be in the best interest of NHA. NHA will evaluate proposals to determine which best satisfies the needs of the Authority and the community.

RFQ Schedule

RFQ Available                                                      12/18/2017

Final day to submit written questions            12/27/2017

Submission due date                                           1/10/2018

Award Selection date                                          1/26/2018

________________________                      ______________________________

Date                                                                              Ms. Marene Jordan

                                                                                      Executive Director

                                                                                     Newark Housing Authority

 ________________________________________________________________________

Request For Qualifications (RFQ)

RFQ 2017-01

Agency Representative

NEWARK HOUSING AUTHORITY

INVITATION

The Newark Housing Authority (NHA) invites proposals from firms or individuals to serve as Agency Representative under contract with NHA.  The Agency Representative should have experience in providing agency representative services for public housing, mixed-use, mixed-finance, multifamily developments and Housing Choice Vouchers, with demonstrated expertise in assisting PHA’s use of public housing resources leveraged with non-public housing resources, as well as structuring the ownership of the development. The Agency Representative should have demonstrated experience with interaction of housing authorities with the U.S. Department of Housing and Urban Development (HUD), the Delaware State Housing Authority (DSHA), the Delaware Department of Housing and Community Affairs, TDHCA and HUD regulations and requirements relating to public housing mixed finance developments.

AGENCY DESCRIPTION

The Newark Housing Authority (NHA) is a local housing authority, established under the provisions of the Delaware Code (Title 31, Chapter 43) approved in 1934. The Agency is located at 313 East Main Street, Newark, Delaware 19711.  The Agency’s portfolio consists of the Delaware/Independence Circle housing complex, which includes 36, one bedroom units for low and moderate income residents; 20 scattered site properties for low and moderate income tenants, consisting of 2 to 4 bedroom units located throughout the City of Newark; 209 Section 8 tenant-based Housing Choice Vouchers, and 56 affordable housing units at Alder Creek, which is currently under the management of NHA’s development partner. Alder Creek is an affordable rental community that is comprised of one, two, three and four bedroom garden-style apartments and townhomes that feature a community room, fitness center, laundry facilities and on-site management offices.  The Newark Housing Authority provides housing for 204 low and moderate income individuals and families in Newark, Delaware.

 BACKGROUND INFORMATION

The Newark Housing Authority (NHA) is inviting proposals from firms or individuals interested in serving as NHA’s Agency Representative for its new development, George Reed Village II, a mixed-use, mixed-finance complex, which is designed to combine affordable, senior and handicapped accessible housing units, as well as family units, with commercial space, and the agency’s administrative offices.  The new development is to be constructed in Newark, DE, near the George Reed Village neighborhood adjacent to the city’s downtown corridor.

The Agency Representative would serve the sole interests of NHA and in that capacity would advise the Newark Housing Authority as needed on all financing and programs of work involving the development of George Reed Village II, which is intended to improve and expand the availability of affordable housing in Newark, DE.

The Newark Housing Authority will utilize multiple debt and equity instruments including low income housing tax credits, mortgage financing, limited partnerships, HOME funds, SHIP funds and public/private collaborations as its principal forms of financing. The NHA does not guarantee any specific level of service and makes no representation or warranty as to any future level of service. The selected firm or individual will be precluded from acting as an underwriter or agent on any financing arranged by the Authority.  The firm or individual will also agree that the contract may be terminated at any time with or without cause.

The NHA Agency Representative will be expected to assist the Authority in planning an appropriately-diverse debt portfolio, structuring future debt transactions, and providing support for ongoing debt management. The Agency Representative will be a direct advisor to NHA and its development team throughout the process. The Agency Representative will work with NHA to review, comment and sometimes prepare business term sheets, mixed finance proposals, and the associated evidentiary documents, which will be submitted to HUD for review and approval.  The mixed finance proposal and related documents shall reflect the agreed upon redevelopment and financing strategies of NHA.  The work of the Agency Representative will include but is not necessarily limited to the following Scope of Services:

SCOPE OF SERVICES

General Advisory Services

The Proposer shall provide the following general, non-transaction related financial advisory services as may be requested by NHA from time to time.

1. Analysis of the market feasibility of redeveloping a combination of affordable housing units (minimum 56 units to maximum of 76 units) with commercial spaces in a high rent University of Delaware student community. Analysis of current State and Federal financing programs and processes; pros and cons of various financing program options;
2. Assistance in developing a NHA Master Development Plan for George Reed Village II, based upon the Agency’s existing conceptual site plan. The NHA Master Development Plan should incorporate the Rental Housing Needs Assessment for the City of Newark, Policy and Recommendations reported by the Urban Partners and Community Economic Development Group.
3. Evaluation of physical redevelopment plans from a financial and overall development perspective.
4. Evaluation of future housing development/redevelopment impact on the project area and adjacent areas, and what influence specific project characteristics (affordable vs. mixed, unit size, density, etc.) have on future housing development potential in these areas.
5. Development of alternative financial plans/programs/structures; develop financial models and make recommendations with respect to housing and financing proposals made for NHA and to NHA by developers, bankers, underwriters, community groups, non-profits or other stakeholders.
6. Preparation of project cash flows.
7. Preparation of applications for funding from various sources.
8. Analysis of the risks and other financial implications of terms and conditions required by investors or lenders; what current and proposed regulations must NHA take into consideration.
9. Familiarity with the regulations, requirements and procedures governing the major funding sources and housing programs, both State and Federal.
10. Be available for consultation with any persons or group interested in assisting NHA in the development of low income housing.
11. Attend meetings of NHA relating to financing activities or related activities.
12. Such other reasonably related services as may be requested by NHA.

Transactional Advisory Services

The proposer shall provide the following financial advisory services relating to new issues, MBS Sales, TBA Financing, Multi-Family transactions, Tax Credit issuance remarketing, restructuring or refunding of tax-exempt or taxable note or bond transactions (“Transactions Advisory Services”) as may be requested by NHA from time to time.

1. Assistance in identifying and negotiating with tax credit investors, lenders, underwriters, credit enhancers and other potential development partners.
2. Assistance in negotiating financial commitments and related fees.
3. Development and implementation of tax-exempt financial options.
4. Review of all transaction documents.
5. Assistance in evaluating the financial feasibility and implications of developer proposals.
6. Assistance in negotiating disposition and development agreements with developers.
7. Assistance in negotiating financial obligations and terms with developers and all possible funding sources.
8. Assistance with preparation and/or evaluation of mixed finance proposals.
9. Assistance in closing development agreements.

 REQUESTED INFORMATION

1. Describe briefly your firm’s organizational structure, primary business(es) engaged in, ownership, business affiliations, number and location of offices, and number of professional staff at each location.
2. Identify the name, address, telephone number of individual who will be responsible for the NHA account, including title, resume, area of specialization, expertise on federal and state law specific to Delaware, the DSHA and its bonds, other clients currently served, client references, and location of primary office. Provide the same information for any individuals who will serve the NHA account. Describe their experience with housing finance/development.
3. In addition to financial advisory services, describe any other services your firm can make available to NHA during an engagement. Provide the approximate contribution to the firm’s total revenue.
4. Provide a list of major clients actively served and those on a retainer basis, with a description of the services provided (noting whether on-going or transaction-specific), dates, and contract names and numbers for reference purposes. Provide a list of underwriters or agents with which your firm has collaborated with on behalf of your clients and provide contact information for reference purposes. List finance or housing related authorities that your firm is representing as a Financial Advisor.  List any significant accomplishments or contributions worth noting your firm made to the transaction.
5. Describe the frequency, variety, and size of recent housing issues or transactions for which your firm acted as advisor.
6. For each of the transactions (Single Family & Multi-Family) for which you wish to provide financial advisory services:
   1. Describe your firm’s knowledge of and expertise in the issuance of tax-exempt housing bonds and notes.
   2. Describe resources you can provide to ensure the NHA receives the highest and best consideration for its issuance.
   3. Describe how you would consider structuring NHA’s offerings, any credit-rating strategy you may consider, and any investor-marketing strategy you may consider.
   4. Describe any policy considerations you might recommend.
7. Describe any contractual relationships you may have with other firms that may be working on NHA’s accounts and/or describe any contractual relationships you may have with other Federal agencies.
8. Identify and describe any litigation, mediation, arbitration, administrative proceedings, or any investigation in which your firm is or was involved. Indicate how your firm would handle potential conflicts of interest in matters involving other clients (e.g. underwriters or developers) participating or planning to participate in a NHA financing.
9. Discuss any other considerations or factors that impact upon your ability to perform the tasks relevant to or associated with this proposal.
10. Provide proof that you are currently authorized to do business in Delaware (i.e. copy of valid Delaware business license), or indicate that you will provide such proof if selected as the successful bidder to the commencement of the contract.
11. State the fees you would charge if retained as the NHA Agency Representative. Indicate hourly rate and other terms offered.  Indicate other costs the Authority could anticipate if you are hired.  If applicable, quote fee per $1,000 bond with a maximum for various issue sizes.
12. Describe your availability and degree of accessibility to the NHA.
13. Indicate whether there is any legal action or litigation against the firm or person(s) assigned to this account. State whether HUD has debarred you or your firm.
14. Provide three (3) references with whom you have worked and the relevance of the reference to NHA. If references are outside of Delaware, also address your capability to work with Delaware statues and funding cycles of Delaware state agencies. Please indicate name, position, address, phone and fax or email addresses of the references.
15. Provide a list of professional organizations/associations in which your firm is an active member and of benefit to the NHA.
16. Indicate why you think your firm would be the best choice for Agency Representative for the Newark Housing Authority.

CRITERIA FOR SELECTION

1. Demonstrated experience in creating and evaluating mixed finance housing proposals, utilizing bonds, tax credits, HOME funds, SHIP funds, CDBG funds or CRA proceeds.
2. Ability to prepare and present best case/worst case financial scenarios for the redevelopment of affordable rental housing to the NHA Board of Commissioners, rating agencies, insurance agencies and potential investors.
3. The ability to represent the NHA without conflicts of interest on other business transactions, oversee the costs associated with each issuance of program, review preliminary and final official statements, assist in contractual negotiations with any co-developer or partner.
4. Summary of experience as Agency Representative, addressing “ services to be provided” and fee history.

EVALUATION CRITERIA

1. Qualifications: Including experience in developing asset management financial/budget models, creation of mixed income property pro forma’s, experience with tax exempt and taxable bond financing, knowledge of the legal and regulatory requirements for financing by PHA, low income tax credits, mortgage financing, qualifications of personnel assigned.
   (40 Points)

2. Capacity: Including the number and caliber of primary and support staff assigned to commence work.
   (20 Points)
3. Adequacy: Responses in terms of reasonableness of overall fee structure, completeness of response, proposed methodology in performing services, and a comprehensive approach to effectively safeguard and improve housing values.
   (25 Points)

4. Innovation: Exceptional results from new innovative or extraordinary contributions of firm or individuals, verified by references, of successfully completing mixed finance/mixed use projects.
   (15 Points) 

LETTER OF INTEREST

The Letter of Interest should discuss the proposer’s approach to the Scope of Services, and must include the proposer’s team members and identify the primary contact person.  Please include telephone number, facsimile number, and email address. The letter must be signed by an authorized principal of the proposer’s firm and include a statement that the proposal will remain valid for not less than 30 days from the date of the proposed submission.

 PROCEDURE FOR SELECTION

The Newark Housing Authority will rank and select the most responsive and responsible respondent to this RFQ.  The NHA reserves the right to require an interview from any and all proposers.

PROPOSAL SUBMISSION

Proposals should not exceed 15 pages in length, including the cover letter.  Applicant should submit 7 copies of the proposal to:

Marene Jordan, Executive Director
Newark Housing Authority
313 East Main Street
Newark, Delaware 19711

Proposals must be received by 3:00 p.m. EST on 1/10/2018.  Late proposals will not be considered and will not be opened.  Respondents are solely and entirely responsible for ensuring that submissions are received before the stated due date and time. The Authority will not be liable for any costs incurred in the preparation of the proposal.

All proposals will be considered as they are construed by the NHA. The Agency reserves the right to reject any or all proposals, and the right to request oral presentations of all or some of the proposers. After reviewing the proposals, additional information for clarification may be requested by NHA.

Questions about the RFQ should be directed to Ms. Marene Jordan, Executive Director by email to MJordan@newarkhousingauthority.net. A compilation of questions and answers will be made available by email to all responders.

CONTRACTUAL TERMS

The entity selected will be required to execute a contract containing at least the following terms and conditions:

1. Providing that all bills will be submitted in sufficient detail to allow for proper audit.
2. Providing that the Agency Representative serves at the pleasure of the Newark Housing Authority, and that services may be cancelled at any time.

NOTICE OF AWARD

This contract will be awarded to the applicant that is determined to be the most advantageous to the Newark Housing Authority, taking into consideration the price and other criteria set forth in this RFQ. Notification of award will be in the form of a written Notice of Award.

The Agency Representative Award is expected to be made on or by 1/26/2018.