Best and Final Offer (BAFO)

Below are follow-up Questions & Answers from The Michaels Organization as one of two respondents to the RFQ for a Co-Developer for George Reed Village.

1. Is NHA thinking they would like to have the market rate units in the senior mid-rise building or in the townhomes.

NHA would prefer that the additional market rate units be located in the senior mid-rise building. However, this building must have no fewer than 36 1-bedroom subsidized units.

2. We see the current payment standard indicates an expense of 522,511 and $9,331 per unit (so 56 replacement units?) are we to assume that this is what the NHA is currently operating the property for?

In 2019, NHA expenses were $507,292. Any additional expenses are for expected additional NHA compliance costs. NHA’s replacement units should be no less than 54 units (current units) in total which is inclusive of the 36 1-bedroom units and the 18 scattered site rental properties which will be redeveloped on the existing site. The difference of two scattered site rental properties was sold. Based on 2019 expenses at George Reed, this puts the operating expenses at $9,394 per unit. However, we would like to include these two units in any future development of George Reed – bringing the total to 56 replacement units.

Is there anyway to break out to major expense categories especially utilities?  Finally does the property currently pay tenant utilities? 

For the 36 1-bedroom units, NHA pays for the tenant utilities of water & sewer and gas consumption.  The electric is paid by tenant.

1. How much office space OUTSIDE of the property management (our square footage calculations include management office and maintenance for the property which is basis eligible) is NHA looking for in this property?

In addition to the units, we are asking that the office space be inclusive of the following; individual office space to accommodate 3 or 4 staff members offering bathrooms, a reception area/lobby with public rest rooms, a conference room, a community room for resident engagements/activities offering a full kitchen area and an enclosed all season sun room, room for a resident operated community store, a computer lab for resident use, a storage/IT room, and a file room. In addition to the maintenance room/department, some consideration should be given to any office space that maybe needed for staff outside of NHA. Keep in mind this should not affect the retail space.

2. Assuming we can use the payment standards provided in the BAFO assumptions to ALL of the units we propose (except the market rate)?

Yes, all units, with the exception of market rates units, are expected to receive rents at payment standard.