12-3.1 SOW Development Initiative Consulting.docx

C. SCOPE OF WORK

FOR

DEVELOPMENT INITIATIVE CONSULTING SERVICES SOLICITATION NUMBER P-005459

Introduction

PHA is seeking proposals from qualified firms to provide technical assistance to support its public housing and affiliated real estate development efforts. All PHA development efforts are subject to applicable federal, state, and local laws and regulations.

Ongoing changes in laws and regulations have provided new opportunities and challenges for public housing development. Therefore, it is essential that PHA avail itself of the advice of experienced consultants, whose knowledge of current laws and regulations, as well as practical experience in all aspects of the development and revitalization process, allow for an efficient and effective development process.

Project Background

PHA is requesting proposals from qualified individuals or firms ("Firms") interested in providing strategic technical assistance in connection with housing and economic development initiatives. PHA intends to partner with qualified non-profit and for-profit developers to construct, rehabilitate, acquire and/or preserve over 20,000 units of affordable rental housing, some of which may be public housing units, over the next five year period.

Under PHA's direction the successful Firm will be responsible for providing advisory services related to preparation of and assistance in preparation of Low-Income Housing Tax Credit applications; assistance in securing financing; and advising PHA on development options for achieving its housing development goals.

PHA may award multiple professional services contracts for a period of up to five (5) years. The successful Firms will perform the services described in this Scope of Work for the specified contract period.

Scope of Services

All requests for services to be performed under the scope of this contract will be made with a written task order, signed and executed in agreement by both parties, prior to the commencement of any billable activity. A task order will specify the task to be completed, the required outcome or deliverables to result, and the number of hours expected to complete the task. This contract may contain one or multiple task orders. Professional Services expected to be needed are outlines below:

1. Professional Services: The qualified Firms shall provide professional services on a Task Order Basis on behalf of PHA as follows:

a. Structuring real estate transactions;

b. Drafting applications including, but not limited to, the following programs: Low-Income Housing Tax Credit (LIHTC), Historic Tax Credits, Rental Assistance Demonstration (RAD), New Markets Tax Credits (NMTC), Choice Neighborhoods, Renewable Energy and/or Green Tax Credits;

c. Documenting and negotiating terms of the transaction;

d. Conducting due diligence and securing required approvals to achieve financial closing;

e. Providing post-closing advice and assistance on a variety of topics, including but not limited to: periodic draw requests, equity installments, budget revisions, task order modifications, cost certification/audit;

f. Assisting PHA in purchasing or acquiring existing LIHTC or other subsidized units and developments;

g. Unwinding of existing LIHTC limited partnerships upon termination of compliance period;

h. Assisting PHA in developing policies and procedures to meet funding program requirements;

i. Providing advice and assistance for third-party owned/managed transactions;

j. Assisting with other development activities as outlined herein.

2. Tasks and Deliverables: Project Tasks may take place in one or many Phases of the development process. Firms are expected to be undertake task as may be required. The selected firm(s) shall provide/develop the following:

Phase 1: Preliminary Planning Tasks and Deliverables:

a. Prepare a written summary of market demand for rental and homeownership projects based on a review of recent market conditions, as well as other information obtained through discussions held with local industry representatives, City Officials, etc. Product: Written report to PHA concerning impact of findings on existing proposal.

b. Prepare a Request for Proposals ("RFP") for formal market study as requested by PHA; develop list of prospective bidders, distribute RFP, assist in selecting a consultant, and review and comment upon results. Product: RFP followed by a completed market study.

c. Create an initial operating Pro Forma (rent and expenses). Income shall be determined through a detailed analysis of PHA Annual Expense Levels (AEL), or similar standard; for any non-public housing units, rents and income levels shall be determined through the market study. Expenses shall be based upon an analysis of comparable units and developments. Product: Operating Pro Forma with appropriate back-up data.

d. Prepare a preliminary sources and uses budget identifying various project phases financing source and specific funding requirements. Identify potential equity and debt sources, their requirements, and recommended strategy for achieving these requirements. Product: Written report to PHA including financial analysis.

e. Determine various methods for obtaining required tax credits. Meet with Pennsylvania Housing Finance Agency ("PHFA") and City Officials, as requested by PHA, to discuss proposed developments, timeframe for funding requirements, and the likelihood of receiving funding. Review Qualified Allocation Plan ("QAP") and make recommendations. Product: Written summary of results of meetings and approach to obtaining tax credits.

f. Meet with appropriate City and State Officials to determine availability of CDBG, HOME, City Capital funds and State Capital funds as possible sources. Develop preliminary schedule indicating potential funding sources, associated requirements and relevant time frames. Product: Written report to PHA.

g. Review current resident, waiting list, and other appropriate information to determine housing needs of existing residents, average incomes and rents, and relocation needs. Advise as to additional information requirements and report findings and make recommendations. Product: Written report to PHA concerning existing and/or future residents.

h. Develop written proposals for homeownership and rent-to-own programs. Product: Initial specification for homeownership and rent-to-own programs.

i. Develop an organizational structure for the entities recommended to implement planned development. Identify roles, responsibilities, and contractual arrangements. Identify any additional development team roles and suggest strategy for procurement. Meet with PHA representatives to discuss proposed organizational structure. Product: Table of Organizations and explanatory memorandum.

j. Meet with residents, neighborhood based business organizations, local brokers, appropriate City and State Officials and others involved in economic development, as requested by PHA, in order to determine the perceived needs of the community. Firm may also identify available resources and assist in the creation and ongoing activities of a planning committee. Product: Written analysis of findings to PHA.

k. Review market analysis and meet with appropriate PHA staff so that a determination of need may be made. Product: Written report to PHA.

l. Review proposed site map and layout with relevant staff and consultants to determine optimal location of various development components. Product: Site map recommendations memorandum.

m. Develop a Request for Qualifications ("RFQ") for business-consulting firm(s) to undertake a detailed market analysis culminating with a strategy for pursuing mixed use interests at the site. Product: RFQ.

n. Develop a public relations, community notification and marketing plan. Product: Communications plan submitted to PHA

o. Undertake other tasks as reasonably related to the activities set forth herein.

Phase 2: Underwriting, Due Diligence & Financial Closing Services

The precise deliverables for the Phase 2 Tasks are dependent on the results of the Phase 1 Preliminary Planning Phase and thus will be developed by the Firm and the PHA during the performance of the Phase 1 Tasks. The following is a general description of the tasks the PHA envisions being performed during Phase 2. At the request of PHA, the selected firm may be required to contract with architectural, engineering, surveyor, cost estimator, construction management, and other appropriate firm(s), to implement the Revitalization Plan. These tasks may be amended after the Preliminary Planning Phase to reflect the specific results of the planning process.

a. Monitoring of development costs and analyzing budget to determine variances;

b. Preparing monthly financial statements for various entities;

c. Developing projections of tax credit;

d. Revising financial Pro Formas as needed;

e. Independent verification to determine reasonableness of estimates of proposed contracts and budgets.

f. Preparation and filing of tax credit applications

g. Coordinate the requirements of the various funding sources

h. Negotiate terms for equity and debt commitments

i. Provide advice and assistance for business decisions required for preparation of legal documentation for closing on equity and debt commitments.

j. Provide guidance to PHA on organizational structures to implement the financial requirements of the revitalization plan.

k. Prepare financial component of submissions to HUD, PHFA and other required funders.

l. Undertake other tasks as reasonably related to the activities set forth herein.

Phase 3: Post-Closing Services

a. Provide post-closing advice and assistance on a variety of topics, including but not limited to: periodic draw requests, equity installments, budget revisions, task order modifications, cost certification/audit;

b. Assisting with other development activities as outlined herein.

Employees

Proposer must at a minimum provide at least the following information related to the principals and staffs professional and technical competence:

(a) Key Personnel.

(b) Experience of Key Personnel.

(c) A staffing plan on who will be responsible for the tasks identified in Scope of Work.

Resumes must be provided that succinctly summarize the experience and qualifications of the proposed Key Personnel who will actually perform the work:

The Proposer shall assign only competent personnel in sufficient number(s) to perform the required services efficiently and in a manner satisfactory to PHA. If the Contract Administrator or designee notifies the Contractor in writing that any person assigned to perform work under this contract is incompetent, disorderly, or otherwise unsatisfactory as solely determined by PHA, such person shall not again be assigned in the execution of this contract without the written consent of the Contract Administrator. The Contractor will be held responsible for the actions of their employees while on/in PHA premises.

Supervision The Contractor agrees to work closely with the PHA to ensure proper management of the work. Contractor must ensure effective supervision and work with PHA to proactively resolve any potential service issues.

Submission Format and Requirements

Offers and modifications thereof shall be submitted electronically in Bonfire (https://pha.bonfirehub.com/portal/?tab=openOpportunities)

All submissions in response to this RFP must be formatted in accordance with the requested information within Bonfire.

Proposals must contain the following information, in order for the PHA to best evaluate the proposal:

1. Show evidence of previous experience (both firm and staff).

2. Show evidence of past performance (both firm and staff).

3. Show evidence of proposed approach for providing services.

4. Show evidence of Staff time and resources dedicated to perform the services under this solicitation (organizational capacity and availability).

5. Show evidence of MBE/WBE and Section 3 participation.

6. Completed pricing sheet and completed sections H thru K.

Cost Proposal

Please provide pricing for each employee’s classification and list them on the page PRICING SHEET of this RFP. Cost proposals submitted in any other format will be deemed non responsive and not be considered.

All proposers shall submit rates for each job classification on page PRICING SHEET. Each job classification has three (3) rates:

· Direct labor cost- hourly rate

· Overhead Rate (Audited)- All proposers shall include in their proposal the overhead rate that will be charged. All clerical support shall be in the overhead rate.

· Profit Rate- rate of profit per labor hour

The sum of the rates equals the billing rate for each classification. Once a contract has been executed with the successful proposer, billing rates shall remain throughout the duration of the contract.

Meetings will be billed for only the duration of the meeting at the stated hourly rate(s).

Submission Evaluation

The following factors will be utilized by the evaluation committee appointed by PHA to evaluate each submission received; award of points for each listed factor will be based upon the documentation that the submitter provides within his/her submission:

Evaluation Criteria

1. Proposal Content and Letter of Interest - The quality of the proposal and the degree to which it demonstrates the respondent’s full understanding of and the ability to perform the Services to be rendered;

2. Previous Experience - Previous experience in providing development and real estate financial consulting services. Previous experience with and understanding of HUD Public Housing programs, applicable HUD regulations, including but not limited to mixed-finance proposals. Previous experience with and understanding of layered financing, including but not limited to LIHTC's. Experience with the integration of HUD regulations and programs with real estate development. Actual familiarity with housing authority finances and budgets; and

3. Organizational Structure, Profile of Principals, Key Staff - The quality of the respondent’s management, reputation, and references; The terms under which the respondent will commit its personnel, without transfers and changes, the identification of the member of the respondent’s staff who will have primary responsibility to perform and/or supervise and coordinate the performance of the Services, and the demonstration of sufficient staffing capacity to execute the Services in an efficient and timely manner;

4. LIHTC/RAD/Mixed-Finance and PIH Experience - The respondent’s demonstration of experience in providing services similar to the Scope of Services described herein, including the respondent’s demonstrated experience and/or expertise with specific geographic area(s) within City and multiple asset class(es) such as civic, healthcare, hospitality, educational, recreational facilities, transferrable development rights, etc.;

5. MBE, WBE, Section 3

PRICING SHEET

NAME OF OFFEROR

TITLE OF PROPOSAL

HOME OFFICE ADDRESS

BREAKDOWN OF COST ELEMENTS

Rate

TOTAL EST COST

per Hour (Billing Rate)

TOTAL DIRECT LABOR

C-7