25-26-32-Addendum_#4_.docx

Submittal Description Addendum No. 04

Project Name: Affordable Homeownership Development

Prepared By: Wanda House, Financial Services Manager

General Questions, Clarifications & Requirements:

Pre-Submittal Questions – Affordable Homeownership Development (RFP# 25-26-32)

Subject: Land Disposition & Title

1) Will the City transfer lots at no cost, nominal value, or appraised value?

Lots will be made available through either Fee Simple disposition, 99-year Ground Lease or other means, as described in the RFP. Final pricing and disposition terms will be negotiated with the selected developer and approved by City Council. The RFP does not establish a fixed transfer price.

2) Given the requirement for the Developer to provide proof of financing capacity, is the City willing to subordinate its interest in the land to a construction loan, or must the land be purchased outright prior to construction?

The City is open to considering subordination to a construction lender; however, any such agreement must be reviewed by the City Attorney and approved by City Council. Subordination is not guaranteed and will be evaluated on a case-by-case basis.

3) If Fee Simple, at what point will title transfer occur (Notice to Proceed, permit issuance, or Certificate of Occupancy)?

If Fee Simple disposition is utilized, title transfer timing will be negotiated and outlined in the Professional Services Contract and/or Development Agreement.

4) If utilizing a 99-year ground lease, what will the annual lease payment be: ($1/year, market value, etc)?

Ground lease payment terms will be negotiated. The RFP does not establish a fixed annual lease rate.

5) Who is responsible for closing costs, recording fees, and related transaction expenses?

Responsibility for closing costs, recording fees, and related transaction expenses will be defined in the final agreement.

6) Are Phase I environmental reports available for the identified parcels?

The City does not represent that Phase I Environmental Reports are available for all parcels. Developers are responsible for conducting independent due diligence.

7) Are utilities (water, sewer, electric) stubbed to each lot line?

Developers are responsible for verifying utility availability and connection status with Greenville Utilities Commission (GUC).

8) Who is responsible for connection fees?

Connection fees are the responsibility of the developer.

9) Are impact or permit fees waived or reduced for this initiative?

No automatic waivers are granted under this RFP. Fee adjustments, if any, would require separate City approval.

10) Do developers have to provide their own surveyor, plat plan, submitted plans to zoning and development?

Yes

11) Will identified lots be available until they are sold?

Yes, this project will be phased with the intent to continue development over the next 10 years.

12) How do we know what the purchase price of the lots are?

We recommend starting at the tax value of the lot.

13) Is the City looking to get paid for interest in reference to lot cost deferrals?

No.

14) Lot information?

GIS and planning resources are available. We can connect developers with City staff in regards to lot dimensions and setbacks if needed but do encourage developers to do their due diligence.

15) Who is the customer?

Homes are built on City land to be sold to qualified buyers, who is the customer. The City is heavily marketing the 50-in-10 program to educate potential buyers and assist with awareness.

16) Lot costs?

Lot costs are negotiable. There is no upfront land purchase. We are looking at deferred costs for the land to assist with developers. We are asking developers to include lot costs in their proposals. In the RFP, fee simples and 99 year leases.

17) How many developers is the City looking to partner with?

We do not have a set number. It will depend on submissions and lot requests. Developers are limited to 5 lots at a time.

Subject: Affordability Requirements & Compliance

18) To ensure alignment with the City, what is the current HUD 95% Median Purchase Price cap applicable to Greenville that the City will expect and enforce?

The applicable HUD 95% Median Purchase Price limit in effect at the time of sale will apply. Current limits are published annually by HUD and/or NCHFA. The current maximum at the time of this posting is $291,000 for new construction.

19) Will the sales price cap be fixed at contract execution or adjusted at time of sale?

The cap will be determined based on the HUD limits in effect at the time of sale unless otherwise specified in the contract.

20) Who is responsible for certifying buyer income eligibility?

a) Will the City inspect buyer income eligibility prior to sale? If so, who or what office will be responsible for ensuring compliance?

The City’s Community Development Division will review and certify buyer income eligibility prior to closing.

21) Are down payment assistance funds available for qualified buyers?

a) Has the City spoken with the NCHFA (North Carolina Housing Finance Agency) about this project? If so, what was the general reception?

Buyers may utilize existing City or State DPA programs for which they qualify. The RFP does not create new DPA funding. Coordination with NCHFA may occur at the buyer level.

22) If a buyer qualifies at contract execution but exceeds income limits at closing, how is that handled?

Eligibility must be verified prior to closing. If a buyer exceeds income limits prior to closing, the unit must be sold to another eligible household.

23) What is the specific structure of the resale covenant (fixed price cap, shared appreciation, or other formula)?

a) Who is responsible for drafting the specific resale covenant? If the developer’s attorney, does it need to be approved by the City? If so, who or what office will be responsible for ensuring compliance?

Affordability covenants will be recorded and structured to preserve long-term affordability of 15 years. Final terms will be approved by the City Attorney. The developer may propose a structure, subject to City approval.

24) Who will administer and enforce resale restrictions after initial sale? If covenants are filed as required, does the developer’s liability and oversight requirement end at initial sale?

The City will administer and enforce recorded affordability covenants. Developer liability ends at initial sale unless otherwise specified in the contract.

25) Will affordability covenants be required to subordinate to primary mortgage lenders?

Affordability covenants will be structured to be mortgageable and may subordinate to primary purchase money financing, subject to City approval.

26) What is Section 3 and how does it relate to this project?

Section 3 is a federal requirement when using CDBG or HOME funds that states there must be an effort to engage underemployed, low-income, or unemployed individuals from the neighborhood. While we are not planning to use federal funds for this project, but we do want to stay consistent with these requirements in case Section 3-related activities become relevant to your proposals.

27) What other assistance programs are available that may help home buyers with affordability?

The North Carolina Housing Finance Agency has two programs for $55,000 and $15,000 assistance on down payment. Most individuals who qualify for the City’s Down Payment Assistance Program will also qualify for state programs, which are dispersed based on availability of funding. There is a cap of $105,000 that is allowed to be used in combined assistance programs, and there is a required homebuyer’s class available at low or no cost to buyers. Buyers must also have at least $1,000 of their own money invested in the upfront costs of the home. Buyers may use private grants on a case-by-case basis, but they may affect their eligibility for local and state down payment assistance programs.

Subject: Financial Structure & Risk Allocation

28) Is developer profit subject to a maximum cap?

The RFP does not establish a fixed profit cap. Profit and pricing will be evaluated for reasonableness as part of proposal scoring.

29) Does the City have an expected or preferred developer margin range?

The RFP does not establish a fixed profit cap. Profit and pricing will be evaluated for reasonableness as part of proposal scoring.

30) Will the contract structure be cost-plus, fixed price, or negotiated GMP (Guaranteed Maximum Price)?

The Professional Services Contract structure will be negotiated with the selected developer.

31) How will change orders be handled, particularly for material price escalation?

Change order procedures will be defined in the final contract. Documentation and justification will be required.

32) Referencing Question 2, if the City will not subordinate, then will the City provide construction draw funding, or is this entirely developer-financed?

The City does not anticipate providing construction draw financing.

33) Asking again for clarity, if applicable, will the City subordinate its interest to a construction lender?

The City is open to considering subordination to a construction lender; however, any such agreement must be reviewed by the City Attorney and approved by City Council. Subordination is not guaranteed and will be evaluated on a case-by-case basis.

34) Is the 12-month completion requirement per individual lot or per development phase?

The 12-month requirement applies per contract, beginning at contract execution, unless otherwise agreed in writing.

35) Are extensions permitted for weather delays, supply chain issues, or financing delays?

Extensions may be granted for force majeure events or other documented circumstances beyond the developer’s control, subject to City approval.

36) Market risk?

Developers assume standard risk. The City is looking to mitigate through land assistance, outreach, and buyer support.

Subject: Site Development & Infrastructure

37) Are sidewalk installation and curb/gutter replacement reimbursable as public improvements?

a) What particular zoning ordinance or area of UDO applies to the sidewalk and curb/gutter requirements?

As stated in the RFP, developers are responsible for identified site improvements. Reimbursement is not guaranteed.

38) What does UDO stand for?

UDO stands for Unified Development Ordinance. We have had some recent changes, for example – the minimum lot size. There may some opportunities where lots that would have previously been considered nonconforming would now be considered acceptable. The City is hosting several information sessions to discuss these changes. They are open to the public and last about 45 minutes each and may also be available online.

39) If proposals are due before the next UDO meeting happens, will that impact potential designs?

It could, but likely not significantly. If you have any concerns about potential impacts to designs, City staff can make these resources available to you before the proposal due date.

40) Do you foresee setbacks changing?

There may be some changes in the Unified Development Ordinance. You can connect with Chantae Gooby (252-329-4507) or Bryan Jones (252-329-4608) in Planning as the content area experts

41) Are street trees required under City standards?

Developers must comply with applicable UDO landscaping requirements.

42) Is stormwater managed per lot or through a broader area plan?

Stormwater must comply with City engineering and stormwater regulations. Developers are responsible for determining requirements per parcel.

43) What are the setback, lot coverage, and impervious surface limitations for the R6 parcels?

Developers must comply with the City’s UDO for R6 zoning standards (setbacks, lot coverage, impervious limits).

44) Are there architectural compatibility or design guidelines specific to West Greenville?

While no separate design manual is issued, development must be architecturally compatible with surrounding neighborhood context, as stated in the RFP.

45) Are soil studies available for the listed parcels?

The City does not guarantee availability of soil studies. Developers are responsible for due diligence.

46) Will the City rezone lots for most efficient use? If so, will the rezoning be subject to a Council meeting or can it be handled by Staff?

Rezoning requests may be submitted through the standard City rezoning process and are subject to Planning and Zoning Commission and City Council approval.

47) On larger parcels, such as parcel 11698, will the City rezone into single-family and subdivide into smaller parcels, or is the City looking for a solution that matches current zoning?

Rezoning requests may be submitted through the standard City rezoning process and are subject to Planning Commission and City Council approval.

48) Are garages required under the 50-in-10 Program?

Garages are not required for homes constructed under the 50-in-10 program. Parking and driveway layout should comply with the standards outlined in the Unified Development Ordinance (UDO).

49) Will the City require use of specific home designs, such as those that have already been completed with previous projects?

No. There is some creative freedom that allows developers to adjust to their cost model. Should developers wish to use them, the city has historically used several designs from the TightLines Designs architecture firm in Raleigh. Plans from our previous projects include:

Julia II Accessible Benson II Benson II Mirrored We have also used Craftsman designs 142-1041 (1300 sq ft) and 142-1054 (1375 sq ft).

50) Are there project-specific requirements for foundations, such as having a crawl space or building on a raised slab?

No, there are no specific requirements. Some of the projects we completed previously in these neighborhoods were on raised slabs.

51) Are any of the City-identified lots in a flood zone?

No.

52) Is there a square footage requirement for homes built under the 50-in-10 program?

Previous constructions have been in the 1200-1400 sq ft range.

53) Are there bedroom/bathroom minimums?

The minimum is 3 bedrooms and 2 bathrooms per home.

Subject: MWBE Requirements

54) Are the 4% MBE and 4% WBE participation goals mandatory or subject to good faith effort documentation?

These are aspirational goals requiring documented Good Faith Efforts.

55) Will the City provide a current list of HUB-certified vendors?

Developers should utilize the North Carolina HUB database.

56) What reporting frequency will be required for MWBE participation tracking?

MWBE reporting is required with each payment application.

Subject: Marketing & Sales Process

57) Will the City maintain or provide a qualified buyer interest list?

The City will continue provide general outreach assistance but does not guarantee a pre-qualified buyer list.

58) Will the City advertise these properties within City offices, including Schools, Police Department, Education Department, Administration offices, and all other supporting positions?

The City may assist with outreach but does not guarantee specific internal advertising placements.

59) Is there a first-look preference for current West Greenville residents?

There is not preference established for prospective buyers outside of income eligibility.

60) Are buyers required to complete homebuyer education prior to purchase?

Homebuyer education may be required if buyers utilize DPA or subsidy programs.

61) Are pre-sales permitted prior to construction start?

Pre-sales are permitted, subject to compliance requirements.

62) Will the City require marketing material approval prior to public release?

Marketing materials referencing City participation must be approved prior to release. Marketing efforts should be aligned with Fair Housing practices and should not utilize the City logo without approval.

63) What does the City’s previous experience with neighborhood development look like as it relates to the 50-in-10 program?

Between 2020 and 2024, we sold 10 homes. Prior to 2020, the City has successfully developed, with partners, full subdivisions such as Countryside Estates.

Subject: Construction & Energy Standards

64) Is there a required HERS rating or specific energy performance target? Are cost-efficient energy improvements sufficient, or will a third-party rater be required?

No specific HERS score is mandated. Homes must meet local code and applicable energy efficiency standards.

65) Are electrification or solar-ready requirements anticipated?

No current requirement; proposals incorporating sustainable features are encouraged.

66) Are there minimum durability specifications (roofing, siding, HVAC, etc.) beyond code requirements?

Warranty requirements are outlined in the RFP. Additional specifications will comply with local code.

67) Are any ADA requirements mandatory for the project, or only on a case-by-case basis?

Homes must comply with applicable accessibility laws. No blanket ADA mandate is imposed.

Subject: Construction Training Program Integration

68) Are graduates from the Construction Training Program required to be hired or encouraged as a preference?

Developers are encouraged, but not required, to hire program graduates.

69) Is any wage subsidy or workforce support funding available?

No wage subsidy is currently attached to this RFP.

70) Who carries workers’ compensation coverage for trainees during placement?

Insurance responsibilities will align with standard contractor and employer insurance requirements under North Carolina law.

71) If trainees are used, who carries general liability insurance for those individuals while on site?

Insurance responsibilities will align with standard contractor and employer insurance requirements under North Carolina law.

Subject: Program Expansion & Long-Term Vision

72) What is a covenant, and who is responsible for it?

A covenant is a legal restriction recorded with the deed that requires the home to remain affordable for approximately 15–20 years. Its purpose is to discourage quick resale for profit and preserve long-term affordability. The City will prepare and provide the covenant language. The obligation primarily applies to the homeowner (the buyer), not the developer, and transfers with the property to future owners during the affordability period and/or requires repayment of any subsidies.

73) If performance goals are met, is the City open to expanding lot allocation beyond the initial five parcels?

The initial scope is up to five lots. Future expansion may be considered based on performance and Council approval.

74) How does the City define “success” for this initiative (timeline, design quality, affordability mix, etc.)?

Success will be measured by:

· Timely delivery

· Affordability compliance

· Quality construction

· Neighborhood compatibility

· Effective marketing

· Local workforce engagement

75) Is there additional infrastructure investment, (City, State, or otherwise) known to be planned or in planning within the West Greenville revitalization area that may impact development feasibility?

The City continues to evaluate infrastructure improvements in West Greenville; no specific additional funding is guaranteed under this RFP.

76) Is there a website or way to determine the actual lot dimensions and building setbacks for each parcel?

The RFP identifies the parcels as vacant and City-owned and provides a list of available lots; however, the RFP does not include surveys, lot dimensions, or setback information.

It is the responsibility of the developer to conduct all necessary due diligence related to:

· Lot dimensions

· Zoning classification

· Setbacks

· Utility access and connection status

· Grading and other site conditions Developers may obtain parcel information through publicly available resources, including:

· City of Greenville GIS mapping system

· City of Greenville Planning & Development Services Department

· Pitt County Register of Deeds (recorded plats) Compliance with the City’s Unified Development Ordinance (UDO) is required.

77) Who is the actual “customer”? Are developers building on City-owned land with their own construction funds and then marketing and selling the homes? What is included in the lot cost basis? Are developers required to purchase or reimburse the City for the lots?

The ultimate end user/customer is the income-qualified homebuyer.

As outlined in the RFP:

· Homes will be constructed on City-owned land.

· Disposition of the land may occur through either Fee Simple Sale (“AS IS,” subject to performance and affordability requirements) or a 99-year Ground Lease.

· Developers are responsible for design, financing, construction, marketing, and sale of the homes.

· A licensed real estate professional must be included on the development team.

· Sales must comply with HUD 95% Median Purchase Price limits and applicable AMI requirements.

The RFP does not establish a fixed lot price, donation structure, reimbursement requirement, or automatic transfer terms. Final land disposition terms, including lot pricing (if applicable), will be negotiated with the selected developer and approved by City Council.

78) Does the builder/developer assume all market risk? What happens if the homes do not sell?

The RFP does not provide for guaranteed purchase by the City, buy-back provisions, or shared market risk mechanisms.

Developers are required to demonstrate:

· Financial capacity

· A detailed marketing strategy

· Experience in marketing speculative and/or pre-sale homes

· Ability to complete construction and sale within the required timeframe Absent alternative provisions negotiated in the Professional Services Contract and/or Development Agreement, the developer assumes the market risk associated with construction and sale of the homes.

79) If bank financing is required, will the City subordinate and allow a lender to hold first lien position on the land?

The RFP does not establish automatic subordination or lien priority terms.

Developers must demonstrate financing capacity and ensure that properties are conveyed free of material and/or workman’s liens at closing.

If subordination or leasehold mortgage rights are requested by a lender, such terms may be considered but would require review by the City Attorney and approval by City Council. Subordination is not guaranteed and will be evaluated on a case-by-case basis as part of contract negotiations.

80) If the houses are built and now on the market, but for some unforeseen reason, like the housing market or economy drops, will the City assist the Builder/Developer in a situation like this? And if so, in what ways would that assistance be provided?

The builder maintains risk, however, having shared interest in the success of the project, the City will continue to support and incentivize affordable housing in a manner that meets community needs within its ability.

81) Can you elaborate on the Long Term Ground Lease? Is this something the developer is responsible for?

The developer is responsible for proposing a disposition strategy in the formal proposal.

82) On Page 7 of the RFP, under Proposal requirements, section B, could you explain the reasoning in providing resumes of our subcontractors that we'd be using? At this point in the project, said subcontractors may not be fully identified or subjected to change.

Please provide resumes for any already-identified subcontractors.

83) What all is involved for a realtor to be certified for the program and how long does it usually take to be approved as a City approved realtor?

The City will offer mandatory training pertinent to Affordable Housing and standards for this project. Dates and times will be made available.

84) Does the 20 page limit on your proposal apply if you are proposing builds on five different lots or is it 20 pages per proposed build ? If you’re proposing to Bill five different houses on five different lots it could potentially go over 20 pages to do it properly. I don’t know this for sure but just thinking ahead.

The City hereby removes the twenty (20) page limitation previously stated in the Request for Proposals.

Proposers are no longer restricted to a maximum page count. Respondents may submit proposals of any length necessary to fully address the requirements of the RFP, particularly when proposing multiple builds across multiple lots.

Proposers are still encouraged to present information in a clear, organized, and concise manner to facilitate efficient review by the evaluation committee.

All other terms, conditions, and requirements of the RFP remain unchanged.

85) When is the due date for proposals?

Our new due date for proposals is February 27, 2026. It was pushed back from Feb 13, 2026 due to recent inclement weather.

86) Requested information about the UDO to be implemented March 1, 2026 Before the March 1st implementation of the UDO, the City is hosting a series of public information sessions. Sessions will be held for specialized professionals, including design teams, developers, landscapers, and signage professionals, as well as the general public. Below is a list of meeting dates and times:

Meetings for design professionals, developers, and landscapers (UDO and Land Development Manual)

· February 9, 2026, at 6:00 p.m. at City Hall, 200 West Fifth Street

· February 20, 2026, at 9:00 a.m. at City Hall, 200 West Fifth Street Meetings for sign companies (new sign/lighting regulations)

· February 10, 2026, at 6:00 p.m. at City Hall, 200 West Fifth Street

· February 17, 2026, at 2:00 p.m. at City Hall, 200 West Fifth Street General public (zoning districts, table of uses, housing, lighting, vegetation/landscaping, and conditional zoning)

· February 11, 2026, at 10:00 a.m. at Carver Library, 618 West 14th Avenue

· February 16, 2026, at 6:00 p.m. at South Greenville Recreation Center, 851 Howell Street

· February 18, 2026, at 9:00 a.m. at the Barnes-Ebron-Taft Community Building, 401 Greenfield Boulevard

· February 18, 2026, at 6:00 p.m. at the Barnes-Ebron-Taft Community Building, 401 Greenfield Boulevard

· February 24, 2026, at 9:00 a.m. at Jaycee Park, 2000 Cedar Lane

More information regarding the UDO can be found here: https://www.greenvillenc.gov/605/Unified-Development-Ordinance

87) The City has received a request for clarification regarding the reference requirements outlined in the RFP.

1. Homeowner References The RFP requires three (3) homeowner references for homeowners who have lived in a home constructed by the developer for more than one (1) year.

There is no separate homeowner reference form. Homeowner references shall be submitted in the form of a signed letter of reference from the homeowner. The letter should include:

· Homeowner name

· Property address (if applicable)

· Length of time in the home

· Description of experience working with the developer

· Overall satisfaction with the construction quality and warranty responsiveness Homeowner reference letters may be included within the proposer’s submission package.

1. Business Reference Forms – Deadline Clarification Attachment F (Business Reference Form) currently lists a return deadline of February 13, 2026. This date is hereby revised.

All business reference forms must be returned directly to the City no later than:

February 27, 2026 at 9:00 AM EST (Proposal Due Date).

All other terms and conditions of the RFP remain unchanged

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