Bethlehem Housing Authority Request for Proposals

Project-Based Vouchers for Affordable New Construction Housing Development issued: June 17, 2026

PROPOSALS ARE DUE NO LATER THAN 5:00PM EST

Wednesday, July 1, 2026

LATE PROPOSALS WILL NOT BE ACCEPTED

REQUEST FOR PROPOSALS

AFFORDABLE NEW CONSTRUCTION HOUSING DEVELOPMENT

Issue Date: 6/17/2026 Due Date: 7/1/2026

Overview:

The Bethlehem Housing Authority (“BHA”) is soliciting competitive proposals from qualified developers to provide newly constructed housing units assisted through the Project-Based Voucher Program (“PBV Program”) authorized under Section 8 of the U.S. Housing Act of 1937 and implemented in accordance with 24 CFR Part 983.

BHA intends to award up to 25 PBVs per project, subject to funding availability, compliance with HUD regulations, and the competitiveness of proposals submitted.

Submission Instructions:

All proposals must be received no later than 5:00 PM EST on July 1, 2026.

Applications must be submitted electronically via PennBid at https://pennbid.bonfirehub.com in strict accordance with the RFP. Interested parties may secure specifications and bid forms at no cost on PennBid at https://pennbid.bonfirehub.com Questions regarding this solicitation shall be submitted via the “Ask a Question” feature within PennBid. All questions must be received by June 24, 2026.

I. Project Requirements

A. Program Purpose and Scope:

Eligible projects will be new construction multi-family affordable rental housing project(s) that serve low-income, very low-income and extremely low- income households in the City of Bethlehem. BHA seeks experienced developers capable of delivering high-quality new construction affordable housing. Successful proposals will demonstrate the developer’s experience with the type, size, scale and complexity of housing proposed.

As a result of this RFP, awards may be funded to either a single or multiple projects. BHA reserves the right to determine the best mix of resources for a proposed project.

B. BHA Strategic Goals:

Successful applications will demonstrate how their project can advance BHA’s development goals. These include:

1. Increase opportunities for affordable housing.

2. De-concentration of low-income housing.

3. Increase housing opportunities for households experiencing homelessness or at risk of homelessness and/or units serving households at or below 30% of Area Median Income (AMI).

4. Development of housing that increases access to community services (e.g. health care, social services, transportation).

5. Leverage investments made or planned by the City of Bethlehem or BHA.

Consistent with an emphasis on deconcentrating affordable housing, BHA will prioritize projects providing mixed-income rental housing. Neighborhood-appropriate mixed-use development is encouraged. Redevelopment of under-utilized land will be prioritized.

II. Project Developer BHA seeks developers with demonstrated capacity to successfully finance, construct and operate projects of comparable type, size, scale and complexity. Developers must demonstrate the ability to:

1. Deliver projects on time and within the forecasted budget; and

2. Work with the public sector in public/private real estate development projects; and

3. Demonstrate adequate staffing and capacity given other pipeline commitments; and

4. Successfully utilize Project-Based Vouchers and comply with Fair Housing and all federal regulations; and

5. Implement a relocation plan, if applicable, per the necessary rules and regulations based on funding requirements; and

6. Operate the project in compliance with funding requirements throughout the period of affordability.

All developers must be in good financial, legal, and organizational standing.

III. Description of Project-Based Voucher Program

A. Overview Project-based vouchers (PBV) are an optional component of the Housing Choice Voucher (HCV) program that Public Housing Authorities may choose to implement. Subject to Federal requirements and in accordance with locally developed guidelines, rental subsidies are attached to specific rental units and, when the tenants of the units move, the rental subsidies remain with the units. Subsidies are used to pay the owner a portion of the monthly rent on behalf of the eligible households and participating tenants generally pay 30% of their income toward their housing costs.

The BHA’s Project Based Voucher program is designed to conform to the PBV program regulations found at 24 CFR Part 983. Owners must agree to comply with all federal Section 8 PBV regulations and requirements. The Project-Based Voucher program does not provide capital funds for acquisition or construction. Rather it provides the owners with contract rental assistance, which the owner is able to use to secure the necessary financing. All financing of project costs and operating expenses will be the responsibility of the owner.

B. Minimum Requirements:

BHA is accepting PBV proposals for up to 25 (twenty-five) vouchers that can meet the following minimum requirements:

1. Expand the affordable housing stock in the City of Bethlehem; and

2. Serve families at or below 50% of the Area Median Income (AMI); and

3. Demonstrate evidence of site control; and

4. Demonstrate the capacity to supply newly constructed units available for occupancy not later than January, 2028.

C. AHAP and HAP Contract Terms:

Through the PBV program, BHA will enter into a Housing Assistance Payment (HAP) contract with selected property owner(s) for an initial term of no less than one year and up to 20 years. The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case basis.

No construction or other HUD choice-limiting activities may begin until all required federal reviews, including the environmental review and Subsidy Layering Review (if applicable), are completed and the project has received written clearance from the Responsible Entity and/or HUD. The HAP contract will not be executed until construction is complete and the units have passed inspection and all PBV requirements.

BHA may reduce the number of PBV units under the AHAP if units fail to meet rent reasonableness, site standards, or other eligibility thresholds following detailed review.

Any time before expiration of the HAP contract, BHA may extend the term of the contract for an additional term of up to 15 years if BHA determines an extension is appropriate to continue providing affordable housing for low-income families or to expand housing opportunities.

Housing assistance subsidies will be provided while eligible families occupy the rental housing units and the units meet other program standards. BHA will maintain the waiting list and refer program participants to the project owner in order to fill vacant units. BHA occupancy standards will determine the appropriate unit size for the family size and composition.

D. Limitations on Units and Awards Certain types of housing units and/or developments are not eligible for PBV assistance [24 CFR 983.53] including:

• Shared housing;

• Units on the grounds of a penal, reformatory, medical, mental, or similar public or private institution;

• College or other school dormitories;

• Nursing homes or facilities providing continuous psychiatric, medical, nursing service, board and care, or intermediate care;

• Units that are owned or controlled by an educational institution or its affiliate and designed for occupancy by the students of the institution;

• Manufactured homes;

• Cooperative housing;

• Transitional housing;

• Owner-occupied housing units;

• Units occupied by an ineligible family at the time of proposal submission or prior to execution of the Housing Assistance Payment (HAP) contract.

Additionally, BHA may not attach or pay PBV assistance to units in any type of subsidized housing prohibited at (24 CFR 983.54), including units with any other duplicative federal, state, or local rental subsidy, as determined by HUD or BHA in accordance with HUD requirements.

The number of PBV assisted units in the project cannot exceed the greater of 25 units or 25 percent of the total number of dwelling units in the project, except:

• units that are exclusively for elderly families,

• units that are for households eligible for supportive services available to all families receiving PBV assistance in the project (although the family is not required to accept or receive such services).

If an exception applies, the cap is the greater of 25 units or 40 percent of the units in the project.

E. Site Selection and Neighborhood Standards [24 CFR 983.57]

Projects must demonstrate proximity to community amenities and services that support long-term housing stability, including access to public transit, grocery options, healthcare providers, schools, and employment centers. Proposals should address how the location improves residents’ access to opportunity, consistent with HUD de-concentration goals.

Sites may not be located in areas of high adverse environmental exposure unless mitigation measures are incorporated and disclosed. Proposals must identify any known site hazards and regulatory steps required.

It is goal of the BHA to select sites for PBV housing that provide for deconcentrating poverty and expanding housing and economic opportunities. In complying with this goal, BHA will limit approval of sites for PBV housing in census tracts that have poverty concentrations of 20 percent or more.

BHA will consider requests for exceptions to the 20 percent standard where BHA determines that the PBV assistance will complement other local redevelopment activities designed to deconcentrate poverty and expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent, such as development sites located in:

• A HUD- designated Enterprise Zone, Economic Community, or Renewal Community;

• A census tract where the concentration of assisted units will be or has decreased as a result of public housing demolition and HOPE VI redevelopment;

• A census tract undergoing significant revitalization as a result of state, local, or federal dollars invested in the area;

• A census tract where new market rate units are being developed and the market rate units will positively impact the poverty rate in the area;

• A census tract where there has been an overall decline in the poverty rate within the past five years; or

• A census tract where there are meaningful opportunities for educational and economic advancement.

Additionally, the site must be consistent with BHA’s Administrative Plan. The plan is available on-line through the website: https://www.bethlehemhousing.org/BHA/files/AdminPlan-BHA-02.pdf

F. Project-Based Voucher Contract Rents For each unit type and size, the proposed contract rent must be provided as well as a breakdown of the utilities to be paid by the tenant and by the owner.

BHA’s goal is to provide as many households with vouchers as possible. Given the budget limitations of the program, BHA must implement policies that control its HAP expenditures. It is expected that owners will propose unit rents that will fit within the FMR’s. Requests for contract rents above FMR should be an exception and not the norm for a request.

The rent to owner including utility allowances must not exceed the lowest of:

• An amount determined by BHA, not to exceed 110 percent of Fair Market Rent (FMR). The contract rent is determined by the applicable FMR minus the applicable utility allowance; and

• The contract rent must be rent reasonable.

IV. Project Selection and Scoring Criteria:

There are two types of criteria:

· Threshold Criteria, each of which must be met for the application to proceed to competitive scoring; and

· Scoring Criteria, which will be used to evaluate complete, eligible proposals for final selection.

A. Threshold Criteria:

Threshold Requirements establish eligibility prior to scoring. Proposals failing any threshold item will not advance to evaluation.

Each of the following are mandatory to proceed to competitive scoring:

1. All required application materials are included in the submission.

2. Project meets eligibility criteria – new construction of affordable housing, located in the City of Bethlehem.

3. Evidence of enforceable site control.

4. Development team members must be in good standing with BHA, with no history of default, material non-compliance, or termination for cause under BHA-administered programs.

5. No member of the development team may be debarred or suspended from federal programs.

6. The developer (and affiliated ownership entities) must be current on all real estate taxes on the site and in the jurisdiction. The developer must certify that they are current on all City of Bethlehem taxes and provide verification upon request.

7. The site must meet the following HUD-required site and neighborhood standards:

a. adequate in size, exposure, and contour to accommodate the number and type of units proposed;

b. adequate utilities and streets available to service the site;

c. promote greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons;

d. not seriously detrimental to family life or in which substandard dwellings or other undesirable conditions predominate;

e. accessible to social, recreational, educational, commercial and health facilities and services equivalent to those found in neighborhoods consisting largely of unassisted similar units;

f. accessible to places of employment via public transportation or private automobile without excessive travel time or cost (unless housing is exclusively for elderly).

B. Scoring Criteria:

Each complete application meeting all threshold criteria will be reviewed and scored on the following criteria, with additional detail about the criteria provided below:

Within each criteria, the following factors will be considered:

1. Development Team – up to 30 points:

· Developer has demonstrated experience developing projects of comparable size and complexity;

· Owner has demonstrated experience owning and operating projects of comparable size and complexity, with particular attention to successful mixed-income projects incorporating PBVs;

· Property manager has demonstrated experience managing projects of comparable size and complexity, with particular attention to successful mixed-income projects incorporating PBVs;

· General Contractor, if selected, has demonstrated experience constructing projects of comparable size and complexity;

· Architect has demonstrated experience developing projects of comparable size and complexity, with particular attention to sustainable and neighborhood-compatible design;

· Service Provider demonstrated experience developing projects of comparable size and complexity with particular attention to successful mixed-income projects incorporating PBV.

2. Project Feasibility – up to 30 points:

· Development budget is fully developed and cost reasonable;

· Ability to secure financing for the project is demonstrated by letters of commitment (preferred) or letter of interest for all sources;

· Projected gross PBV rents are within BHA’s payment standards and meet rent reasonableness test. Projected rents for units without PBVs are consistent with comparable units in the neighborhood;

· Operating pro forma demonstrates satisfactory cashflow over the term of the HAP and demonstrates the need for PBV assistance;

· Funding for any anticipated services has been secured (preferred) or there is a reasonable plan for services funding, as demonstrated by prior success with the funding sources;

· Timeline for development demonstrates that occupancy no later than January 2028 is feasible;

· Environmental studies demonstrate no environmental hazards, or a satisfactory plan to address any environmental concerns.

3. Project Design and Location – up to 20 points:

· Site location is consistent with BHA’s goal of deconcentrating poverty;

· Redevelops underutilized land;

· Consistent with local plans and zoning requirements;

· Location provides access to neighborhood amenities including: greenspace and recreation, schools, health care, employment opportunities, mixed retail including grocery, pharmacy, and dining options, and transit;

· Neighborhood-appropriate mixed-use is included;

· Adequate parking is provided;

· Common area amenities are consistent with or exceed market expectations;

· Accessible units for disabled households exceed the minimum federal standards;

· Energy efficiency and sustainable design features are incorporated;

· Units are appropriately sized and designed for anticipated household occupancy;

· Units will meet all local code and pass required BHA property inspection prior to occupancy.

4. Services and Programmatic Goals – up to 20 points:

· Mixed-income unit occupancy profile;

· Positive impact and coordination with neighborhood revitalization strategy;

· Resident selection will prioritize households exiting or at risk of homelessness (not to exceed 10% of total project units), and/or residents with incomes below 30% of AMI;

· Strength of supportive services plan (if proposed), including appropriateness to the target population and the amenities available to support service delivery. Participation by residents must be voluntary.

V. Required Application Forms & Exhibits All applicants must submit the completed Application Form and the corresponding Attachment List included in the Application Packet issued with this RFP.

☐ Completed Application Form (ALL applicants);

☐ Attachment List: either LIHTC Attachment List OR Non-LIHTC Attachment List;

☐ All attachments checked on the applicable Attachment List.

Name each attachment with the corresponding Tab Number in the attachment list. Respond only to the items requested. Reviewers will not consider materials that are not requested. Brevity is strongly encouraged. Once submitted, no additions, deletions, or substitutions may be made to the written proposal.

VI. Method of Evaluation & Award

BHA will appoint a Selection Panel composed of PHA staff and, where appropriate, outside development or housing-finance professionals.

BHA will conduct an initial review of all proposals to determine completeness and responsiveness in accordance with this RFP. Proposals that fail to meet all threshold requirements will be rejected without further consideration.

At any time during the evaluation process, BHA may, but is not obligated to, request clarification, additional information, or documentation from any proposer, including proposers whose submissions appear incomplete or non-responsive. Any such request shall be made at BHA’s sole discretion and may be issued to one, some, or all proposers without providing the same opportunity to others.

Any clarification or additional information provided in response to BHA’s request shall not alter the proposer’s original submission except to the extent expressly permitted by BHA. BHA’s decision to solicit or consider any additional information shall not constitute a waiver of any requirement of this RFP.

Proposals that meet all threshold requirements, as determined solely by BHA, will be evaluated and ranked by the BHA Selection Panel in accordance with the Scoring Criteria set forth in this RFP. BHA reserves the right, in its sole discretion, to reject any proposal that fails to meet threshold requirements, and to determine whether a proposal has sufficiently satisfied all mandatory elements to advance to the scored evaluation phase.

BHA, in its sole discretion, may select none, one, or more of the proposals submitted, and reserves the right to award fewer PBVs than requested in any proposal. Evaluation scores and rankings are advisory and do not bind BHA to select any proposal, including the highest-ranked proposal. The Selection Panel’s recommendations are subject to final approval by BHA. Documentation regarding the basis for BHA’s award decision will be made available for public inspection in accordance with 24 C.F.R. § 983.51.

VII. Federal Compliance Requirements Eligible projects must remain in compliance with all applicable federal housing requirements, including but not limited to:

1. Conduct of Development Work (24 CFR § 983.154): All PBV development work must comply with HUD regulations governing eligible activities.

2. Environmental Review: No choice-limiting activities may occur prior to completion of all applicable federal reviews and issuance of written environmental clearance (24 CFR Part 58).

3. Davis-Bacon and Related Acts: If project funding or assistance triggers prevailing-wage requirements, the owner/contractor and all subcontractors must comply with applicable Davis-Bacon wage laws, the Contract Work Hours and Safety Standards Act, Department of Labor regulations at 29 CFR part 5, and other labor standards. BHA will monitor compliance.

4. Fair Housing and Civil Rights: Projects must comply fully with all federal, state, and local nondiscrimination laws, including the Fair Housing Act, ADA, and Section 504. Prior to award of PBVs, the owner must submit an Affirmative Fair Housing Marketing Plan (AFHMP, HUD-935.2A).

5. Uniform Relocation Act (URA): If the project involves an occupied property, the owner must comply with applicable relocation requirements for residential or non-residential occupants.

6. Section 3 Requirements: The owner must implement Section 3 economic opportunity requirements, as applicable, and maintain related records.

7. Owner Disclosure: The owner must certify that the owner and all project principals are not on the U.S. General Services Administration list of parties excluded from federal programs and disclose any potential conflicts of interest.

VIII. Miscellaneous Procurement Provisions All qualifications will be considered as they are construed by BHA, with BHA reserving the right to reject any and all materials and the right to request oral presentations of all or some of the proposers. The reviewers request that information be succinct. After reviewing the qualifications, BHA may request additional information of some or all applicants.

BHA reserves the right to:

• Reject any or all proposals, in whole or in part;

• Request additional information or clarifications;

• Withdraw, cancel, or modify this RFP at any time;

• Waive minor informalities or technical defects;

• Make a partial award or no award under this RFP.

BHA may seek references and evaluate past performance to ensure responsible operations. All proposals become the property of BHA upon submission and may be subject to disclosure under Pennsylvania’s Right-to-Know Law, subject to permissible exemptions for proprietary or confidential business information.

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