Development of Affordable OO Homes Loan Program QA.pptx

This is a Question and Answer presentation document supporting an RFP issued by the City of Sun Prairie Planning Department (Wisconsin) for the development of affordable owner-occupied homes. The RFP seeks proposals for new construction or acquisition/rehabilitation of housing units targeting households at or below 80% Area Median Income within Sun Prairie city limits. Eligible applicants include private, non-profit, CHDO, and for-profit entities. Two virtual Q&A sessions were scheduled for March 26, 2026, at 2:00 PM CST and March 31, 2026, at 10:00 AM CST, with responses posted by April 3, 2026. Proposals are due Friday, April 10, 2026, at 10:00 AM CST. New construction projects require site control at the time of application with construction to commence within one year of award, while acquisition/rehabilitation projects have a two-year window to acquire, rehabilitate, and sell without requiring immediate site control. The contract term runs from June 1, 2026, through April 30, 2028, with an option to extend for one additional year.

The City of Sun Prairie has allocated $600,000 in funding from the Sun Prairie Affordable Housing Fund (derived from TID extensions with no federal funds) for this program, offering maximum funding of $200,000 per owner-occupied unit as 0% interest, long-term deferred loans. Of the total loan amount per unit, a minimum of 75% must be directed to capital costs (construction, land acquisition) with up to 25% allocated to soft costs including developer fees capped at 10% of the total award. A portion of the loan is structured as downpayment assistance to homebuyers, with the remainder repaid to the City at transfer of ownership. The construction loan is due upon the homeowner's occupancy, while downpayment assistance is due at sale or transfer of ownership. Applicants committing to permanent affordability through a 99-year Land Use Restriction Agreement are eligible for 50% loan forgiveness at the time of first homebuyer sale. Applicants must demonstrate a minimum 5% equity contribution through ownership equity or deferred development fees. No set-asides or restrictions limit eligible organization types, and no incumbent vendors or current contractors have been identified in the procurement documents. Insurance requirements include workers' compensation with statutory limits, commercial general liability of $1,000,000 per occurrence, automobile liability of $1,000,000, umbrella liability of $5,000,000, and professional liability of $1,000,000 per claim, with the City named as an additional insured on all policies.