ITN_GRM260683_Development__Affordable_Housing__NW_7th_Avenue_Subdivision__Section_2__Addendum_2.pdf

Addendum # 2

Date: August 3, 2026

To: All bidders

From: David Williams, Buyer

Solicitation Number: ITN# GRM/260682, 260863, 260864, and 260865

Solicitation Title: Development – NW 7th Avenue Subdivision (Tucker Hill)

SECTION 1. SOLICITATION - CLARIFICATION

1. Would we be able to use one set of blueprint same house for all the lots or do you guys want other model of blueprints?

Answer: Yes, one blueprint is acceptable for all the lots. However, the units would have to be differentiated (different colors, different materials, etc.).

2. Qualification requirement conflict. "Section 2.3 of the ITN requires proposers to certify completion of no less than three (3) separate mixed-use redevelopment projects, yet Section 1.2 explicitly excludes multifamily, duplex, and attached housing from this program. Please clarify: does the City intend for 'mixed-use redevelopment project' experience to include completed single-family infill/scattered-lot developments, or is genuine mixed-use experience mandatory for a proposer to be found responsive?" Why it matters: this could disqualify you on a technicality before your financials are ever reviewed. Get it in writing first.

Answer: The City’s intent is to engage experienced builders who can deliver projects of varying complexity. Mixed-use development experience can also include single-family residential projects. Multiple units will need to be constructed simultaneously in order to meet the required deadlines, increasing the level of difficulty when compared to building one project at a time.

3. Land purchase price. "The Preliminary Term Sheet (Appendix I) provided with the ITN contains no purchase price. Please confirm: is the City expecting proposers to name their own purchase price as part of the proposal per Section 1.5.A, or will the City publish an appraised fair market value for proposers to reference before the proposal deadline?" Why it matters: it's the single largest unknown in your entire cost stack.

Answer: The Marion County Property Appraiser’s Property Report Cards are attached as exhibits to provide the assessed value. The City considers the assessed value to be the fair market value.

4. City Housing Incentive Fund — actual award amount. "Please confirm the maximum incentive amount available per unit and per program, the source of funding, and whether the award is guaranteed at proposal or subject to further City Council appropriation after selection." Why it matters: your base-case scenario only breaks even because it assumes the maximum incentive. If the real number is lower, base case goes negative.

Answer: The maximum grant is $20,000 per unit. Awards are subject to the availability of funds at the time of application. Applications to the affordable housing incentive fund are handled through a separate application process. The details of the Affordable Housing Incentive Fund are set out in Section 106 – Code of Ordinances, subject to the availability of funds and City Council approval.

5. Lot count confirmation for Section [__]. "Please confirm that Section [__] of this ITN consists of five (5) single-family detached buildable lots following any required lot reconfiguration to meet the 60' minimum frontage requirement under Section 1.3.a."

Why it matters: your entire program margin scales off the lot count. Get the section-specific number, not an estimate.

Answer: It is specified both in the ITNs and the verbiage that the lots will be reconfigured and possibly rezoned to provide 2 buildable lots for Section 1, 3 buildable lots for section 2, 3 buildable lots for section 3, and 4 buildable lots for section 4.

Section 1.5.E. outlines the full scope of the project when all areas are combined, whereas, each individual ITN document breaks down the developable acreage and arial maps showing the area to reference back to the subdivision plan also provided.

6. Confirmed lot count, all four sections. "Please confirm the exact number of buildable single-family lots in each of Sections 1–4 following any required lot reconfiguration, and whether reconfiguration will be completed by the City prior to closing or is the developer's responsibility." Why it matters: if you're evaluating bidding on more than one section, you need the full picture, not just your target section.

Answer: Refer to the answer above pertaining to lot developability per section. The lot reconfigurations will be handled by the plat for sections 3 and 4, however, the lot reconfigurations for Sections 1 and 2 will be done through the City of Ocala Planning Department.

7. Manufactured/modular construction acceptability. "Exhibit H specifies concrete block (CMU) construction on the first floor as a design standard. Please confirm whether manufactured housing (HUD-code) or modular/panelized construction would be an acceptable alternative, provided the finished product meets the same exterior material, wind rating, and design specifications outlined in Exhibit H — or whether site-built CMU construction is mandatory with no substitution permitted." Why it matters:

modular/manufactured construction could meaningfully undercut your $135–185/sf hard cost range. This single answer could shift you from base case to aggressive case without relying on execution risk.

Answer: Only Concrete Block homes will be allowed, this ITN does not allow for modular or manufactured homes.

8. Required AMI mix per section. "The ITN states affordability targets range from 30% to 120% AMI but does not specify how many units must fall into each tier. Please clarify whether the City has a required or preferred AMI distribution per section, or whether proposers may set their own mix subject to City approval." Why it matters: every low- AMI unit is a guaranteed loss under the formula cap. Your margin depends entirely on how many high-AMI units you're allowed to weight the mix toward.

Answer: The City does not have a required AMI mix, we will allow for the minimum of 30% with a maximum of 120%. That will be up to the developer.

9. Resale enforcement mechanism for the 20-year affordability period. "Please specify the legal mechanism used to enforce the 20-year affordability period on resale for for-sale units — e.g., a deed restriction with a fixed resale price formula, a right of first refusal held by the City/CRA, a shared-appreciation mortgage, or another instrument — and whether that mechanism has already been drafted and can be reviewed prior to proposal submission." Why it matters: this restricts your buyer's resale, not your own exit

— but lenders underwriting the buyer's mortgage will want to see this document before closing on your sale.

Answer: A lien will be recorded against the property to ensure the affordability period is met. The value of the lien will be determined during negotiations. An example of the general lien terms is provided in Sec. 106 of the City Code of Ordinances. The City may also considered deed restrictions.

10. Treatment of AMI-formula sales price vs. market price. "Given that the AMI-based affordability formula may produce a maximum sales price that differs meaningfully from prevailing market comps in West Ocala, please confirm whether proposers must sell strictly at the AMI-formula price, or may sell at market price up to the formula ceiling."

Why it matters: at 120% AMI the formula implies prices well above what this submarket actually supports. You need to know which number is binding.

Answer: The AMI based affordability formula must be used to establish the sales price.

This figure is revised each year based on the published changes in the area medium income within Marion County.

11. Underlying assumptions behind the $255,000 example price. "Please provide the underlying mortgage rate, term, down payment, and insurance assumptions used to calculate the $255,000 maximum affordable sales price example in Section 1.4.B(1), so proposers can accurately price units across all AMI tiers and household sizes." Why it matters: right now you're triangulating their pricing formula from a single data point.

Get the actual inputs before locking a price grid into your Term Sheet.

Answer: This figure is calculated by the Marion County Housing Finance Authority and made available to the City. Please reach out to the MCHFA for the requested assumptions.

12. Incentive form and timing. "Please confirm whether incentives (fee waivers, deferrals, reimbursements) are applied at time of permitting/closing, reducing upfront cost, or reimbursed after construction completion, requiring the developer to carry the cost through construction." Why it matters: changes your construction-period financing carry, not just your total incentive value.

Answer: Any incentive provided by City of Ocala Growth Management will be paid upon project completion and in the manner denoted in the developer’s agreement for the section(s). The details of the Affordable Housing Incentive Fund are set out in Section 106 – Code of Ordinances, subject to the availability of funds and City Council approval.

13. Multi-section award and phased construction (merged). "If a single developer is awarded development rights to more than one of the four ITN sections, will the City permit a phased construction approach — for example, completing and obtaining certificate of occupancy on one home before commencing construction on subsequent homes — rather than requiring concurrent construction across all awarded lots? Please also confirm whether a single developer may be awarded more than one section, whether sections are evaluated and awarded independently or as a package, and whether the 6-month commencement / 18-month completion timeline in Exhibit F applies per phase or to the program as a whole." Why it matters: lets you build one house, sell it, and reinvest proceeds into the next — reduces your peak capital exposure significantly versus building all units simultaneously.

Answer: All buildings within the awarded area must be constructed within the agreed timeline. The developer is welcomed to phase their construction of the properties, however, that will not increase the timeline for construction across all sections awarded.

14. Off-site infrastructure and utility connection costs. "Section 1.3.e states the parcels have off-site infrastructure/utilities adjacent to the property line. Please confirm whether utility connection fees, impact fees, and any required on-site infrastructure work beyond the driveway/sidewalk specified in Exhibit H are the developer's responsibility or included in City-provided site work." Why it matters: your $20,000/lot site-work assumption could be understated if utility connection isn't already stubbed to the lot line.

Answer: These costs are the responsibility of the developer.

15. MBE/Section 3 scoring credit. "Please confirm whether MBE or Section 3 Business Concern certification provides scoring advantage under the published evaluation criteria, or is informational only." Why it matters: low priority, but free to ask, and relevant if any of your subcontractors qualify.

Answer: This is for informational purposes only.

SECTION 1. SOLICITATION - CLARIFICATION