City of Flagstaff Public Housing Siler Site Scope of Work

The City of Flagstaff | City of Flagstaff Housing Authority | City Nonprofit (“City”), consistent with its 10-Year Housing Plan, wishes to redevelop Siler Homes, a 100-unit public housing development described below in more detail. This Request for Proposal (“RFP”) seeks experienced, qualified developer(s) to act as co-developer(s) with the City or its assignee or nominee. The objective is to develop a new vision for the Siler Homes site (the “Site”). The expectation is that the successful Respondent(s) will design, finance, and construct the Site, as may be expanded with additional City property. The intent of the City is to more than double the total number of residential units, while creating a vibrant, attractive, and diverse mixed-income neighborhood that utilizes a mix of rental units. This solicitation will enact a Community Revitalization Plan for the Siler Homes site, as shown in Exhibit 1. The Plan will allow the City to realize the numerous revitalization goals stated herein, including the delivery of new and upgraded infrastructure and resident amenities.

The City reserves the right to make one (1) or more awards to achieve the objectives of the project.

Background and Goals On December 1, 2020, the City Council declared a Housing Emergency in Flagstaff. On February 15, 2022, the City Council subsequently adopted the Flagstaff 10-Year Housing Plan, to “reduce the current affordable housing need in our community by half over the next ten years”, and “create or preserve 7,976 housing units by 2031 with a minimum of 10% of them being affordable. This will increase the overall supply of market rate, workforce, and affordable housing occupied by local residents.” The City’s public housing sites are a critical element of preserving and building new affordable units. Additionally, voters approved Proposition 442 in November 2022, which provides limited general obligation bond funds for the redevelopment of City-owned housing to create additional affordable rental units.

Public Housing and RAD The City owns and operates 265 units of low-income public housing. The City plans to reposition its public housing portfolio through the US Department of Housing and Urban Development’s (“HUD”) Rental Assistance Demonstration (“RAD”) program. The City will perform the Section 8 Housing Assistance Payment Contract administration and, via a variety of mechanisms, retain continued control of each project. For example, it is anticipated that the City will be the ground lessor of the Site to the project owner. The City may also be a part of the project owner entity.

https://www.flagstaff.az.gov/DocumentCenter/View/72509/Flagstaff-10-Year-Housing-Plan---FINAL-6152022 https://www.flagstaff.az.gov/5131/Housing-Bond

Project Site

Information and Goals Siler Homes was built in 1972 and contains 100 public housing units. The 14.98 acre parcel, 13.02 of which are unconstrained, is bordered by E Lockett Drive and N Fanning Drive. In addition, the City owns an undeveloped 2.09 acre parcel bordering the northeast corner of the Siler site and E Lockett Drive. No federal or state funds were used in the acquisition of this parcel. [The 2.09 acre parcel may be in part or in whole available to the project.] A title report for both properties is included as Exhibit 2.

Zoning - The parcels are zoned High Density Residential. Neighboring properties are primarily zoned Highway Commercial and Public Facility, with small borders with Single-family Residential and Medium Density Residential.

Utilities - The Site is mostly served by existing 6-inch water mains and 8-inch sewer mains, extending from 8-inch water and sewer mains running north-south to the east and west.

Infrastructure may need to be replaced with larger mains. Gas lines are underground and owned by the Housing Authority from a single meter to each home. Water lines are underground and owned by the Housing Authority from various meters to each home. Electric service is both overhead and underground and is owned by APS up to the residential meters. An additional goal of the Site redevelopment is to transition ownership and maintenance of any gas lines remaining after the redevelopment to Unisource. Unisource should be contacted for further information.

Transportation - The parcels are located adjacent to a major transportation corridor, with a public transit bus stop adjacent on E Lockett Road and an additional bus stop about 300 feet from the southeast corner of the Site on E Rt. 66. Lockett Road has a bike lane or shoulder, and the Site is close to the Flagstaff Urban Trail System (FUTS).

Property Condition - The City makes no representation as to the condition of the Site and it is the responsibility of the Respondent to investigate conditions of the Site for the Respondent’s recommended project.

The newly developed project may be exempt from County property taxes, but the Respondent team is responsible to conduct its own due diligence and to obtain any or all written assurances or legal opinions regarding same.

Site Objectives

Requirements

1. The City expects the Respondent’s plan to at least double the number of residential units on the parcels, which may be combined in whole or in part. A key attribute of the project will be to balance density with any neighborhood and aesthetic concerns, incorporating accessibility, sustainability (where financially viable), and include missing middle housing types (e.g.

townhouses, duplexes, cottage apartments).

The following additional uses must also be included:

• Housing Administration office and maintenance facility for storage of supplies, repair work, and vehicle bays.

• Community space accommodating resident meetings and functions large enough to accommodate a reasonable number of the site residents for property meetings etc.

• Space for Headstart.

• Other site amenities consistent with the Arizona Department of Housing 2027-2028 and subsequent Qualified Allocation Plans.

2. Phasing of redevelopment should be designed to minimize resident relocation, preserve underground utility pipes serving existing units while developing new units, and plan for the new build of additional uses in advance of their demolition.

Current Public Housing Resident Considerations Bedroom sizes for public housing residents transitioning to new units will need to match each household’s size. Currently, right-sizing the inventory of occupied units would result in 15 one-bedroom, 45 two-bedroom, 23 three-bedroom,13 four-bedroom and 2 five-bedroom units, with all units having laundry hookups, at a minimum. The households in the five-bedroom units may be relocated to a scattered-site unit of appropriate bedroom size. Exact unit size requirements will change as occupancy changes.

General Terms and Conditions

1. Right to Reject & Waive

The City reserves the right to reject any or all submissions, to waive informalities or irregularities in any proposal, and to request additional information from any Respondent as deemed necessary. The issuance of this RFP does not constitute a commitment by City to award a contract, enter into any agreement, or reimburse any costs incurred in the preparation and submission of a proposal package. The determination of the criteria and process used to evaluate submissions, and the decision who receives a contract award, is in the sole discretion of City.

Multiple awards may be made.

2. No Compensation for Cost of Submission

All Respondents are solely responsible for any and all expenses associated with the preparation, development, and submission of their proposals. The City assumes no liability for such costs under any circumstances. Respondents selected for further interviews or negotiations will likewise be responsible for all expenses incurred during those processes.

3. Complete & Accurate Submission

A Respondent's failure to provide complete and accurate information in proposal to this RFP may disqualify the Respondent from further participation in the selection process. All proposals will be initially reviewed to determine compliance with the format and content requirements specified in this RFP. Proposals that are incomplete or inaccurate may be disqualified without further review.

Proposals may be corrected, modified, or withdrawn, provided that the correction, modification, or request for withdrawal is submitted in writing and received by the City prior to the date and time designated as the final submission deadline. Respondents are solely responsible for ensuring the timely delivery of their submissions. The City will not accept any Proposal received after the stated deadline.

4. Acknowledgement of Amendments

The City will endeavor to provide copies of any applicable amendments or addenda to all potential Respondents to whom this RFP has been distributed. However, it is the responsibility of each Respondent to inquire as to the existence and content of any amendments or addenda, as the same shall become part of this RFP. All Respondents will be bound by any issued amendments or addenda, whether or not they were actually received by the Respondent. Respondents must acknowledge receipt of any amendments or addenda in their submission. Failure to acknowledge an amendment may result in rejection of the Proposal.

5. Submissions and Public Records

All submissions are public records and may be subject to public review in accordance with applicable Arizona public records laws.

6. Key Personnel

No changes to key personnel or their committed hours may be made after contract award without prior written authorization from the City.

7. Non-Discrimination

Respondent and all contractors performing work on its behalf comply with all applicable federal, state, and local non-discrimination laws and regulations, including those related to employment, contracting, and the delivery of services.

8. Debarment & Suspension

Submissions by any Respondent who is currently suspended or debarred by HUD or any other federal or state agency from providing services to public housing authorities or recipients of federal funding will not be reviewed and a contract will not be awarded.

9. Conflicts of Interest & No Contact Policy

No Respondent shall initiate contact with any employee of the City regarding this RFP until after the selection process is complete and a formal agreement has been executed. All inquiries related to this RFP must be submitted in writing to the designated City contact. Failure to adhere to these requirements may result in disqualification from the solicitation process at the sole discretion of City.

Respondents certify that they have not employed or retained any person or entity, other than an employee working solely for the Respondent, to solicit or secure a contract through this RFP, and that no fee, commission, percentage, gift, or other consideration has been paid or agreed to be paid to any person or entity contingent upon or resulting from the award of a contract through this

RFP.

10. Part of Contract

The contents of the documents submitted by a successful Respondent may, at the sole discretion of the City, become part of any resulting contract award.

11. Governing Law

This RFP and any resulting agreements shall be governed by and construed in accordance with the laws of the State of Arizona and the applicable regulations of the City.

Respondent Acknowledgement

By submitting a proposal to this RFP, the Respondent acknowledges and agrees to all of the terms and conditions set forth herein including that the Respondent has read, understands, and agrees to comply with all requirements, terms, and conditions outlined in this RFP.

Scope of Services

Minimum Requirements

1. The Respondent must have the following experience, which must be described and demonstrated by supporting documentation in its proposal:

• Successful Low Income Housing Tax Credit (“LIHTC”) development in the state of Arizona.

• Development/redevelopment, construction, and operation of housing under the HUD RAD program.

• Full working knowledge of affordable housing regulatory issues and demonstrated compliance.

• Success in soliciting, applying for and securing a variety of funding including but not limited to LIHTC equity, federal grants, private loans, tax-exempt bonds and other financing to facilitate completion and operation of projects.

• Successful working relationships with municipalities in developing affordable housing, including but not limited to site preparation, entitlements, and utility coordination

2. City will require the following terms, which will be included in documents such as a Development Agreement, Operating or Partnership Agreement, and Property Management Agreement, as applicable to the respective document, the full and final terms to be negotiated and acceptable to the City:

• The City and selected Respondent, as co-developers, will enter a Development Agreement prior to the commencement of project work. If the City and the selected Respondent are unable to agree on terms of the Development Agreement within one hundred eighty (180) days after selection of such Respondent, the award to the Respondent will be terminated.

• The City will remain the owner of the land for the entire period of the Operating Agreement/Partnership Agreement.

• The City or its nominee or assignee will be a member (or partner) in the project ownership structure.

• City will retain the right to have a role in property management during the first two (2) years of occupancy, with the intention of becoming the sole Property Manager at the end of two

(2) years, or when the project achieves stabilization.

• The City shall receive a share of the developer fee.

• General Partner ownership split (minimum 50/50).

• Right of First Refusal of the project.

• Option to purchase the project after the initial compliance period or before

Developer Responsibilities

It is anticipated that the selected Respondent, as co-developer will be responsible for all phases of predevelopment, financing, development, lease-up and property management; except as provided in this RFP. The information below provides basic responsibilities and is not an exhaustive list. All predevelopment work will be at the sole financial risk and cost to the Respondent awarded the contract.

Predevelopment work will include but not be limited to design, site planning, resident meetings, environmental review, market studies, and other matters as may be required for the project.

The developer will perform all finance functions, including but not limited to funding applications, LIHTC Syndication, providing LIHTC investor guarantees, and working with City’s project legal counsel on submissions and closing requirements to and with ADOH and HUD. City’s project legal counsel will lead all submission and closing communications with HUD.

Compliance

The developer is responsible for compliance with applicable federal regulations, including but not limited to Fair Housing, ADA, Section 504, Minimum Property Standards, Davis Bacon, Section 3, URA, National Environmental Policy Act, and other laws and regulations. The redeveloped units will be subject to a RAD Use Agreement and may be subject to other restrictive covenants.

In addition, the developer must adhere to the current Zoning Code (Title 10 of the City Code), and any other applicable development codes standards, including but not limited to engineering, fire, building standards, energy efficiency standards, and sustainability/resource requirements, as well as the Arizona Department of Housing current Qualified Action Plan Exhibit A Design Standards.

Format of Proposal

The development proposal should include a design concept and approach for the Site, including a redevelopment phasing and timing plan, and income mixing and unit sizing.

The proposed development timeline and budget sources and uses should include all financing sources, developer and contractor fees.

Team experience should specify firm experience, particularly with ADOH LIHTC and HUD/RAD, development team capacity, and references.

The developer should also provide a sample Fair Housing Affirmative Marketing Plan and Management Plan.

More details are provided in each section of the Proposal Evaluation/Weighting Criteria.

Proposal Evaluation Criteria/Weighting

Please limit the proposal to thirty-five (35) pages.

Scoring

Proposals will be scored on the following criteria, with award being made to the highest scoring proposal. If the City is unable to successfully negotiate a Development Agreement with the highest scoring proposal, the City will then approach the second-highest scoring proposal.

Factor Criteria Points Site Concept and Plan Clear, detailed narrative and picture of final vision for project and phasing to meet project objectives.

Value to the City Extent to which the proposal meets City participation terms, affordable housing and additional use goals.

Organizational Qualifications, Capacity and Experience

Experience with projects of similar scale, particularly with federal funds and tax credits (RAD/ADOH LIHTC); ability to perform work within required time parameters.

Financial Plan and Capacity Demonstrated capacity, partnership, and financial feasibility for all phases of the project.

City Financial Participation (Price)

Anticipated funds from the City to complete the project.

Site Concept and Plan

Please provide a clear picture of the Site vision and concept

• Included narratives, images, or any other relevant means of communicating your vision.

Include neighborhood perspective, unit counts and bedroom sizes, building height, housing types, unit square footage and amenities, and additional site uses and amenities.

• Provide a project timeline for each phase with major milestone estimates up to and including projected occupancy.

• Describe any specific requests that the City can reasonably accommodate.

Value to the City

Please demonstrate the value to the City provided by the proposal.

• If any affordable units are being created beyond the public housing replacement unit, please describe what Average Median Income (AMI) will be targeted and the affordability period (see City Affordable Rental Program Rent Limits,)

• Describe funding sources for the project, and any known funding gaps. Include a plan and timeline to address these gaps.

• Describe how the proposal implements the City’s participation in project and property management.

• Describe how the proposal implements other City plans or goals.

Organizational Qualifications Capacity and Experience

Please provide information on the development team including relevant experience and capacity to fulfill this project, including:

• Name of corporate entity, corporate status, length of time in business (City may request financial statements).

• Resumes for each core team project member and proposed subcontractors, including current certifications and licenses.

• Ability to comply with applicable local, state, and federal laws and regulations based on funding source.

• Letters of support from existing partnerships/relationships – banks, investors, general contractors, subcontractors, etc.

• Documentation of sufficient dedicated and available resources to perform the work as outlined.

• Track record of successful partnerships with counties, municipalities, state agencies, and/or local communities to develop projects that are aligned with the community’s goals and values.

• Provide no more than three (3) examples of prior completed residential projects within the last ten (10) years, of similar scale, scope and funding, including:

o Project name and address o Project size o Target market and AMI o Timeline (concept, construction, completion) o Final cost versus proposed budget o Project’s capital funding, including types, amounts of equity or debt/financing o At least one challenge encountered during the project and how it was resolved o Site plans/final visuals

• Indicate any experience working in similar climates and geographies to Flagstaff.

• Any other qualifications that uniquely prepare the project team to deliver the project.

• Any litigation the organization or its members have been involved in within the past 10 years on any affordable housing or residential construction projects

Financial Plan and Capacity

Demonstrate a proven ability to finance the project, including:

• Details of successful financing on previous projects, particularly with LIHTC awards through ADOH.

• Project financing and equity plan, projected funding sources, letters of financial commitments, pre-approved funding from lenders, etc.

• Predevelopment, development budgets and operating pro formas. Break out of developer fee.

• Ability to secure and leverage equity, lending, tax credits, and/or other public and private funding sources for predevelopment and development.

City Financial Participation

• Specify any funds requested from the City for execution of the project plan.

Submission Instructions

Proposals must be submitted by January 5, 2026, 12:00 pm Mountain Standard Time (MST) (the “Deadline”) to be eligible for consideration. Respondents should make early submission of the materials to avoid any risk of loss of eligibility brought about by unanticipated delays or other delivery related problems. Proposals received after the Deadline will be deemed unresponsive and be disqualified.

This RFP provides the general scope of services needed and every effort has been made to outline requirements. The City understands that questions may arise, or additional information may be needed. Questions and inquiries regarding this RFP must be submitted in writing to the OpenGov Question and Answer platform.

If there are any emergency requests, please email:

Emily Markel Purchasing Manager

Emarkel@flagstaffaz.gov

Reservation of Rights

The City reserves the right in its sole discretion to:

• Reject any or all Proposals to this RFP, in whole or in part, at any time.

• Modify, suspend, or cancel this RFP at any time without liability to any Respondent.

• Make one or multiple contract awards or elect not to make any award.

• Reject the proposal of any Respondent who has previously failed to properly perform any contract for the City.

mailto:Emarkel@flagstaffaz.gov

Attachments:

Certification Regarding Lobbying - GG_LobbyingForm-V1.1

EXHIBIT 1

https://experience.arcgis.com/experience/c35f5fe6d6a54b388cd177f66084e39c

APN DEVELOPMENT/ADDRESS

108-05-003B Lockett/Fanning

108-06-002A Siler Homes https://experience.arcgis.com/experience/c35f5fe6d6a54b388cd177f66084e39c

EXHIBIT 2

Title Reports