CDBG - Rental Rehabilitation

Dane County and the Urban County Consortium are seeking proposals for a Community Development Block Grant (CDBG) and HOME Investment Partnership funded Rental Rehabilitation Program aimed at supporting safe, decent, and affordable rental housing for low-and-moderate income residents. The procurement opportunity, identified as RFP #2023-RFP-050PR, invites qualified organizations to rehabilitate rental properties within participating Dane County municipalities, excluding the City of Madison. Eligible properties include publicly or privately owned residential or mixed-use properties, with funding available for repairs to meet housing quality standards, major system replacements, accessibility improvements, lead-based paint hazard mitigation, and energy-related repairs. Proposals will be evaluated across six primary criteria: National Objective-Need and Justification (30 points), Project Approach (30 points), Experience and Qualifications (15 points), Financial Information (15 points), Past Performance (5 points), and Partnerships (5 points). The RFP was released on May 1, 2023, with questions due by June 16, 2023, and proposal submissions required electronically through the county's eProcurement Portal by June 30, 2023, at 2:00 pm, with work expected to begin in 2024 and contracts anticipated to be executed in the fourth quarter of 2023.

The program allows for loans and/or grants covering up to 75% of rehabilitation costs, with specific restrictions on eligible applicants, including property owners of non-owner-occupied residential rental properties with no more than four dwelling units located in participating municipalities. Loan terms include a 3% simple interest rate, a maximum 15-year repayment period, with maximum loan amounts of $20,000 for a single unit and up to $39,500 for a 4-unit building. Borrowers must maintain properties in compliance with local codes and housing quality standards and agree to rent to low-to-moderate income tenants at or below HUD fair market rates. While no specific set-aside designations for disadvantaged enterprises are explicitly mentioned, the program requires comprehensive documentation demonstrating organizational capacity, staff qualifications, and project management capabilities. New applicants are automatically awarded full points for past performance, and organizations must ensure that at least 90% of HOME-assisted rental units are occupied by households with incomes not exceeding 60% of the area median income. The total funding amount available for 2024 is currently undetermined, but the program is funded through HUD HOME and CDBG funds, with affordability periods ranging from 5 to 20 years depending on the level of investment and housing development type.