Development of affordable homes

The City of Sun Prairie Planning Department (Wisconsin) is soliciting proposals through RFP #26-PLA07 for the development of new affordable owner-occupied homes targeting households at 80% Area Median Income or below. Eligible applicants include private, non-profit, CHDO, and for-profit entities proposing either new construction or acquisition/rehabilitation of existing units within Sun Prairie city limits. Deliverables include completed development projects with homeownership dwellings transferred to owner-occupied status within nine months of construction completion, adherence to all applicable state and local building codes and zoning regulations, and maintenance of a total financing-to-value ratio not exceeding 115% (or 125% for community land trust projects). Key qualifications required include demonstrated site control, financial capacity, past experience producing affordable housing with public funding, and commitment to construction start within one year of funding award (two years for acquisition/rehab projects). The evaluation process employs a 100-point scoring criteria with a minimum threshold of 80 points, assessing project description (30 points), location (20 points), development team experience (20 points), sustainability (10 points), partnerships (10 points), and project financing (10 points). Proposals must be submitted electronically to purchase@cityofsunprairie.com by Friday, April 10, 2026, at 2:00 PM CST. Two virtual Question and Answer sessions are scheduled for March 26, 2026, at 2:00 PM CST and March 31, 2026, at 10:00 AM CST via Microsoft Teams, with responses posted by April 3, 2026. The contract term runs from June 1, 2026, through April 30, 2028, with an option to extend for one additional year upon mutual agreement.

There are no explicit set-aside designations or restrictions limiting eligible organization types, as the solicitation welcomes applications from private, non-profit, CHDO, and for-profit entities. No incumbent vendors or current contractors are identified in the procurement documents. The City has $600,000 available in 2026 for this program, offering maximum funding of $200,000 per owner-occupied unit as 0% interest, long-term deferred loans in second position to primary mortgages. Applicants must contribute a minimum 5% equity contribution through ownership equity, deferred development fees, or a combination thereof, with at least 75% of City funds directed to capital costs and up to 25% supporting soft costs including developer fees capped at 10% of the total award. Applicants demonstrating commitment to permanent affordability through 99-year Land Use Restriction Agreements are eligible for 50% loan forgiveness at first homebuyer sale. All required documentation including the completed application (Appendix A), budget workbook (Appendix B), Form A (Signature Affidavit), Form B (Receipt and Checklist), Form E (Insurance Requirements), financial statements or audits, site and building plans if available, and a signed Memorandum of Understanding for collaborative projects must be submitted with proposals. Insurance requirements mandate 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 all policies naming the City as an additional insured.