Request for Applications (RFA) for Multi-Family Rental Unit Development

The City of Owensboro, Kentucky, is seeking a development team to utilize $856,686.95 in HOME Investment Partnerships-American Rescue Plan (HOME-ARP) funds for constructing multi-family rental housing targeting specific qualifying populations. The procurement aims to develop affordable rental units serving homeless individuals, those at risk of homelessness, domestic violence survivors, and other populations experiencing significant housing instability. Successful applicants must provide permanent or transitional housing with minimum one-year lease terms, comply with federal HOME Program requirements, and maintain affordability for 20 years. The competitive solicitation will evaluate proposals across ten scoring categories, including location in CDBG target areas, demographic commitment, construction features, resident programs, development team experience, prior performance, project readiness, non-profit partnerships, fund leveraging, and financial viability. Applications are due by 5:00 PM CST on August 15, 2025, and must be submitted through the City's online Bonfire portal, with potential developers required to demonstrate comprehensive project specifications, site control, construction timelines, and detailed financial commitments.

The procurement encourages diverse development teams and allows for various organizational structures, including potential non-profit partnerships. Funding will be provided as deferred loans for up to 20 years at 0% interest, secured by recorded mortgages, with permanent loans not exceeding 40 years. Projects must meet specific affordability requirements, including maintaining a minimum percentage of units for households at or below 60% of Area Median Income, with options to serve lower income levels for additional scoring consideration. Developers must comply with federal regulations including Davis-Bacon prevailing wage standards, Americans with Disabilities Act (ADA) accessibility requirements, and environmental review processes. Projects will be required to maintain debt coverage ratios between 1.15 and 1.50 depending on project size, and must integrate comprehensive resident support services such as job training and financial counseling. The total available funding of $856,686.95 will be competitively awarded, with potential for multiple projects to receive partial funding based on merit and alignment with the City's affordable housing objectives.