Surplus Real Property Sales For Housing Development Purposes (CDBG)

The City of Covington, Kentucky's Department of Neighborhood Services, in partnership with its Department of Finance and Procurement Office, is issuing Request for Proposals (RFP260407) for the acquisition and redevelopment of seventeen surplus city-owned real property parcels into affordable or workforce housing through Community Development Block Grants (CDBG) funding. Respondents must submit sealed proposals containing the proposed purchase price for each property, along with financial capacity documentation including two years of audited financial statements, verified sources of funds or financing commitment letters, and a preliminary capital pro forma detailing sources and uses of funds for acquisition and redevelopment. Proposals must be physically delivered to the City's Finance Department at 20 West Pike Street by 10:30 A.M. on June 4, 2026, with a Request for Information deadline of May 8, 2026. Each proposal submission must include three copies consisting of one original, one printed copy, and one digital PDF on USB drive. Evaluation will be conducted through competitive negotiation with estimated completion approximately 45 days after the proposal close date, and the Covington Board of City Commissioners will make final award decisions based on evaluation criteria and the City Manager's recommendation. Key evaluation criteria include proposed purchase price and preference for affordable housing proposals, which are defined as available to households earning at or below 80% of the Area Median Income, while workforce housing serves households at or below 120% of AMI. Respondents must comply with all applicable Kentucky laws, obtain City business regulatory licenses, maintain Commercial General Liability insurance of $1,000,000/$2,000,000, Professional Liability insurance of $2,000,000, and Worker's Compensation insurance, and submit affidavits addressing non-collusion, campaign finance compliance, and conflicts of interest.

The solicitation does not identify specific set-aside designations or restrictions limiting organizational type eligibility; however, properties sold for affordable housing purposes may be sold below market value, while workforce housing proposals require full market value purchase prices, effectively creating preferential incentives for affordable housing development. No incumbent vendors or current contractors are referenced in this property sales transaction. The City makes no representations or warranties regarding property condition or title and offers all properties strictly "as is," requiring successful respondents to conduct comprehensive due diligence including title searches at their own expense. While the City does not currently provide development financial incentives or subsidies beyond the solicitation itself, eligible homebuyers may access the City's Homebuyer Assistance Program offering up to $10,000 in down payment and closing cost assistance. Specific award values or purchase price ranges for the seventeen parcels are not disclosed in the solicitation summary; however, interested parties should consult the complete RFP document for individual property valuations and detailed property information necessary to develop competitive proposals.