Scope of Work - Village Communities of Texarkana, Texas
Request for Qualifications (RFQ) 22-5 Homebuilding Program
The purpose of the Village Communities of Texarkana, Texas (VCTT) "Homebuilding" Program (the "Program") is to incentivize: (1) the development of quality, sustainable housing that is affordable to the residents of the City of Texarkana, Texas, and (2) the development of other uses that complement the City's Housing Policies, economic development policy, or redevelopment policy. Specifically, this program authorizes the VCTT to sell qualifying city-owned real property and resell the tax-foreclosed real property to for-profit, non-profit, and/or religious organizations in a direct sale at less than the fair market value of the land, consistent with the authorizing local, state statute, or city ordinance.
The sale of real property pursuant to The Program will enable VCTT to facilitate the development of housing units that will be offered for sale, lease or lease-purchase to low- and moderate-income households and, on appropriate parcels of land, enable VCTT to facilitate the development of commercial uses such as neighborhood retail.
Consistency with Affordable Housing Development Goals
The operation of The Program shall align with the Village Communities of Texarkana, Texas (VCTT) and the City of Texarkana, Texas' existing affordable housing production goals.
When seeking approval to sell a parcel or parcels of real property pursuant to this Program, VCTT staff must identify the proposed developer, indicate the income band for which the parcel(s) of real property is reserved, and provide a cluster of addresses of the real property. VCTT has nearly 200 parcels of real estate that is available for this program.
The Program Application
Applicants shall submit a complete application composed of all scored documentation and exhibits in duplicate on two separate flash drives. Each document saved should be clearly labeled, identifying the portion of the application with which it corresponds. Excel spreadsheets may not link to external data sources and must be unlocked so that all data, including formulas, are viewable. Completed applications should be submitted to Village Communities of Texarkana, Texas, Attn: Bill Edwards, Director of Construction Management and Modernization.
Application Submittal Dates
Applications will be due at 12:00 pm on Tuesday, December 6, 2022, and should be submitted to Village Communities of Texarkana, Texas, Attention Bill Edwards, Director of Construction Management and Modernization. Complete, viable, and approved applications will be submitted to VCTT's evaluation committee recommendation for approval.
Applications that are not complete (see Exhibit G: Application Submittal Checklist) or that do not comply with the program requirements will not be scored. Applicants should refer to the Program Guidelines when completing the Application. Applicants will be notified of the application review results via email. Please note that emails will be sent only to the point of contact on the application. Applications will be reviewed approximately 15 days after receipt of the completed application.
Term sheets will be required for recommended applications. Once a term sheet is executed by the applicant, the project will be scheduled for consideration by VCTT's Evaluation Committee. If recommended by the Committee, the project will be scheduled for consideration. If approved by the Committee, VCTT or one of its affiliates will provide a development agreement for review and execution by the applicant. The process, from submission of a complete application to execution of a Deed without Warranty, can take up to six (6) months.
The scoring system will allow VCTT staff to determine whether to recommend the sale of an existing lot or lots to a specific applicant and to choose between multiple applicants who are proposing to purchase the same lot or set of lots.
Summary of Project: 30 Points
Submit an executive summary of the proposed development, including the income-eligible households (www.hudexchange.info/resource/5334/cdbg-income-limits/) to be served, neighborhood impact, number of units, location, total project costs, and proposed financing, etc. The summary should also include proposed site plans, floor plans, frontal elevations, security arrangements, amenities, and accessibility/adaptability provisions.
Applicant Experience: 30 points
Developer statement of qualifications that includes:
Financial Projections: 30 points
Design Considerations: 10 points
VCTT strongly encourages the incorporation of defining features of a neighborhood into newly constructed infill houses. Those defining features of older inner-city neighborhoods may include roof pitches, porches, materials, and window types.
Developers must comply with any standards established by an existing neighborhood conservation district and/or neighborhood plan. Site plans and building designs should contribute towards the safe and convenient pedestrian, bicycle, transit, and automobile access to the extent possible within the project site and the adjacent public right-of-way frontage.
When required, developers will be required to demonstrate that the neighborhood association near the land to be developed has been consulted on any and all design issues. Developers should obtain feedback from neighborhood residents and collaboration to ensure that designs are compatible with existing housing and development patterns.
The Entity certifies that all information in this application, including the development plan, is complete and true to the best of the Entity's knowledge and belief. All information furnished in support of this application is given for the purpose of obtaining real property for producing Mixed Income housing under VCTT's Homebuilding Program (The Program). By submitting its application and development plan for consideration, the Entity hereby agrees to defend, indemnify, release and hold completely harmless and whole VCTT, their officers, agents, and employees, against any and all claims, lawsuits, judgments, costs, and expenses, including attorney fees, for personal injury (including death), property damage or other harm for which recovery of damages or equitable relief is sought, suffered by any person or persons, that might arise out of or be occasioned by or from the consideration, approval or disapproval of this application including development plan, and any conveyance of the Property. This indemnification survives and shall not be merged with the closing of this transaction and delivery of any deed or other instrument in connection with the sale of the Property.
As an authorized representative on behalf of the Entity identified below, I hereby submit the Entity's application for the purchase of property identified in the application, and subject to VCTT's Evaluation Committee's approval of the application, including the development plan, agree to pay stated program costs for each lot plus any regulatory and contractual costs, including but not limited to environmental testing, maintenance and replating, required for The Program to acquire and sell developable properties and payment of deed recording fees for the property.
I understand that: (1) by submitting this application for the Property, the "General Conditions for Applications" described below are part of this application, including a development plan, and (2) that the "General Conditions for Applications" survive the closing of this transaction if approved.
Attached is my executed "CERTIFICATION OF NO DEBTS OWED TO THE CITY OF TEXARKANA TEXAS." I represent and certify to VCTT's Homebuilding Program that the Entity has no outstanding VCTT, Housing Authority of the City of Texarkana Texas (HATT), Bowie County Appraisal District (BCAD) or City of Texarkana Texas judgments against it, or its property and the Entity is not delinquent on the payment of any fees, debts, taxes or non-tax liens on property owned by the Entity in the City of Texarkana, Texas or the Bowie County Appraisal District.
I represent that I have full authority on behalf of the Entity to submit this application. By submitting this application, the Entity hereby waives and releases any rights it may have, either now or in the future, to undertake any legal or equitable action against VCTT, Housing Authority of the City of Texarkana Texas (HATT), Bowie County Appraisal District (BCAD) or City of Texarkana Texas, itself and/or as Trustee, for failure of VCTT to properly advertise or notice the sale of the Property or to properly conduct the sale of
this Property and hereby covenants not to sue VCTT, Housing Authority of the City of Texarkana Texas (HATT), Bowie County Appraisal District (BCAD) or City of Texarkana Texas, itself and/or as Trustee, in connection with the advertisement, notice of the sale or the sale of the Property. Upon bankruptcy, receivership, or dissolution of the Entity, the application submitted shall become null, void, and unenforceable, and VCTT shall have no further obligation to the Entity, its heirs, successors, assigns, representatives, or administrators. On behalf of the Entity, I hereby waive any rights the Entity may have to an award or conveyance of the Property in the event of bankruptcy, receivership, or dissolution of the Entity.
Application Submittal Checklist
To be eligible to purchase real property pursuant to VCTT's Homebuilding Program, a developer must meet all the following criteria:
To be eligible to purchase real property pursuant to the Program, the proposed project must meet all the following criteria:
Sale of Lots
Lots advertised for sale through the Program are intended to be sold in defined Clusters of up to 5 lots per bundle. These Clusters have been assembled with available lots identified by VCTT.
An evaluation period of the requested lots will commence after the approval of the sale to the Developer and extend for a period of 30 days. Upon conclusion of the 30-day period, the Developer will confirm the lots to be considered for purchase. VCTT staff will review any excluded lots from the original proposal for verification of identified issues that will prevent the Developer from developing the lot in accordance with the Program requirements.
A fixed price will be determined for up to 7,500 square feet of land purchased under a single proposal. In addition, there will be a fee assessed (TBD) per lot sold assessed by VCTT for recording and filing fees associated with the sale of each lot.
Developer must complete the sale, lease, or lease-purchase within three (3) years from the filing date of the deed transferring the lot from VCTT to the eligible developer. VCTT may grant up to a one (1) one-year extension of the development agreement due to delays related to installation or improvement of infrastructure or zoning/platting issues. However, any changes to the development of any lot noted in the Development Agreement/Plan will need approval by VCTT's Evaluation Committee before such change is to occur. The Developer should notify Land Transfer Program staff immediately of any potential changes to the Development Agreement/Plan in order to avoid any delays in meeting the project timeline requirements.
Applicants shall conduct community outreach with appropriate neighborhood associations and/or community groups soliciting input about the development for applications with five (5) properties or more clustered together and shall provide a summary of those community outreach meetings as part of the application. Community outreach meetings should be conducted within three (3) weeks of being notified by VCTT staff that the applicant's project has been deemed viable, and the applicant may proceed with the meeting. Community outreach meetings should be conducted with VCTT staff, and a summary of any and all outreach meetings shall be provided to VCTT staff within seven (7) days of the meeting date.
Identification of Eligible Households, Affirmative Fair Housing Marketing, and Other Policies
The Funding entities must approve qualified homebuyers prior to sales.
Developers of for-sale housing units may only sell to homebuyers who meet the eligibility criteria set forth in the applicable Homebuyer Assistance Program that they are pursuing.
Developers shall, to the greatest extent feasible, sub-contracting out 20% of all construction costs with minority and women-owned local businesses certified by an approved agency during construction.
Term of Affordability
The term of affordability for for-sale housing units is 5-20 years from the filing date of the deed transferring the unit from developer to homebuyer based on targeted AMIs, and Market Value Analysis of the development is targeting. Housing units will carry a deed restriction reflecting the affordability period.
Deed Restrictions and Rights of Reverter
VCTT will impose restrictive covenants on all parcels of real property it sells pursuant to the Program.
The restrictive covenants will require the parcels of real property to be developed and maintained in accordance with the development agreement and all applicable city, state, and federal laws. These restrictions will include that housing units developed on the parcels of real property be offered for sale, lease, or lease purchase to low- and moderate-income households and be occupied by low and/or moderate-income households for the entire term of the affordability period.
Land acquired by a developer pursuant to the Program may revert to VCTT determines that the developer has:
Upon determination by VCTT that a condition described above has occurred, VCTT is authorized to execute an instrument, exercising against the parcel of real property the VCTT's possibility of reverter with the right to re-entry.
VCTT shall file a notice of the reverter and reentry of the land by the VCTT in the real property records of the county in which the parcel of real property is located, which notice must specify the reason for the reverter and reentry. VCTT shall provide a copy of the notice to the developer in person or by mailing the notice to the developer's post office address as shown on the tax rolls of the City or of the county in which the land is located.
The developer shall not lobby a VCTT staff member either directly or indirectly (through a representative, employee, or agent) from the time a complete application or request is accepted until the applicant or requestor is notified that the public subsidy matter*** will not be considered, or the public subsidy matter is approved or denied by the approving entity. (B) A VCTT staff shall not discuss an application or request for a public subsidy matter*** either directly (with the person or entity submitting the application or request) or indirectly (with a lobbyist, representative, employee, or agent of the person or entity submitting the application or request) from the time a complete application or request is accepted until the applicant or requestor is notified that the public subsidy matter*** will not be considered, or the public subsidy matter*** is approved or denied.
*** PUBLIC SUBSIDY MATTER means any of the following: (A) A tax abatement. (B) A housing tax credit. (C) A historic development tax abatement. (D) Federal grant money is administered by the city. (E) Tax increment financing. (F) An economic development grant or loan. (G) The direct sale or lease of city-owned or city-controlled real property excepted from complying with the notice and bidding requirements of Texas Local Government Code Section 272.001(a) or other laws.
Exhibit F: Homebuyer Underwriting Guidelines
VCTT must 1) ensure that participating buyers will be successful homeowners, so the program should target households who are ready for homeownership, and 2) ensure that assisted buyers are informed consumers and avoid the use of risky lending products.
These underwriting guidelines are based on the following key principles:
To ensure that buyers are likely to sustain homeownership, assisted buyers must:
Pre-Purchase Counseling Requirement
To ensure that buyers are informed consumers, VCTT may require at a minimum:
Primary Loan Expectations
To ensure that buyers receive high-quality loans that are sustainable over time, VCTT requires that the senior loan (i.e., first mortgage) meets the following criteria:
FOR HOMEBUYERS APPLYING FOR DOWNPAYMENT ASSISTANCE, THEN THE UNDERWRITING REQUIREMENTS FOR THAT DOWNPAYMENT ASSISTANCE PROGRAM SHALL APPLY.