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Request for Proposals |
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Request for Proposals |
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Proposals due Friday, March 18, 2005 at 12:00 noon
PURPOSE
The City of Madison Community Development Block Grant (CDBG) Office is seeking proposals from non-profit tax-exempt corporations, for-profit corporations or limited liability companies to create affordable housing opportunities for lower income households in the
Allied TIF
District (see 
map). All housing projects must meet the criteria described in the Project Criteria section of this Request for Proposals.
FUND AVAILABILITY
The City of Madison has $500,000 available. The maximum per unit subsidy is $25,000 for rehab assistance or $45,000 for new units. An additional $5,000/unit may be provided if units are designed to include full accessibility, high air quality, energy conservation or reduction of lead paint. (Rehab means the labor, materials, tools and other costs of improving buildings, other than minor or routine repairs.)
It is the preference of this Request for Proposals to commit all available funds through this Request for Proposal process. The City may fund several projects through this process.
TIMETABLE
The CDBG Office is advertising and accepting written proposals through Friday, March 18, 2005. All proposals must be submitted on the appropriate application and received by 12:00 noon on March 18, 2005. The original plus ten (10) copies of the written proposal are to be submitted to the CDBG Office, 215 Martin Luther King, Jr. Boulevard, Room 280, P.O. Box 2985, Madison, WI 53701-2985. Copies of the application form may be downloaded below, in Microsoft Word (.doc) or Adobe Acrobat (.pdf) format.
CONTACT PERSON
Questions concerning the Request for Proposals may be directed to Mary Charnitz of the City of Madison CDBG Office, via telephone (267-0740) or email (mcharnitz@cityofmadison.com).
PROJECT CRITERIA
All proposals will be reviewed for compliance with the following criteria, which are based on the TIF Set-Aside Program Protocols adopted by the Common Council on December 3, 2002.
All applications for TIF set-aside funds must include identification and site control of a specific site within the eligible district.
All properties proposed for TIF assistance shall pay ad valorem taxes.
A dwelling unit shall be defined as an
"affordable unit" where the tenants/owners are at target median income and pay no more than 30% of gross income for rent or Principal, Interest, Taxes and Insurance (and condo or homeowner association fees if applicable), respectively. The period of affordability shall be the
greater of 20 years or life of the tax incremental finance district.
Rents for the affordable units cannot exceed the current Section 8 Fair Market Rent for the unit size, as determined by the Federal Department of Housing and Urban Development. The sole exception to this rent level is the
"exception rent" approved by the Community Development Authority for those units that have an approved Section 8 voucher holder, meet Section 8 Housing Quality Standards, and are specifically located within an
"exception rent" neighborhood designated by the Community Development Authority.
Affordable
homeownership housing units shall be targeted to households who have not owned a home or property within the last three (3) years, except for individuals who qualify as displaced homemakers or who are dividing their household as a result of divorce or dissolution of a City registered domestic partnership.
All projects must meet the “but for” criteria, which would certify that if not for the TIF funds the project would not occur.
A minimum of 85% of TIF funds must be used for hard costs, such as construction costs, soils/site preparation, landscaping, etc.; 15% may be used for soft costs related to the capital improvements, development, or construction of the assisted unit(s). All TIF-covered costs must be demonstrated to be reasonable and comparable to the construction of other similar developments.
The project may not exceed a 90% loan-to-value ratio, based upon the post-improvement value of the assisted unit.
All TIF Set-Aside funds must be expended
5 years prior to the termination date of the TIF district.
All projects must be TIF eligible.
Contractor must pay its employees in accordance with the City of Madison Living Wage Requirements. City of Madison Prevailing Wage Requirements apply to all construction related portions of the project.
Contractor will be responsible for maintaining insurance consistent with City of Madison requirements.
Contractor will be required to comply with the City of Madison Affirmative Action requirements.
PROJECT PRIORITIES AND PREFERENCES
Homeownership Projects
Priority for 80% of the funds will be given to projects that construct new owner-occupied housing or convert existing units to owner-occupied units. Priority for 75% of these funds will be given to projects that create homeownership opportunities for households with incomes at or below 80% of the county median income. Preference will be given to projects that convert rental units on Allied Drive south of Lovell Lane to owner-occupied units. Units which may be part of the Department of Transportation Verona Road project will not be eligible for funding.
Rental Projects
Priority for 20% of the funds will be given to projects that rehab existing affordable rental housing. Priority will be given to projects that rehab existing rental housing for households with incomes at or below 50% of county median income. Units which may be part of the Department of Transportation Verona Road project will not be eligible for funding.
Household income verifications will be required to determine eligibility for affordable housing created through this proposal.
LOAN TERMS
The term of the direct TIF assistance shall be a forgivable loan for the "period of affordability". If the rental housing is sold or changes use from the original agreement prior to the end of the period of affordability, then the developer/owner shall pay to the City an amount equal to the amount of the original TIF investment (plus the "equity participation" detailed below). For owner-occupied housing developed for sale to low-income buyers, the term of repayment for the developer will be transferred to the homebuyer, and to successive generations of income-eligible buyers until the end of the original period of affordability.
In addition to the original loan agreement and amount, the City will require the developer to enter into a developer agreement to pay to the City, upon sale or transfer of the assisted property during the period of affordability, a portion of the appreciated value that is determined by the percent that the TIF funds represent in the property. In the case of resale by an individual income-eligible buyer during the period of affordability, the City may transfer the equity participation amount due from the pre-20 year sale into financing for the next income-eligible buyer with the terms of repayment equal to the pro-rated appreciated value of the equity participation.
REVIEW PROCESS AND CRITERIA FOR SELECTION
The CDBG Office staff and the Allied TIF Set-Aside Ad Hoc Committee will evaluate proposals based upon the following criteria:
Responsiveness of the proposal to the identified priorities and preferences.
Quality of the proposed project (project feasibility, project design, comprehensiveness in addressing needs and innovative approaches).
Cost effectiveness and appropriateness of budget.
History of project performance (quality of work, efficiency, past accomplishments).
Organizational capacity (staff expertise, financial capacity, administrative compliance).
The City’s TIF Coordinator will review proposals for eligibility. Recommendations for funding will be forwarded for approval to the Board of Estimates and the Common Council.
PROJECT NEGOTIATIONS
The City reserves the right to accept or reject all or a portion of a proposal, or may negotiate for different elements within a proposal in order to accomplish City goals or obtain better terms than offered in the submitted proposals.
REPORTING REQUIREMENTS
The Contractor will be required to submit periodic reports on the project for the term of loan. Due dates and specific requirements will be established with the loan agreements.
SUBMITTAL OF APPLICATION
A complete application and 10 additional copies must be submitted to the CDBG Office. Application form is available for download below.
FOR FURTHER INFORMATION
PLEASE CONTACT MARY CHARNITZ AT THE CDBG OFFICE AT 267-0740.
FORMS
Forms are available in electronic format by clicking on one of the links below:
Proposal Application:
Allied TIF District Affordable Housing Projects
To download, right-click on desired Word or PDF link below and
select either
"Save Target As ..." or "Save
Link As ...".
| Request for Proposals: | 
Microsoft
Word format |
PDF
format |
| TIF Application: |
Microsoft
Word format |
PDF
format |
