Request for Qualifications and Proposals for No Place Like Home Round 3

Background

On July 1, 2016, Governor Brown signed landmark legislation enacting the No Place Like Home program to dedicate up to $2 billion in bond proceeds to invest in the development of permanent supportive housing for persons who are in need of mental health services and are experiencing homelessness, chronic homelessness, or who are at risk of chronic homelessness. The bonds are repaid by funding from the Mental Health Services Act (MHSA). In November 2018 voters approved Proposition 2, authorizing the sale of up to $2 billion of revenue bonds and the use of a portion of Proposition 63 taxes for the NPLH program.

Key features of the program include:

• Counties are eligible applicants (either alone or with a housing development sponsor)
• Funding for permanent supportive housing must utilize low barrier tenant selection practices that prioritize vulnerable populations and offer flexible, voluntary, and individualized supportive services.
• Counties must commit to provide mental health services and help coordinate access to other community-based supportive services.

Program and Project Objectives

The loss of nearly 5,500 homes in the City of Santa Rosa and Sonoma County as a result of the fire disasters of October 2017 and October 2019 exacerbated an already existing housing shortage, especially for low- and very low-income households.  Sonoma County is also experiencing a severe shortage of Permanent Supportive Housing units that serve those experiencing homelessness, chronically homeless individuals, and those at risk of chronic homelessness.  The Commission and the Sonoma County Board of Supervisors have prioritized production of housing with special emphasis on low- and very-low income households and housing for people experiencing homelessness.

The objective of this Request for Proposals is to identify and select the most qualified Respondents and projects to participate as co-applicants with Sonoma County in the third competitive NPLH funding round to expand the number of Permanent Supportive Housing units serving the Target Population (as defined, below).

Scope of Services

The following section describe the purpose and objectives of the program. Qualified Respondents will demonstrate that they can carry these objectives out successfully.

Purpose

To acquire, design, construct, rehabilitate, or preserve permanent supportive housing for persons who are experiencing homelessness, chronic homelessness and who are at risk of chronic homelessness, and who are in need of mental health services.

Target Population

Adults with serious mental illness, or children with severe emotional disorders and their families and persons who require or are at risk of requiring acute psychiatric inpatient care, residential treatment, or outpatient crisis intervention because of a mental disorder with symptoms of psychosis, suicidality or violence and who are homeless, chronically homeless, or at risk of chronic homelessness.

At risk of chronic homelessness includes persons who are at high risk of long-term or intermittent homelessness, including persons with mental illness exiting institutionalized settings with a history of homelessness prior to institutionalization, and transition age youth experiencing homelessness or with significant barriers to housing stability.

Affordability

The NPLH program units must be affordable at 30% of AMI.

The program guidelines require a Respondent to elect and disclose whether the project will seek to participate in an application to the California Tax Credit Allocation Committee.

Submissions should explain how affordability will be achieved, including sources of financing other than 4% and 9% tax credits.

Collaboration with the Commission

The Commission will consider applications where the Respondent is the Development Sponsor and jointly applies with the County.  A Development Sponsor is defined as an individual, joint venture, partnership, limited partnership, trust, corporation, cooperative, local public entity, duly constituted governing body of an Indian reservation or rancheria, or other legal entity, or any combination thereof, certified by the California Department of Housing and Community Development as qualified to own, manage, and rehabilitate a Rental Housing Development. A Development Sponsor may be organized for profit, limited profit or be nonprofit, and includes a limited partnership in which the Development Sponsor or an affiliate of the Development Sponsor is a general partner.

In both cases, the Commission has an interest in collaborating with the Respondent during the development process and as such will enter into an Exclusive Right to Negotiate Agreement (ERNA) with the selected Respondent during which time the relative roles and responsibilities will be clarified with respect to project approvals and regulatory approvals, financing and development, property management and the lead service provider.

Community Process   

The Commission expects the selected Respondent(s) to pro-actively engage the neighborhood surrounding the subject property, to promote an open communication process, develop an understanding of neighborhood issues, and develop a final project that responds to any pertinent neighborhood concerns. The developer should provide a narrative that describes the planned outreach process and the experience the developer has with this type of process. 

Property Management and Support Services

The Lead Service Provider may be the County, Respondent, or a partner agency.  The Lead Service Provider must have three or more years of experience serving persons in the Target Population.  It must include either experience serving persons in permanent supportive housing, and/or helping persons address barriers to housing stability or providing other support services related to housing retention. 

Respondent Qualifications

Overall Capacity

The Commission seeks Respondents with substantial financial capacity, access to credit, and real estate development experience; property management experience with affordable housing and permanent supportive housing; and experience acting as or partnering with a Lead Service Provider for facilities that serve persons suffering from a serious mental illness who are Chronically Homeless, Homeless or At Risk of Chronic Homelessness.

Financing and Development

Interested parties should submit financial statements and other evidence of bank relationships sufficient to demonstrate financial strength. Respondent should identify any documents that are proprietary, so as to ensure that they are not subject to disclosure as public records.

Lead Service Provider

Respondents should clearly identify the background and qualifications of the Lead Service Provider.

Track Record with Quality Development Projects

Respondents should provide information and descriptions of past development projects, including photographs, sample project data, examples of financial modeling, and how such past projects or buildings have performed since initial construction. Information that clearly demonstrates the ability to execute quickly should be highlighted.

Successful Property Management Experience

The Commission is seeking Respondents with experience effectively managing completed properties, whether in-house or in partnership with a qualified third-party property management company. This includes affirmatively marketing available units to historically under-served and non-English speaking populations, demonstrating a clear commitment to the principals of fair housing, and designing lease requirements to ensure that a peaceful and safe environment is maintained for tenants and neighbors of the property. 

Development Standards and Entitlement

Each Respondent must clearly demonstrate the current zoning, general plan conformance, and entitlement status of the proposed project site that is the subject of their application.  The Respondent shall also present the status of the proposed project with respect to the California Environmental Quality Act (CEQA) and their proposal for securing CEQA clearance.  To the extent that there may be federal funds involved in the project, respondents should also present the status of the project with respect to the National Environmental Policy Act.  

Summary of Respondent and Commission Responsibilities

The Commission and the successful Respondent shall collaborate to compile and submit the NPLH Round 3 competitive application by the published deadline.

Upon successful award from the NPLH, the Commission anticipates that the successful Respondent will undertake the following: 

• Establish an effective and collaborative partnership with the Commission.
• Work collaboratively with the community during the planning and development process.
• Prepare a development plan in collaboration with the Commission, which meets the Commission’s development objectives and incorporates input from the applicable jurisdiction.
• Lead and manage the land use and environmental entitlement process.
• Use existing Commission templates to negotiate and execute a Funding Agreement and a Services Agreement.
• Secure all regulatory permits for the proposed project from local planning and entitlement jurisdiction.
• Close escrow and secure the subject property (in the event that the property is not already owned or controlled by the Respondent).
• Design, permit and construct the improvements including design review and building permit approval from the applicable jurisdiction and other relevant public agencies.
• Provide property management services for the facility.
• Act as the Lead Service Provider or execute an agreement with a Lead Service Provider.

To assist and support the successful Respondent, the Commission shall:

• Work with Respondents to prepare, negotiate, and execute all agreements
• Support the Respondent’s efforts in community outreach, permitting and entitlements and other project activities.

Submission Requirements

General Instructions: 

To receive consideration, proposals shall be made in accordance with the following general instructions

1. The completed proposal shall be without alterations or erasures. 
2. No oral or telephonic proposals will be considered
3. The submission of a proposal shall be an indication that the proposer has investigated and satisfied him/herself as to the conditions to be encountered, the character, quality and scope of the work to be performed, and the requirements of the CDC, including all terms and conditions contained within this RFQ.

Due Date

Proposals must be received by the Commission no later than 2:00 p.m., July 27, 2020 in the following formats: 

• One (1) emailed copy to Darrin O’Hara at darrin.ohara@sonoma-county.org

The due date is subject to change. If the due date is changed, all known recipients of the original RFP will be notified of the new date, and any such changes will also be posted on this page.

For questions or issues regarding the submission of this proposal, please contact:

Darrin O’Hara
darrin.ohara@sonoma-county.org
707-565-7522

Format and Contents

For ease of review and to facilitate evaluation, the Proposal for this project should be organized and presented in the following order:

1. Signed Cover Sheet

2. Proposal Overview

   The proposal should include a description of the conceptual plan of the development being proposed which should include the following:

   • Descriptive narrative, including the proposed resident population being targeted.
   • Appropriate services to be provided by the Lead Service Provider.
   • Conceptual site plan illustrating how development might fit on the site, including unit/building heights for new development.
   • Development size and density.
   • Configuration (type of units) and unit square footages.
   • Property description (for existing buildings or facilities) including square footage, number of bedrooms and bathrooms, number of stories, lot size, etc.
   • Ability to participate in and conform to the State of California’s Climate Initiatives. http://www.caclimateinvestments.ca.gov/
   • Description of how the development will seek to maximize green building methods.  (This may include participation in any recognized environmental certifications or programs.)
   • Proposed process for obtaining community support and/or undertaking community design process.
   • Development timeline, and strategies to expedite delivery of the Project.

   The proposal should also include the following detailed information:

   • Development sources and uses budget.
   • Projected operating pro forma.
   • If a density bonus or any other condition is proposed, please clearly explain how this would affect your project proposal
   • Property management approach and experience, including fair housing affirmative marketing strategies.
   • Lead Service Provider approach

3. Financing Plan, Cost Assumptions and Project Economics

   • The proposal should include all funding sources and amounts of funding anticipated to be used to develop the project (and information regarding restrictions on such funds).  Sources should include permanent financing, owner equity, 4% and 9% tax credits, other public funding sources.
   • Indicate what other funding sources, including any federal, state or local funding which can be accessed to create additional affordable housing.  Describe in detail the timing and implementation of these funds.
   • Detail the projected costs for the following (provide detailed data from other similar projects in Sonoma County or the nearby vicinity, currently under development to substantiate the viability of these financial projections):
     • Construction costs
     • Soft development costs
     • Other costs.

4. Project Affordability

   • Indicate the mix of affordable and market rate units using the following format:

   	30%
   Studio
   1 Bedroom
   2 Bedroom
   3 Bedroom

5. Organizational Information

   • Provide specific information concerning the applicant organization, including the legal name, address and telephone number, and the type of entity (sole proprietorship, partnership, or corporation and whether public, non-profit or private). Include the name and telephone number of the person(s) in the company authorized to execute any proposed agreement, and designate a person to be the point of contact for the Commission for this process.
   • Identify the development team that will be assigned to this project, including proposed developer partners, architect and engineers, general contractor, property management firm, financial consultant, and legal counsel.
   • Debarment or other disqualification: Disclose any debarment or other disqualification as a vendor for any federal, state or local entities. Describe the nature of the debarment/disqualification, including where and how to find complete information on any such debarment or disqualification.

6. Qualifications

   •  Resume(s) of key personnel who will be assigned to work on this development project showing relevant professional qualifications. Include references or letter of recommendations that address these qualifications if applicable.
   • Specific information concerning the organization's experience in the development of similar properties (i.e., mixed-income, multifamily housing). If available, provide examples of projects developed in partnership with public agencies.
   • Pipeline of all other development projects the company has currently underway, and an organizational chart demonstrating how this project would be staffed and managed.

7. Disclosure of ongoing litigation

   •  Please clearly describe any ongoing litigation involving your organization.
   • The nature of ongoing litigation will be weighed on a case-by-case basis and may be taken into consideration in the evaluation of your proposal.

Timeline

Pre-Submission Conference
Respondents are invited to attend an optional tele-conference scheduled on June 16 from 2-4 p.m. The tele-conference will be hosted on WebEx 

Web:  https://bit.ly/NPLHSonoma

Audio Connection: +1-408-418-9388  (CoS WebEx)
Access Code: 962 154 483

If Respondents have any additional questions following the conference, they must be submitted in writing before June 22, 2020 at 5:00 PM in order for staff to prepare written responses. Written questions and answers will be shared with all potential respondents through an email notification from the Commission. Please e-mail questions to Darrin O’Hara at darrin.ohara@sonoma-county.org.  Questions will not be accepted by phone.

Selection Criteria

All proposals received by the specified deadline will be reviewed by the Commission for content, including but not limited to fee, related experience and professional qualifications of the bidding consultants. 

All proposals received by the specified deadline will be reviewed by the Commission for content and completeness using the following scoring criteria: