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PRHSPSC PKT 03-08-2011 Addendum r ; COUNCIL MEETING DATE: March 15, 2011 ITEM #: CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: NEIGHBORHOOD STABILIZATION PROGRAM 3 — REQUEST FOR PROPOSALS POLICY QUESTION: Should the City Of Federal Way submit a proposal to State of Washington Department of Commerce to capture Neighborhood Stabilization Funding from round 3. Whereby forming a partnership with Habitat for Humanity Seattle/King County which will enable the city to further stabilize and revitalize neighborhoods who continue to be damaged by the economic effects of properties that are foreclosed, abandoned or vacant? COMMITTEE: PRHS &PS MEETING DATE: March 8, 2011 CATEGORY: ® Consent ❑ Ordinance ❑ Public Hearing El City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: DEPT: Attachments: • Memorandum to PRHS &PS Council Committee dated March 2, 2011 • State of Washington Department of Commerce Request for Proposals — NSP3 • Census Tract Maps Options Considered: 1. The City of Federal Way will partner with Habitat for Humanity Seattle/King County to submit a proposal requesting funds necessary to recapture necessary housing units recognized by HUD because the City Of Federal Way is well -known by Department of Commerce and HUD as a targeted area with a score of 13.4 and 13.0 in two of the census tracts (300.02 & 303.03) within the city limits. 2. The City Of Federal Way will not submit a RFP for the NSP3 funding from Department of Commerce. 3. Other: STAFF RECOMMENDATION: Staff recommends option 1 MAYOR'S APPROVAL: O DIRECTOR APPROVAL: /�� Committee Council ommittee Council COMMITTEE RECOMMENDATION: I move to forward option 1, as written and recommended by staff that the City Of Federal Way will partner with Habitat for Humanity to submit an RFP for the NSP3 funds available to the city based on the identified high needs /risk our two census tracts face within the city limits. This request is moved forward to the March 15, 2011 consent agenda for approval. Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: "I move approval of " (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) COUNCIL ACTION: ❑ APPROVED COUNCIL BILL # ❑ DENIED 1ST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 08/12/2010 RESOLUTION # CITY OF Federal Way MEMORANDUM TO: Parks, Recreation, Human Services and Public Safety Council Committee FROM: Lynnette Hynden, Human Services Division Manager DATE: March 2, 2011 RE: Request for Proposal for Neighborhood Stabilization Program 3 (NSP3) BACKGROUND In September 2010, the US Department of Housing and Urban Development (HUD) awarded an additional $1 billion dollars to the states. This is the third round of Neighborhood Stabilization recovery program dollars. As you recall, the City Of Federal Way accepted the NSP1 dollars and as a result recaptured 11 houses that were vacant and foreclosed. Neighborhood Stabilization Program 2 dollars were not available to the State of Washington. We are now recognized as a state to receive $5,000,000 in federal funds under NSP3. The State of Washington Department of Commerce is the recipient of the dollars and will be allocating funds to the identified high risk areas throughout the state via a RFP process. NSP3 RFP Process: The NSP3 funds are to be allocated to the determined areas that have the greatest need in the state. The City Of Federal Way is within that group of areas, specifically census tracts 300.02 and 303.03. For the past three years the City Of Federal Way has seen on average well over 250 completed foreclosures of housing units per year. These homes are vacant or bank owned, but in any case it is proven that foreclosure activity in neighborhoods destabilize and aid in more rapid deterioration of the community. The NSP funds are a tool to assist in stabilizing the community and recapturing the high risk vacant housing. The City Of Federal Way Human Services Divisional staff has identified a partner in Habitat for Humanity that can assist in the development on an action plan to recapture the housing stock in the specified areas of concern, but first we need to submit a proposal as outlined in the attach RFP announcement. There is a very short turnaround for submitting the proposal that would benefit the City Of Federal Way. There are 25 jurisdictions within the State of Washington that on the surface qualify and subsequently been invited to apply for the NSP3 funds. Four of the jurisdictions are within King County; 4 are in Pierce County; 6 in Eastern Washington and finally the remaining 11 are divided between North of Seattle or South of Tacoma along the 1 -5 corridor. The jurisdiction must have a "need score° above 9 to be accepted for review and the City Of Federal Way has need scores of 13.4 and 13.0 for their two identified census tract areas. Timeline The RFP was released on February 28, 2011. Proposals are due to the Department of Commerce no later than April 14, 2011. The jurisdictions will be notified of their awards in May, 2011 and Department of Commerce will submit the Action Plan Application /Amendment to HUD by end of June, 2011. It is currently estimated that final fund awards will be allocated to the state by HUD in July /August 2011. Approximately 30 -days after the state receives the funds, they will be executing the NSP3 grants out to the jurisdictions selected. SUMMARY: The Neighborhood Stabilization Program which has been embedded in federal stimulus legislation since 2008 is another layer of programming that while on the surface seems like an opportunity to seize, is a complex program to administer. The city has utilized these funds in the past under the NSP1 allotments. The program at that time had more options than the NSP3 proposal does today. Also, taking on the prospect of receiving and implementing these funds is not accounted for within the current staffing levels of the Human Services Division, however, joining with a non - profit developer such as Habitat for Humanity that has already been successful in our community with such projects as Westway is very beneficial to the division. In addition, the NSP3 funds will also provide an allotment for administrative costs to ensure staffing levels are appropriate to perform the requirements of the funding criteria. Without the already established partnership between the City of Federal Way Human Services Division staff and Habitat for Humanity Seattle /King County, exploring this opportunity with such short timelines would not be possible. RECOMMENDATION: Staff would recommend that at this time council approves the exploration and execution of a proposal to be submitted by the City Of Federal Way in conjunction with Habitat for Humanity, partnering to achieve successful implementation of the NSP3 funding from HUD via Washington State Department of Commerce. If the city were to be awarded the funds, a more in -depth analysis will be provided to council to assess the feasibility of achieving what will be required under the agreement before a contract is executed. There are no costs, other than staff time, associated with this partnership. The potential benefits from examining this opportunity far outweigh the risk of remaining silent on the invitation to submit a proposal for NSP3 dollars. Options Considered: 1. The City of Federal Way will partner with Habitat for Humanity Seattle/King County to submit a proposal requesting funds necessary to recapture necessary housing units recognized by HUD because the City Of Federal Way is well -known by Department of Commerce and HUD as a targeted area with a score of 13.4 and 13.0 in two of the census tracts (300.02 & 303.03) within the city limits. 2. The City Of Federal Way will not submit a RFP for the NSP3 funding from Department of Commerce. 3. Other: Thank you in advance for your consideration and if you have any questions, please do not hesitate to contact me. ii Department of Commerce %tw6S v Innovation is in our nature. REQUEST FOR PROPOSALS Neighborhood Stabilization Program 3 February 28, 2011 Section 1. Background & Introduction In September 2010, the U.S. Department of Housing and Urban Development (HUD) awarded an additional $1 Billion in funding to all states and local communities struggling to reverse the effects of the housing foreclosure crisis. These grants represent a third round of funding through HUD's Neighborhood Stabilization Program (NSP), also known as NSP3. Washington State Department of Commerce (Commerce) was allocated $5,000,000 in federal funds through NSP3. These NSP3 funds, as authorized under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010, are to be used to further stabilize and revitalize neighborhoods whose viability has been, and continues to be, damaged by the economic effects of properties that have been foreclosed, abandoned, or vacant. HUD generally is treating NSP3 funds as a special allocation of Fiscal Year 2010 Community Development Block Grant (CDBG) funding, thus CDBG regulations apply to NSP3, as well. For the complete NSP3 statutory and regulatory provisions, refer to pages 64322 -64348 in the Federal Register /Vol. 75, No. 201 /Tuesday, October 19, 2010 /Notices, which can be accessed at: http: / /hudnsphelp.info/ media / resources /NSP3FederalRegisterNotice October192010.pdf. Commerce, as a HUD NSP3 grantee, is required to target its allocated NSP3 funds to one or more areas of greatest need in the state of Washington. HUD has determined the areas of greatest need (or "target areas ") by census tracts around the country. NSP3 must target the areas that are located in the top 20% of the foreclosure needs scores in the state, and NSP3 projects must meet or surpass the minimum impacts identified for each of the target areas. For more details refer to HUD's "Foreclosure Need Website" at http: / /www.huduser.org/portal /datasets /NSP.html. Commerce is publishing this Request for Proposals (RFP) on February 28, 2011, to solicit proposals for NSP3 grant funding for projects promoting the stabilization and revitalization of neighborhoods located in the areas of greatest need in Washington State. The total amount of NSP3 funds available for projects is $4,750,000. (Commerce is retaining 5% of the state allocation for its internal administrative and planning activities.) The minimum NSP3 funding amount the applicants can request for a project is $500,000. Commerce will not be liable for any costs incurred by the applicants in preparation of a proposal submitted in response to this RFP or any other activities related to responding to this RFP. This RFP does not obligate the state of Washington or Commerce to contract for services specified herein. Commerce reserves the right, at its sole discretion, to reject any and all proposals received without penalty and not to issue a grant contract as a result of this RFP. Department of Commerce Page 1 of 12 Innovation is In our nature. NSP3 Request for Proposals Section 2. Applicant & Project Eligibility Eligible applicants for NSP3 funding are the following existing NSP1 recipient jurisdictions: Aberdeen, City of Bellingham, City of Clark County Everett, City of Federal Way, City of Hoquiam, City of Kelso, City of Kennewick, City of Kent, City of King County Kitsap County Lacey, City of Lakewood , City of Pasco, City of Pierce County Seattle, City of Snohomish County Spokane, City of Spokane County Tacoma, City of Toppenish, City of Vancouver, City of Walla Walla, City of Yakima, City of Yelm, City of The NSP3 Target Area table on the following page shows the NSP3 target areas determined by Commerce to have the greatest need in Washington State. Commerce is initially targeting areas with the greatest need for NSP3 funds that have a foreclosure need score of 12 points or higher. Commerce will consider proposals from NSP1 jurisdictions that have a foreclosure need score of at least 9 points, which is the minimum foreclosure need score established by HUD for the state of Washington. Areas with a foreclosure need score that is less than 12 points must use HUD program data to demonstrate that the area has significantly higher than average vacancy rates, subprime rates, foreclosure starts, and deflation rates. Applicants may submit proposals for one or more of the target areas listed in the NSP3 Target Area table or for any other target area in their jurisdiction that they identify to have a great need for NSP3 funding. In order to identify the need scores and the minimum impact housing units for other target areas than the ones listed on the following page, the applicants must use HUD's Mapping Tool provided at http:/ /www.huduser.ore/NSP /NSP3.html. In order for a project to be eligible for NSP3 funding, it must make a significant impact in its neighborhood (target area) and satisfy the following conditions: 1. Minimum Need Score. The project must be located in a target area that has an NSP3 need score of 9 or higher; 9 is the minimum need score established by HUD for the state of Washington. 2. Minimum Impacted Housing Units. The project must recover at least three (3) or the minimum number of impact housing units in its target area, whichever is higher. HUD provides these minimum numbers of impact housing units relative to the number of properties that need to be recovered in order to make an impact on a neighborhood (based on the number of REOs in the target area). 3. Readiness to Proceed and Complete the Project. The proposal must demonstrate readiness to proceed with the ability to spend 50% of the NSP3 funds in 24 months (approximately July 2013) and 100% of the NSP3 funds in 36 months (approximately July 2014). Note: HUD requires that all NSP3 projects spend 50% of the NSP3 funds within 24 months and 100% of the NSP3 funds within 36 months of the date HUD executes the NSP3 grant agreement with Commerce. For NSP3 purposes, spent funds mean costs were incurred to purchase a property or pay for a contractor. Even if a project is awarded funds, Commerce reserves the right to withdraw all or part of the awarded funds and reallocate them to another project if the awarded project is not making progress towards meeting the two spending deadlines. Department of Commerce Page 2 of 12 Innovation is in our nature. NSP3 Request for Proposals 4. NSP3 Set -Aside for Low - Income Households /Individuals. The proposal must demonstrate that at least 28% of the requested NSP3 funds will benefit households or individuals earning less than 50% of the area median income (AMI). Since HUD's 25% set -aside requirement applies to all NSP3 funds, including administration; jurisdictions will need to expend 28% of their NSP3 funds for set -aside activities in order to meet the minimum set -aside requirement. 5. Minimum NSP3 Funds Requested. The minimum award under NSP3 will be $500,000. The project's budget must include at least $500,000 in NSP3 funding. NSP3 TARGET AREAS Min # NSP Jurisdiction Target Area Need Score Impact Census Tracts H.U. 1 Clark Washougal 12.7 8 405.07, 405.09 2 Clark/Vancouver Kevanna Park 13.0 4 413.13 3 Clark /Vancouver Orchards - NE 4th Plain 12.0 6 407.06 4 Vancouver Barracks 13.0 10 417,427 5 Kelso Kelso Eastside 13.6 10 10, 11, 13 6 Kelso Longview 13.0 7 5.02 7 Aberdeen Aberdeen 12.0 7 9,12, 13 8 Hoquiam Hoquiam 12.5 7 13,15 9 Federal Way North Federal Way 13.4 26 300.02 10 Federal Way West Federal Way 13.0 24 303.03 11 Kent / King Co Kent - Highline CC 16.0 3 290.04 12 King Co Burien 12.4 24 272, 273,274 13 King Co Des Moines 14.0 4 288.01 14 King Co N.W. Renton 13.0 9 261 15 King Co S.E. Lea Hill 12.0 3 312.06 16 Lakewood Lakewood South 13.6 13 718.05,719.01 17 Lakewood Lakewood Thorne 15.0 7 720 18 Pierce Co Ainsworth - Pierce Co 14.7 11 717.03, 17.04 19 Pierce Co Cedar Avenue 13.0 J 17 717.05 20 Pierce Co Elk Plain _ 13.0 13 731.14 _ 21 Pierce Co Frederickson 12.0 18 731.08 22 Pierce Co Spanaway - 176th 16.0 15 714.09 23 Tacoma Ainsworth - Tacoma 14.8 14 635.02, 717.03, 717.04 24 Tacoma Portland Avenue 15.0 19 620, 621 25 Tacoma Tacoma -So Yakima 12.0 3 614 - - - ---------- - - - - -- - -- - - - - -- - -- - - -- 26 Tacoma Tacoma- Sprague 15.0 14 613 27 Tacoma Tacoma- Sprague South 14.0 24 617 28 Tacoma Tacoma - CT 633 17.0 24 633 29 Tacoma Tacoma - Eastside 14.4 33 623, 624 30 Tacoma _ Tacoma - Lincoln Park 15.0 28 618, 625, 31 Tacoma Tacoma - South Park 15.0 15 629 32 Tacoma Tacoma - Steward Heights 15.0 18 632 33 Tacoma Tacoma - Wapato 14.0 13 631 34 Tacoma Tacoma -South Tacoma 15.0 22 626, 629 35 Everett Everett 13.0 8 405 36 Snohomish Co Marysville 12.0 3 529.03 37 Snohomish Co Sultan 12.0 8 538.02 38 Spokane City East Central Spokane 12.0 3 33 39 Yakima City Yakima 12.0 3 2 A compiled set of maps and details for these target areas can be accessed by visiting Commerce's NSP3 website at: http://www.commerce.wa.gov/site/1360/default.aspx. Departmental Page 3 of 12 Innovation is in our nature. NSP3 Request for Proposals Section 3. Application & Award Process Applicants must submit their complete proposals to Commerce by 5 p.m. (Pacific Standard Time) on Thursday, April 14, 2011 (follow the submittal instructions in Section 5). Proposals that demonstrate making a significant impact on their neighborhoods, that are ready to proceed, and that rank the highest will be selected for funding and publicly announced in May 2011. Proposals will be evaluated and ranked by a review panel consisting of Commerce staff with expertise in neighborhood stabilization, community development, and housing. Preference will be given to proposals that: • address areas of greatest need; • demonstrate readiness to proceed, with a clear plan to spend 50% of the NSP3 funds in 24 months (approximately July 2013) and 100% of the NSP3 funds in 36 months (approximately July 2014); • leverage other funds by demonstrating partnerships and local commitment; • generate or recover more housing units; • generate or recover more rental housing units; • commit a larger percent of their requested NSP3 funds to benefit households /individuals earning Tess than 50% of the AMI; and • encourage vicinity hiring (for the purposes of NSP3, vicinity means the neighborhood identified in the project's target area). In their proposal, applicants must demonstrate a clear readiness to proceed, have capacity to undertake an NSP3 project, address the state's areas of greatest need, and demonstrate an ability to produce the desired impact and results. Proposal evaluation will be based on the applicants' answers to the following scored main categories (detailed contents of each main category are listed in Section 4): Scored Main Categories Max. Points 1. Capacity 15 2. Project Description & Market Analysis 35 3. Project Readiness & Implementation 35 4. Results 15 Total Maximum Points - -� —_ 100 Proposals will be scored and then ranked by their total score from highest to lowest. Grant awards will be made to projects in rank order until the available NSP3 funds are exhausted. Commerce may negotiate funding levels with the successful applicants on a case -by -case basis and may make an offer of funding that is lower or higher than the requested amount. Once projects are selected, Commerce will include them in the final NSP3 Action Plan Application /Amendment for HUD's review and approval (due to HUD on June 30, 2011). After HUD approves this final NSP3 Action Plan Application /Amendment, they will prepare and execute the NSP3 grant agreement in which they will grant the allocated NSP3 funds to Commerce (estimated for July- August 2011). Commerce expects that grant contracts for the selected projects will be executed in approximately 30 days from the date HUD and Commerce execute the NSP3 grant agreement. 0) Department of Commerce Page 4 of 12 Innovations n ournaiule. NSP3 Request for Proposals Section 4. Proposal Format & Content An applicant can submit proposals for more than one project. If an applicant wishes to submit proposals for several projects, the applicant must submit separate proposals for each project and follow the same instructions for format, content, and delivery as described in this section and this RFP. Each proposal must stand on its own; do not refer to responses or statements made elsewhere or in proposals for other projects. In order to submit a complete response to this RFP, the eligible applicants must submit the following items: 1. Letter of Submittal. Along with introductory remarks, the letter of submittal must include the following information: a. Applicant's legal name. b. Applicant's federal Tax ID number. c. Applicant's Data Universal Number System (DUNS) number. d. Applicant's statewide vendor (SWV) number. e. Applicant's Central Contractor Registration (CCR) expiration date (see www.bpn.gov /ccr). f. Applicant's primary contact name, title, phone, email, and mailing address. g. Name, title, phone, email, and mailing address of the legal entity or individual authorized to legally bind the applicant to a contractual relationship. h. Name of the project for which the applicant is applying. i. The eligible use category for the project: Type B— Acquisition and Rehabilitation; Type D— Demolition; or Type E— Acquisition and Redevelopment. j. Amount of requested NSP3 funding (must be at least $500,000). Note: The letter of submittal will not be scored. 2. Certifications & Assurances Form (found on the last page of this RFP). The Certifications & Assurances form must be signed and dated on or before April 14, 2011, by the person authorized to legally bind the applicant to a contractual relationship. The Certifications & Assurances form will not be scored, but failure to submit this form with an original signature, as instructed in Section 5, will disqualify the proposal. 3. Proposal. The proposal must not exceed 12 pages (8.5" x 11 ") and must be typed in a minimum of 12 point font. Any page over the 12 -page limit will be discarded; only the first 12 pages of the proposal will be considered in the evaluation process. The proposal must follow the outline listed below in this section and must respond to all the main categories and subcategories therein. To ensure that all items are addressed, proposals should use the same headings /titles as the main categories and subcategories headings listed in this section. Proposals that do not address all the main categories and subcategories identified in this section will be considered incomplete and will not be reviewed and evaluated. 4. Evidence of Other Funding Sources. If your project includes local funding sources (such as local government funds, non -NSP federal grants, state or private grants or loans), attach documentation evidencing that funds are either in hand, committed, or awarded. (This documentation will not count towards the 12 -page limit for the proposal and may include award letters, grant or loan contract face - sheets, partnership agreements, local government resolutions, etc.) 0 Department of Commerce Page 5 of 12 innevatron ^ 00, nItt0e. NSP3 Request for Proposals PROPOSAL OUTLINE, MAIN CATEGORIES, AND SUBCATEGORIES: A. Capacity (max. 1.5 points) 1. Applicant's Capacity. Describe the applicant's capacity and track record to implement /administer one or more neighborhood stabilization programs or projects. Describe any experience /expertise that your organization has with other HUD programs, such as CDBG, NSP, or HOME Investment Partnerships Program. 2. Partnerships. Describe any partnerships or local commitments made for your project. If you are planning to subcontract with another entity to carry out the NSP3 project, describe that entity's capacity and experience. Indicate the current status of the partnership(s), e.g., partner(s) committed, under contract, under negotiations, etc. 3. Leveraging Other Funds. Identify other funding partners and the status of their funding (funds must be in hand, committed, or awarded). Identify any local funding committed to the project. While local or partner funding is not required, it is strongly encouraged and will be a factor in your proposal's evaluation. Make sure to attach documentation evidencing the other funding sources and their status. B. Project Description & Market Analysis (max. 35 points) 1. Target Area and Need Score. Indicate the target area (i.e., where the project will be implemented) and its need score. Include the census tract number(s). Use HUD's Mapping Tool provided at http: / /www.huduser.org/NSP /NSP3.html to determine the area for which you are applying. Ensure that the need score for your target area is 9 or higher. 2. Project Description. Briefly describe the scope of the project and your plans to implement it. Describe the role of partners and /or subcontractors, if any. Projects may be new or projects may be the completion or expansion of an existing site- specific NSP project. Explain whether the project implements a new initiative or continues an NSP project that is already in progress. 3. Market Conditions Assessment. Describe the housing market in the target area. Present the volume and types of housing for sale or rent at this time. Your response should include information regarding sales and /or rental prices. Include data about vacancy rates, particularly long term vacancy rates, and absorption rates, or the average number of weeks to sell property in the area. If applicable, provide information about the density and /or location of foreclosed and /or abandoned housing units. If the properties are located near each other, describe any physical, environmental, and /or geographic characteristics that might cause the properties to be distressed. The assessment should also draw conclusions regarding why the target area, or specific regions of the area, has a high foreclosure need score. 4. Market Demand Assessment. Describe the demand for renting and /or owning homes in the target area. Include information about the number and condition of foreclosed and /or abandoned housing units. Identify any trends about residents that are moving into the area, such as income levels, tenure, family size, languages spoken, etc. The assessment should focus on the availability of NSP3- eligible properties within the target area. 5. Proposed NSP3 Eligible Use(s). Describe the types of NSP3 activities proposed for the target area. Identify who will carry-out these activities. For instance, for homeownership activities, describe whether the proposed NSP3 activities will be grantee or buyer driven. For rental activities, indicate whether the property will have a property manager or if the maintenance is the responsibility of the tenant. The description of NSP3 eligible uses should identify the types of assistance that will be offered to homebuyers or renters. For instance, the details regarding lease- purchase options and community land trusts should be outlined. Homeownership assistance programs should describe the types and amount of financial assistance offered to the buyer. Nate: NSP3 eligible activities may NOT include redevelopment of acquired property for nonresidential uses, such as public parks, commercial uses, or mixed residential and commercial uses. Department of Commerce Page 6 of 12 Innovation is in our nature. NSP3 Request for Proposals 6. Target Area Impact. Identify the minimum number of housing units that your project will recover; it must be the higher of three (3) or the number established by HUD for your selected target area, whichever is higher. Explain how proposed NSP3 activities will meet or surpass this minimum threshold. Estimate the level of rehabilitation and /or redevelopment required. Indicate if your plans for these units include assistance to homebuyers or to renters. Forecast the levels of income of the NSP3- assisted homebuyers or renters who will participate in the program. (All NSP3- assisted activities must benefit individuals or families whose income does not exceed 120% of the AMI.) Compare these results to the low- income set -aside requirement (see details in Section 2). Note: The set -aside requirement also applies to the program income. C. Proiect Readiness & Implementation (malc. 35 Points) 1. Project Timeline. Present a timeline for the project. Explain how the NSP3 project is ready to proceed to meet the requirement that the project spends 50% of the NSP3 funds in 24 months (approximately July 2013) and 100% of the NSP3 funds in 36 months (approximately July 2014). 2. Complete Project. Indicate if the project is already underway or if this is a new project. If this is a pre - existing project, explain how the NSP3 funding will result in a completed project. Present a before -NSP3 and after -NSP3 timeline for all phases of the project, describing the impact that NSP3 funding would make on your project. If this is a new project, describe how the NSP3 funds will be used to complete the project on time. In either case, all NSP3 projects must be finished by approximately July 2014. 3. NSP3 Marketing Plan. Outline and explain how properties will be identified, purchased, rehabilitated, or redeveloped, and then resold or rented. The explanation should include information regarding how realtors and lenders will learn about the program and gain access to it. Your answer should explain how homebuyers or tenants will learn about the program and get selected. Homebuyer programs will need to describe the homebuyer counseling that the program will offer /require and how it will be used to screen prospective buyers. Plans for rehabilitation and redevelopment need to explain how contractors will be recruited and selected, including how vicinity hiring will be implemented. Note: HUD requires that each NSP3- assisted homebuyer receives and completes at least eight hours of homebuyer counseling from a HUD - approved housing counseling agency before obtaining a mortgage. 4. NSP3 Risk - Management Plan. Briefly describe the key risks that the NSP3 project may encounter which may jeopardize or impede the success of the program. Describe your strategy for mitigating risks to the success of the project. If applicable, explain how uniform relocation and tenant protection will be addressed. 5. Environmental Review. Briefly explain the process for your project's environmental review. D. Results (max. 15 points) 1. Goals, Outputs, and Outcomes. Describe your goals, outputs, and outcomes for this project, and include specific, measurable steps that will be taken to achieve them. a. Goals are what the NSP3 project will accomplish given the current market conditions, such as attract new residents to a target area, increase home ownership, improve property values, etc. b. Outputs are what the NSP3 project will deliver. Your response must include the anticipated number of vacant housing units recovered, number of homes repaired or constructed, units demolished, and number of people served. c. Outcomes are the intended effects that will result from carrying out the NSP3 project, such as a lower vacancy rate in the target area, reduce homelessness, stabilize population and property values, etc. 2. Affordability. If the project activities produce housing, describe how the design of the activities will ensure continued affordability. Your response should demonstrate that, to the maximum extent Department of Commerce Page 7 of 12 Innovation , :,n our nature. NSP3 Request for Proposals practicable and for the longest feasible term, the sale, rental, or redevelopment of abandoned and foreclosed -upon homes and residential properties will remain affordable to individuals or families whose incomes do not exceed 120% of the AMI. 3. Vicinity Hiring. Describe your plan to encourage vicinity hiring as it relates to implementing this project. For the purposes of NSP3, vicinity means the neighborhood identified in the target area. Note: HUD requires that NSP3 projects, to the maximum extent feasible, provide for the hiring of employees who reside in the vicinity of the project or contract with small businesses that are owned and operated by persons residing in the vicinity of the project. 4. Green Housing Construction and Rehabilitation. If your project involves gut rehabilitation (i.e., general replacement of the interior of a building) or new construction, briefly describe your plan to meet the Northwest Energy Star standards. Northwest Energy Star encourages construction of homes to Energy Star standards specifically designed for the Northwest. These standards meet or surpass the standards for Energy Star Qualified New Homes AND American Society of Heating, Refrigerating, and Air- Conditioning Engineers. Information about Northwest Energy Star standards is available at: http : / /www.northwestenergystar.com. No e: HUD requires NSP3 projects to incorporate energy efficiency and strongly encourages green building practices. For more information refer to HUD's Green Housing Development Guide at: http: / /hudnsphelp.info/ media/ resources/ greenhousingdevelopmentguide .pdf. 5. Sustainability. Explain whether this project will continue the stabilization program in your neighborhood after the NSP3 funding is exhausted (i.e., the NSP3 project is complete). If so, describe how those services will be provided and describe their financial sustainability. Identify ongoing funding sources or partners, if applicable. E. Proiect Budget (not scoredl 1. NSP3 Requested Amount. Identify the requested amount of NSP3 funding for your project. The minimum NSP3 award will be $500,000. 2. Project Cost. Indicate the total estimated project cost and identify all of the components or cost categories taken into your calculation. Ensure that no more than 5% of your requested NSP3 funding is for administrative or planning costs. You are also allowed to use up to 10% of your program income to pay for administrative and planning costs. Note: For details about eligible NSP3 costs, refer to pages 64332 -64333 in the Federal Register /Vol. 75, No. 201 /Tuesday, October 19, 2010 /Notices, which can be accessed at: http: / /hudnsphelp.info/ media/ resources /NSP3FederalRegisterNotice October192010.pdf. In the event that HUD or Commerce recaptures NSP3 funds from an awarded grant, the administration and planning percent allowance will be reduced accordingly. 3. Program Income. Describe any anticipated program income and how it will be managed and used by your project. Explain if and how the anticipated program income was taken into the calculation of your project's budget. For purposes of NSP3, program income means gross income (e.g., total proceeds from the sale of a unit prior to any deductions for closing and /or homeownership assistance) received by a NSP3 recipient, which was directly generated from the use of NSP3 funds. For a more accurate description of what constitutes program income, refer to 24 CFR 570- 500(A). Note: HUD requires that all program income be disbursed for eligible NSP3 activities before additional cash withdrawals are made from the U.S. Treasury for a NSP3 project /program. NSP3 program income must stay in the NSP3 program /project and must be used for additional NSP3 eligible activities. Program income will be subject to all the rules and regulations of NSP3. Department of Commerce Page 8 of 12 tnnov atioo in our n.rtu+ NS P3 Request for Proposals Section 5. How & When to Submit Applicants must ensure that their proposal submittal follows the instructions and outline described in this RFP. Proposals must address all the main categories and subcategories listed in Section 4. Do not respond by referring to material presented elsewhere. The proposal must be complete and must stand on its own merits. All submitted proposals and any accompanying documentation become public information in their entirety, as described in RCW 42.56. TWO -STEP SUBMITTAL PROCESS A complete proposal submittal must include a letter of submittal, a Certifications & Assurances form (with an original signature, dated on or before April 14, 2011), a proposal, and documentation evidencing other funding sources. Step 1. Applicants must email their proposal (in Microsoft Word format), letter of submittal (in Microsoft Word format), Certifications & Assurance form (signed and dated on or before April 14, 2011, and scanned), and documentation of other funding sources (preferably scanned documents) to Corina.GrigorasPcommerce.wa.gov by 5 p.m. (Pacific Standard Time) on Thursday, April 14, 2011. The Subject line of the email must read "NSP3 Proposal ". Emails with "NSP3 Proposal" on the Subject line will receive an automated confirmation receipt email. NOTE: Commerce assumes no responsibility for delays caused by any problems in the email and /or servers. If you do not receive an automated confirmation receipt for your email, please call RFP coordinator Corina Grigoras at (360) 725 -3092, to ensure that your documents have been received. Late submittals will not be accepted and will be automatically disqualified from further consideration. Step 2. The hardcopy of the Certifications & Assurances form with the original signature and dated on or before April 14, 2011, must be mailed to: Corina Grigoras, NSP3 Program Manager Department of Commerce Contracts Administration Unit Neighborhood Stabilization Program 3 1011 Plum Street SE PO Box 42525 Olympia, WA 98504 -2525 Section 6. Questions & Clarifications The RFP coordinator is the sole point of contact in Commerce for this RFP. All communication between the applicant and Commerce upon receipt of this RFP shall be with the RFP coordinator: Corina Grigoras, NSP3 Program Manager Email: Corina.Grigoras@commerce.wa.gov Telephone: (360) 725 -3092 Any other communication will be considered unofficial and non - binding on Commerce. Applicants are to rely solely on written statements /answers issued by the RFP coordinator. All questions and answers will be compiled and added to an "RFP Questions & Answers" document posted on Commerce's NSP3 website at http://www.commerce.wa.govisite/1360/default.aspx. Department of Commerce Page 9 of 12 snnovatlon is in our nature. NSP3 Request for Proposals Section 7. Other Useful Information More information, data sources, and NSP information and publications can be found at the following locations: Commerce's NSP website: http: / /www.commerce.wa.gov /site /1139 /default.aspx Commerce's NSP3 website: http: / /www.commerce.wa.gov /site /1360 /default.aspx HUD's NSP3 Website: http: / /www. hud.gov /offices /cpd /com m unitydevelopment /programs /neighborhoodspg /nsp3.cfm HUD NSP3 Regulations: http: / /hudnsphelp. info / media/ resources /NSP3FederalRegisterNotice October192010.pdf HUD's Mapping Tool: http: / /www.huduser.org/NSP /NSP3.html HUD's NSP Website: http: / /www.hud.gov/ offices / cpd /communitydevelopment /programs /neighborhoodspg / HUD's NSP Data Sets: http: / /www.huduser.org/portal /datasets /NSP.html HUD's CDBG Website: http: / /www.hud.gov/ offices / cpd /communitydevelopment /programs /index.cfm Northwest Energy Star: http : / /www.northwestenergystar.com HUD's Green Housing Development Guide: http: / /hudnsphelp. info / media / resources/ greenhousingdevelopmentguide .pdf Green Building Advisor: http : / /www.greenbuildingadvisor.com USPS Vacancy Data: http: / /www.huduser.org /portal /datasets /usps.html US Housing Market Conditions: http: / /www.huduser.org/portal /periodicals /ushmc.html Policy Maps: http: / /www.policymap.com /maps Foreclosure Data: http:/ /foreclosure- response.org/ U.S. Maps & Data: http: / /gos2.geodata.gov U.S. Census Bureau, American FactFinder: http: / /factfinder.census.gov U.S. Bureau of Labor Statistics: http: / /bls.gov/ Mortgage Bankers Association: http:/ /mbaa.org/ /researchandforecasts National Association of Real Estate Brokers: http: / /www.nareb.com/ National Association of Realtors: http: / /www.realtor.com/ ESRI: http: / /www.esri.com /DATA /free- data /index.html or http: / /www.esri.com /DATA /ESRI DATA/ Central Contractor Registration (CCR): http: / /www.bpn.gov /ccr Department of Commerce Page 10 of 12 Enno :« . OYF ..3<< re. NSP3 Request for Proposals Section 8. Glossary of Acronyms AMI Area median income CDBG Community Development Block Grant (HUD program, NSP's "father" program) H.U. Housing units HUD United States Department of Housing and Urban Development NSP Neighborhood Stabilization Program NSP1 Neighborhood Stabilization Program 1, the first round of NSP funding, as authorized under Section 2301(b) of the Housing and Economic Recovery Act of 2008 NSP3 Neighborhood Stabilization Program 3, the third round of NSP funding, as authorized under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 REO Real estate owned by banks or financial institutions RFP This Request for Proposals Department of Commerce Page 11 of 12 ' ' Innorrtion NSP3 Request for Proposals • CERTIFICATIONS & ASSURANCES Neighborhood Stabilization Program 3 Request for Proposals I /we make the following certifications and assurances as a required element of the proposal to which it is attached, understanding that the truthfulness of the facts affirmed here and the continuing compliance with these requirements are conditions precedent to the award or continuation of the related contract(s): 1. I /we declare that all answers and statements made in the proposal are true and correct. 2. The prices and/or cost data have been determined independently, without consultation, communication, or agreement with others for the purpose of restricting competition. However, I /we may freely join with other persons or organizations for the purpose of presenting a single proposal. 3. The attached proposal is a firm offer for a period of 60 days following receipt, and it may be accepted by Commerce without further negotiation (except where obviously required by lack of certainty in key terms) at any time within the 60 -day period. 4. In preparing this proposal, I /we have not been assisted by any current or former employee of the state of Washington whose duties relate (or did relate) to this proposal or prospective contract, and who was assisting in other than his or her official, public capacity. (Any exceptions to these assurances are described in full detail on a separate page and attached to this document.) 5. I /we understand that Commerce will not reimburse me /us for any costs incurred in the preparation of this proposal. All proposals become the property of Commerce, and I /we claim no proprietary right to the ideas, writings, items, or samples, unless so stated in this proposal. 6. Unless otherwise required by law, the prices and /or cost data which have been submitted have not been knowingly disclosed by me /us and will not knowingly be disclosed by me /us prior to opening, directly or indirectly to any other proposal applicants or to any competitors. 7. I /we agree that submission of the attached proposal constitutes acceptance of the solicitation contents. If there are any exceptions to these terms, I /we have described those exceptions in detail on a page attached to this document. 8. No attempt has been made or will be made by me /us to induce any other person or firm to submit or not to submit a proposal for the purpose of restricting competition. 9. I /we grant Commerce the right to contact references and others, who may have pertinent information regarding my /our organization's prior experience and ability to perform the services contemplated in this proposal. Signature Name Title Legal Name of Applicant Organization Date Department of Commerce Page 12 of 12 �nnovnGan rs .n our nature. NSP3 Request for Proposals Map Date: March 2010 City of Census Tract 300.02 City of Federal Way P.O.Box 9718 Federal Way, Wa. 98063 Federal Way Vi cinity & Street Map (P) 253- 835 -7000 Y (W) www.cityoffederalway.00m !1ST vi �a 3 28T ST ' � m S 2 • .r S 28 '1 s autilus PL Rs ST III hiN Elem. a - r ry Qy > S 288 PL S a feway 268 w " w cuI • t gel < •a • U N. i b . 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