Barbara Jordan II Community Engagement

Barbara Jordan II Request for Proposals

November 1st, 2019

In June of 2019, RIHousing issued a Request for Proposals (RFP) for the Designation of a Developer(s) for Barbara Jordan II Apartments. In response to the RFP, RIHousing received 6 proposals.

Brief Synopsis of Proposals

Dakota Partners

Dakota proposes the rehabilitation to each existing structure, to preserve the existing 74 units which will be restricted to households earning at or below 60% AMI. Dakota’s plan calls for maintaining the current unit mix, the unit distribution and layouts “as is”.

 

Omni America LLC

Omni’s proposal calls for the substantial rehabilitation of 95 units.  Specifically, the Development Team is proposing that the existing 6-bedroom units be configured into two 2-bedroom units and the 5-bedroom units be reconfigured into a 1-bedroom unit and a 2-bedroom unit, thus increasing the overall unit count of the project.    All the units will be restricted to households earning between 30% and 60% AMI. 

 

Omni Development Corporation/WINGATE

A joint venture partnership between Omni Development and WINGATE are proposing the demolition of the existing structures and replace with new construction. Their plan calls for 83 units in total, 4 units will be homeownership opportunities available for residents earning up to 100% AMI, the remainder will be affordable rental units restricted to households earning between 30% and 80% AMI. 

SWAP

SWAP’s proposal calls for a 78-unit development, consisting of new construction and rehabilitation of existing structures.  Specifically, SWAP’s redevelopment plan calls for four two-family homeownership opportunities, four rental units in the two-family houses, and 70 affordable rental units.  All of the rental units will be restricted to households earning between 30% and 80% AMI.

 

Trinity Financial

Trinity’s proposal calls for a 101-unit development split across two (2) phases, consisting of new construction and rehabilitation of existing structures.  Within the first phase project, 45 units will be constructed in a new three-to-four-story building and the remaining 29 units will be located in ten remaining/existing rehabilitated buildings.  The second phase will consist of 27 units located in eight rehabilitated existing buildings.  All 101 units will be restricted to households earning between 30% and 80% AMI.

 

Winn Development

Winn Development and Crossroads Rhode Island are partnering to undertake rehabilitation of the 27 existing structures and preserving 74 rental apartments for households.  The Development Team’s proposal calls for a mixed-income rehabilitation project with units restricted to households earning between 30% and 80% AMI.

Selection Process

RIHousing reserves the right to contact references and industry sources, investigate prior projects and current commitments, interview some or all of the references, visit some or all of the developments cited and take any other information into account in our evaluation of the responses.  RIHousing also reserves the right to request clarification or additional information from Respondents that may be used in the evaluation of responses.

Upon completion of the proposal evaluation, RIHousing may or may not select one or more firms to invite to an oral interview.  The purpose of the oral interview is, at a minimum, to further assess the strength of the Respondent’s proposal and its proposed Development Team, and to verify Respondent’s commitment to their responses to RFP.

The highest rated team will be selected to negotiate a redevelopment agreement.  If RIHousing and the team are unable to successfully negotiate the terms of a definitive agreement, RIHousing reserves the right to contact the next highest ranked firm to enter negotiations.

Timeframe

RIHousing staff and its Advisory Committee will work diligently to complete evaluation of proposals. At this time, it is anticipated that a recommendation on the selection of a designated developer for the redevelopment of Barbara Jordan II Apartment will be brought to RIHousing’s April 2020 Board of Commissioners meeting.

Key Target Dates*

  • Proposal Deadline – September 13, 2019

  • RIHousing Staff Proposal  Review – Complete – January 2020

  • External Committee Review and Project presentations – February and March 2020 

  • Recommendation to RIHousing Board of Commissioners – April 2020

*Please note these dates are subject to change. Updates to the schedule will be communicated to Respondents via email and updated on this page.

Project Based Voucher Guidance & FAQ provided by the Providence Housing Authority

The Providence Housing Authority (PHA) has provided the following guidance and FAQ for potential developers responding to the RFP. All questions and concerns regarding this document should be referred to PHA.

Questions Received via Email

Friday, August 30, 2019 – Updates to the Q&A

32. Q: Assuming tax credit equity as a funding source, will RIHousing require additional financial guarantees beyond the traditional guaranties such as a completion guarantee, payment and performance bond, etc?
A: Yes, RIHousing requires all proposals include a letter of credit or other alternative approach (s) sufficient to cover acquisition costs.  Moreover, if an operating reserve is needed to cover anticipated shortfalls in meeting RIHousing’s debt service coverage requirements, the developer will be required to provide cash or letter of credit in the amount of the operating reserve.  In the case where the developer is proposing resident programming and/or services, developer should provide cash or letter of credit in an amount to cover said programming.

Tuesday, August 20, 2019 – Updates to the Q&A

31. Q: We have our own REO schedule put together. Do we also need to fill out the template included in the RFP, or can we submit our own template?
A: You may submit your own REO schedule template as long as at a minimum the information required on RIHousing’s template is included in your schedule. The REO schedule should include all property owned, regardless of status (ex. still under construction, etc.)

Friday, August 16, 2019 – Updates to the Q&A

 

30. Q: Is there a cost estimate or budget for the project?
A: No

31. Q: Will there be any union labor requirements?
A: It will depend on the funding resources used to finance the development.

32. Q: Is there an estimated start date for work to begin?
A: No

33. Q: Do you have building plans available to share?  If not, would it be possible to get back on site with our architects?
A: Due to liability and health and safety concerns there will not be any access to the property outside of tour date held June 28.

34. Q: What is the significance of the December 2021 deadline and what result or penalty will be incurred by the development team if the units are deliverable after this deadline?
A: RIHousing anticipates some flexibility with HUD around the completion date, but there is no flexibility on the number of units or income targeting.  HUD will not unnecessarily withhold extension requests to the construction completion deadline of December 2021, provided the selected developer submits a final Redevelopment and Financing Plan to HUD and RIHousing for approval. 

 

Friday, August 9, 2019 – Updates to the Q&A

 

29. Q: If a developer secures Project Based Section 8 Vouchers, will they be required to pay prevailing wages for the construction of the project?
A: Per the Providence Housing Authority (PHA), if an agreement covers the development of nine or more contract units (whether or not completed in stages), the owner and the owner’s contractors and subcontractors must pay Davis-Bacon wages to laborers and mechanics employed in the development of housing. The HUD-prescribed form of the Agreement will include the labor standards clauses required by HUD, such as those involving Davis-Bacon wage rates [24 CFR 983.154(b)]. For additional information regarding the project based vouchers, please see the Project Based Voucher guidance and FAQ, provided by Providence Housing Authority.

30. Q: What are the income/sales price requirements for a household of four at 80%, 100% and 120% of the area median income (AMI) to purchase a home or condominium in Providence?
A: Income for a household of four (Per U.S. Department of Housing and Urban Development):
     80% AMI: $65,520

100% AMI: $81,900
120% AMI: $98,280

 Sales price requirements:

Typically, the sales price of a deed-restricted affordable home is determined based on bedroom size along with several other factors, including income level eligibility, current interest rate, taxes, and condo fees, if applicable. Please see RIHousing’s purchase price calculator (link here) where you can determine the maximum sales price of an affordable home.

Tuesday, August 6, 2019 – No updates to the Q&A

Friday, August 2, 2019 – Updates to the Q&A

25. Q: Could you provide clarity on how you get the full five points for the following bonus points?: “Homeownership and rental housing, public space and/or mixed-use buildings.” 
A: In order to get the full five points, your proposal must include homeownership AND rental housing, plus a non-housing component, such as public space and/or buildings with mixed-uses.

26. Q: Our proposal will be submitted by a joint venture. One partner is a private corporation and their current financial statements are not audited. Will this be an issue?
A: No. However, RIHousing reserves to right to request additional information to help determine the financial health of the joint venture partner.

27. Q: Does RIHousing require a Letter of Credit with the proposal, or just a commitment for one?
A: RIHousing requires all proposals include a Letter of Credit.

28. Q. Does RIHousing require the developer to provide a Letter of Credit to cover operational expenses over the 15-year compliance period? 
A: RIHousing requires all proposals to meet RIHousing’s published debt service coverage requirements (see Developer’s Handbook) over the 15-year Low Income Housing Tax Credit compliance period. If debt service coverage is not achievable throughout the compliance period, the developer will be required to capitalize an operating reserve to cover anticipated shortfalls in meeting our debt service coverage requirements. In this case, the developer will be required to provide cash or Letter of Credit in the amount of the operating reserve.

Tuesday, July 30, 2019 – No Updates to the Q&A

Friday, July 26, 2019 – Updates to the Q&A

24. Q: Through what method of electronic submission should proposals be submitted?
A: Proposals must be submitted electronically via email to bwhite@rihousing.com in Adobe PDF format or Microsoft Office files (word, excel). Please see page 2 in the Request for Proposals for full submission requirements.

Tuesday, July 23, 2019 – Updates to the Q&A

23. Q: Can we access the title insurance policy for Barbara Jordan II?
A: Yes. Please see www.rihousing.com/barbarajordan2 for a link to the policy. Please note that this title policy does not purport to show the status of title after June 22, 2018.  The title policy is for informational purposes only and should not be relied on by any party but the insured.  The title policy is not transferable and Rhode Island Housing Development Corporation (RIHDC) is the only insured under the title policy. 

Friday, July 19, 2019 – No Updates to the Q&A

Questions Received on or Before June 28

17. Q: Will there be access to the property outside of the June 28th tour?
A:  No.

18. Q: Will RIHousing be sharing information on the units with bedroom count?
A: Yes. This information is posted on www.rihousing.com/BarbaraJordan2.

19. Q: How do I sign up to live in one of the units at Barbara Jordan II?
A: Barbara Jordan II is currently vacant and unavailable for occupancy. If you are in need of housing please see RIHousing’s rental resource guide, which has a list of all subsidized developments in the state and information on how to apply. Click here to access the guide.

20. Q: Is there a description of the general condition of each building?
A: Please see www.rihousing.com/BarbaraJordan2 for a list of properties and their general condition.

21. Q: Will ancillary financing funds be available for the project?
A: No funds are specifically earmarked for this project, but developers are encouraged to apply for ancillary financing as needed.

22. Q: If proposing to renovate the existing buildings, is it possible to get a waiver on schematic plans and elevations?
A: No. We will need at least a few sample elevations and typical floor plans to understand what developers are trying to achieve.

Questions & Answers from the Q&A held at RIHousing on June 28th

  1. Q: How long has Barbara Jordan II been vacant?
    A: The last tenant left the property in January 2017. Prior to that, there were a number of units that were vacant and had been vacated over time as the Providence Housing Authority could relocate the tenants. RIHousing took possession of the property from HUD in June 2018.
  2. Q: Can you clarify the points awarded in the RFP scoring matrix for Rhode Island-based general contractors versus the bonus points?
    A: There are 5 (five) points for Rhode Island-based construction firms with a minimum of 10% MBE/WBE utilization rate and an additional 5 (five) points for Rhode Island-based construction firms with a minimum of 50% MBE/WBE subcontractor contracts.
  3. Q: Can you clarify the schedule and decision-making timeline? 
    A: While we anticipate a decision being made on or about January 2020, RIHousing will clarify the timeline once we have seen the volume of applications. As to the overall schedule for the project, as part of our contract with the U.S. Department of Housing and Urban Development (HUD), the final development and financing plan for the properties must be submitted and approved by RIHousing and HUD by June 2020. All of the one for one replacement units must be completed by December 2021.
  4. Q: The scoring matrix in the RFP notes points that are driven by the schedule. Can we get clarity on the various benchmarks for the project? How do you select the developer based on the proposed schedule?
    A: The points provided in the scoring matrix are not based upon a delivery schedule. Rather the points relate to 1) the projected cost of the development; 2) a developer’s commitment to serve extremely low-income households; 3) use of RI based construction firms; and 4) commitment to long-term affordability.
  5. Q: Is there any flexibility with HUD around the deadline of December 2021, the number of units to be replaced, or the income targeting?
    A: While there may be some flexibility with HUD around the completion date, there is no flexibility on the number of units or the income targeting.
  6. Q: Can you explain the engagement process that took place for the residents that were relocated?
    A: The Providence Housing Authority has been coordinating with the 34 tenants that were residing in the property and relocated offsite. There is a commitment to improving that coordination and making every effort to engage relocated residents in this process.RIHousing strongly encourages the successful developer(s) to collaborate with the Providence Housing Authority to ensure that former tenants have the opportunity to return to the development at project completion.
  7. Q: Throughout the public process, 34 project-based Section 8 vouchers were referenced. Have these been committed?
    A: There is no commitment of project-based subsidy at this time. It would be incumbent upon the Providence Housing Authority to agree to commit those vouchers to the development. We are hopeful that once the developer has been selected they will enter into negotiations with the Providence Housing Authority to see whether or not they are willing to put the subsidy back into the development.
  8. Q: Can you clarify your expectations for proposals for the August 30 deadline? If there is no commitment of the project-based Section 8 subsidy how will that change the financial modeling? Can you describe what you are looking for from developers?
    A: As with any application for funding, developers have to make some assumptions around what they are going to be able to achieve. If a developer is confident that they can secure a commitment of project-based vouchers or be successful in securing other rental subsidies, then the developer(s) should model it that way. We believe that adequate guidance as to what is required from a respondent has been provided in a clear and concise manner in the RFP. Project goals are set forth on page 3 of the RFP.
  9. Q: The scoring matrix includes bonus points for an affordability period beyond 30 years. Are there incremental bonus points for how far out one is willing to go?
    A: Bonus points will be awarded for any affordability terms beyond 30 years.
  10. Q: Can you provide information on carrying costs?
    A: An estimate of carrying costs since RIHousing purchased the property can be found on www.rihousing.com/BarbaraJordan2.
  11. Q: Are you aware of any environmental testing that’s been done at the property?
    A: No.
  12. Q: It appears that the financial piece that is different in this RFP from the tax credit piece is that the weighted percentage of the cost is lower than what a tax credit has been consistently for the last three or four years. It seems to be much more heavily weighted than a tax credit application. So, is it the numbers, or is it the vision, or is it the income levels?
    A: The numbers or total development cost as well as income targeting are an important component of the proposal as overall score will be a factor considered by the funding committee. Equally as important is the vision for redevelopment. We would direct respondents to the community engagement summary which outlines important redevelopment factors for community engagement participants and the project goals set forth in the RFP for guidance.
  13. Q: Is there any specific funding earmarked for this project?
    A: No.
  14. Q: Is there information on the timeline for additional funding sources?
    A: Please see www.rihousing.com/BarbaraJordan2 for a timeline on additional funding sources.
  15. Q: Does RIHousing have any bonding cap restraints?
    A: No.
  16. Q: Is the bidder required to have a performance bond in place?
    A: Bidders are not required to provide a performance bond, but the chosen developer(s) will need to have one in place.

Timelines

RIHousing Financing Timeline
Program Important Dates
Predevelopment Loan Accepted on a rolling basis
Preservation Program Accepted on a rolling basis
4% Low Income Housing Tax Credit (LIHTC)/ tax exempt financing Accepted on a rolling basis
Section 811 Accepted on a rolling basis
HOME/Housing Trust Fund (HTF) RFPs to be released on or about Oct 2019, April 2020 and Oct 2020
9% LIHTC RFPs to be released on or about Oct 2019 and Oct 2020
 

For additional information on housing resources, please contact Emily Freedman, Director, Division of Housing & Community Investment for the City of Providence at efreedman@providenceri.com, Michael Tondra, Chief of Housing and Community Development for the state of Rhode Island, at Michael.tondra@doa.ri.gov or Peter Asen, Director of Strategy & Development for the Providence Housing Authority at pasen@provhousing.org.

 

Project Timeline
Item Timeline*
Applications due September 13, 2019
RIHousing staff proposal review September – November 2019
External committee review and project presentations December 2019 and January 2020
Recommendation to RIHousing Board of Commissioners February or March 2020
 

*Please note: This schedule may change depending on the volume applications received.

 

Videos of Barbara Jordan II Properties:

21-23 Taylor St.

Poor condition
with existing brick foundation

2 Harvard St.

Poor condition
with existing brick foundation

23 Somerset St.

Poor condition
with block/concrete foundation

38-42 Somerset St.

Good condition
with block/concrete foundation

25 Portland St.

Good condition
with block/concrete foundation

Community Engagement

What is Barbara Jordan II and the Community Engagement Process?

Barbara Jordan II is a housing redevelopment project in Upper South Providence which includes 26 two- and three-story apartment buildings situated on scattered sites totaling 2.75 acres. The 26 buildings contain a total of 74 apartments, all of which are currently vacant. In 2018, the U.S. Department of Housing and Urban Development finalized a foreclosure of the Barbara Jordan II housing development and in June of that year ownership was transferred to RIHousing.

The Community Engagement Process was designed to foster a meaningful dialogue with Upper South Providence residents, anchor institutions, neighborhood organizations and other local stakeholders to create a vision for the redevelopment of the housing in Barbara Jordan II. From summer 2018 through March 2019, a community engagement process was undertaken to create a vision for the redeveloped housing at Barbara Jordan II.

What are the overall community engagement goals?

  1. Engage in a meaningful dialogue about how the redevelopment of Barbara Jordan II properties could improve the community;
  2. Develop a vision that will improve the Quality of life for future residents, as well as current residents of Upper South Providence;
  3. Prepare a Developer Request for Proposal that incorporates feedback from the Community Engagement Process; and
  4. Solicit a Developer to successfully implement the redevelopment of Barbara Jordan II.

Community Engagement Materials

Stakeholder Kick-Off Meeting July 23, 2018
Community Meeting 1 – Presentation August 27, 2018
Community Meeting 1 August 27, 2018
Steering Committee 1 September 17, 2018
Community Meeting 2 October 15, 2018
Steering Committee 2 October 16, 2018
Community Meeting 3 – Presentation January 14 & 16, 2019
Community & Youth Engagement Meeting 3 January 14 & 16, 2019
Community Report Back Meeting March 11, 2019