Request for Proposals for Affordable Housing Rental Development Gap Funding

SOLICITATION NO. HATC-03-2024

Issuance Date: Friday, March 11, 2024

Submission Deadline: Ongoing

ALL QUESTIONS MUST BE SUBMITTED WRITING TO:
[email protected]

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A. Introduction

Travis County Facilities Corporation (TCFC) is a public facility corporation created by the Housing Authority of Travis County, Texas. TCFC has created a fund to support housing at the 30% area median income level (AMI). TCFC is seeking proposals from non-profit and for-profit developers that need gap funding for their multi-family residential new construction, multi-family preservation/ rehabilitation, multi- family transitional housing, or permanent supportive housing project benefitting families at the 30% AMI level. TCFC believes the most efficient way of providing housing at the 30% AMI level is to do it in conjunction with low-income housing tax credits, but all projects which serve this income range will be reviewed. The proposed project should serve households at 60% of the area median income (AMI) with priority to serve at least 10% of the units for households at 30% of the AMI. The funds will be used to assist in filling the gaps in such projects. Priority will be given to projects where TCFC is also providing a property tax exemption through an equitable title structure with an affiliate of TCFC serving as the general partner of a tax credit partnership. It is anticipated that the funds will be loaned to the development entity on a subordinate basis. At the time of submittal, the organization should have secured site control and have conditionally secured all non-federal funding.

TCFC reserves the right to not award any funds to any specific project for any reason and to determine the amount, type and size of its participation in any project.

B. Agency Background

Created in 1975 by Resolution of the Travis County, Texas Commissioner’s Court and governed under the guise of Chapter 392 of the Texas Local Government Code, the Housing Authority of Travis County (HATC) provides safe, decent, and sanitary housing for low-income families in Travis County.

At the Housing Authority of Travis County (HATC), the primary goal is to provide safe, decent, and affordable housing for low-income families in our community. The organization achieves this by administering a range of programs and services designed to support families in their pursuit of stable housing and self-sufficiency.

One of the organization’s key initiatives is the management and maintenance of HUD Project-Based Rental Assistance (PBRA) units, as well as affordable family and senior developments (non-PBRA) - Carson Creek Homes and Manor Town Apartments, respectively. These units offer eligible families access to quality housing options that are within their financial means, thereby promoting stability and well-being. In addition to working closely with property owners and landlords, the organization ensures that each housing unit meets strict quality standards, providing residents with a comfortable and secure living environment.

Another critical aspect of HATC’s mission is the issuance of Housing Choice Vouchers. This program offers qualifying families the flexibility to choose rental units in the private market while receiving financial assistance from HATC. By collaborating with property owners and addressing potential barriers to housing access, HATC help facilitate a smooth transition for voucher holders into their new homes.

Beyond simply providing housing options, HATC is committed to empowering our clients through various supportive services. The organization works in partnership with other community organizations to offer job training, educational programs, and access to essential resources. By fostering self-sufficiency among HATC residents, the organization contributes to building stronger communities and enhancing the overall quality of life for those it serves.

Currently, HATC currently provides services to its clients through:

• Affordable Housing - HATC maintains multiple affordable housing developments throughout Travis County. Specifically, this includes 5 separate developments with 154 total units (including 33 senior units and 20 additional senior units under construction.)
• Rental Assistance – HATC administers nearly 700 federally funded Housing Choice Vouchers (HCV) providing rental assistance to low-income individuals and families, in addition to special vouchers and program assistance for disabled and homeless individuals.
• Supportive Services - The HATC Foundation 501(c)3 has outsourced service provision to BiGAustin in order to provide HATC residents and program participants. BiGAustin is an Austin, Texas-based nonprofit organization which has served the Austin area community since 1992 with a mission to assist primarily low- to moderate-income individuals achieve success through entrepreneurship, training and education, and more. Services provided by BiGAustin to the HATC Foundation include but are not limited to financial literacy, digital literacy, career development, youth and senior programming, health screening and education, and scholarship programs.

More background regarding the HATC may be found at www.hatctx.com

Multifamily Residential Development Partnerships

Travis County Facilities Corporation (TCFC) was formed, in accordance with the Public Facility Corporation Act, Chapter 303, Texas Local Government Code on January 10, 2001, to assist the Housing Authority of Travis County "in financing, refinancing, or otherwise assisting in the acquisition, construction, rehabilitation, renovation, repair, equipping, furnishing, and placement in service of public facilities on behalf of the Authority. TCFC partners with mission-focused development entities to specifically expand affordable housing options for current and future Travis County residents.

C. RFP Submittal Requirements

a. Applicant Information

i. Proposed organizational chart and formation documents of Applicant and its members or partners with ownership percentages included, as well as a disclosure of any direct or indirect relationship or interest between the parties.

ii. Description of any comparable projects completed in the prior 5 years, including addresses. Please include total number of units, unit mix, affordability mix, total development cost, and development partners such as public facility corporations, housing finance corporations, housing authorities, etc.

iii. Description of any projects currently underway or completed in the prior 3 years in the State of Texas, including addresses.

iv. List of staff, consultants, attorneys, architects, contractors, and other advisors to be involved in the project, contact information for each, and a description of each person or entity’s qualifications and relevant experience.

v. Description of any actual or potential conflicts of interest with TCFC and Travis County officials or employees.

vi. List of any loan defaults, bankruptcies, or pending litigation involving any managing members of the ownership entity.

b. Project Information

i. Executive summary of the proposed development or acquisition, including total project cost, project schedule and phasing, unit and affordability mix, design concepts and amenities, resident services, zoning requirements and changes proposed, and plans for any required relocation.

ii. Detail the number of affordable units, unit types, level(s) of affordability, and include a rent schedule.

iii. Describe any tenant amenities, common area amenities, and resident services to be provided.

iv. Provide the proximity to and a description of community amenities such as schools, parks, libraries, grocery stores, transportation, healthcare, and employment centers.

v. Conceptual schematic drawings (including floorplans, elevations, and site plans).

vi. Copies of market feasibility studies or other third-party market studies. Proposed acquisition and/or development timeline.

vii. Information about community engagement completed or planned. What action has been taken to create community support for this project? Describe what actions have been taken to communicate the project characteristics and progress with immediate neighbors. If no action has been taken, provide details on the community engagement strategy including an outreach timeline, primary point of contact, and communication pathway.

c. Property Information

i. Site address and appraisal district account numbers.

ii. Description of current property ownership. If property is owned by someone other than Applicant, include a description of the Applicant’s plan to acquire site control as well as copies of any lease, option, or purchase agreements.

iii. Copies of any available engineering, environmental, or other property studies, describe any plans for remediation or other environmental cleanup.

d. Financial Information

i. Most recent two years of audited financial statements of Applicant or anyone having 20% or more ownership interest. If Applicant is a special purpose or single-asset entity, also submit the most recent two years of audited financial statements for the controlling entity of Applicant. Applicants that do not have audited financial statements shall submit sufficient financial documentation to verify capacity to complete the development. These items can be submitted separately to the DPFC Financial Advisor upon request.

ii. Sources of project funding and copies of all supporting information

iii. Development budget. Must be broken out with sufficient detail that TCFC can determine cost reasonableness.

iv. Operating proforma with a minimum 15-year term in unlocked Excel.

v. Description of other incentives sought and methodology by which incentive amount was determined.

D. Submittal Deadline / Procurement Schedule

Due Date & Time: This is an evergreen solicitation and applications can be submitted at any time.

• Pre-Submittal Conference: Pre-Submittal Conference will be schedules as needed. Attendance at the Pre-Submittal Conference is optional, but highly encouraged.
• Respondents may contact Patrick Howard, CEO / Executive Director at (512) 854-1885 or [email protected]. to participate. Respondents may submit written questions concerning this RFP to the Staff Contact Person listed above. All questions shall be sent by e-mail. Questions submitted and TCFC’s responses will be posted with this solicitation.

To make an application please submit all information and attachments described below. If any information is not applicable or available at the time of application, please provide a statement for its omission from the application.

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