Travis County Facilities Corporation Request for Proposal For Real Estate Underwriting Services

Solicitation No. HATC-04-2024

Issue Date: March 29, 2024

Submission Deadline: March 29, 2024 – 5:00PM CST

Questions Deadline: March 20, 2024, at 5:00PM CST
ALL QUESTIONS MUST BE SUBMITTING IN WRITING TO:
[email protected]

Issued by:

Housing Authority of Travis County
Patrick Howard, CEO / Executive Director

Travis County Facilities Corporation (TCFC) is issuing this Request for Proposal (“RFP”) to identify and contract for Real Estate Underwriting Services (“Underwriter”) services. All qualified professional service providers (“Respondents”) wishing to apply must submit the materials listed in this RFP in order to be considered.

I. Timeline

TDFC will accept responses until 5:00 PM CST on Friday, March 22, 2024. HATC retains the right to extend the submission deadline and selection period.

If selected, Respondents will execute a professional services engagement letter or other agreement with TCFC.

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II. Communications with HATC

All questions and communications concerning the RFP must be submitted to the designated point of contact: Patrick B. Howard, CEO / Executive Director, via email at [email protected].

To protect the integrity of the RFP process, members of HATC’s and TCFC’s Board of Commissioners (“Board”) shall not have contact with potential Respondents regarding issues or questions pertaining to this RFP. This contact limitation period begins when the RFP is made available and continues through the selection process. If a potential Respondent contacts a Board Member with an issue or question pertaining to the RFP, that Board Member shall not discuss the RFP and shall forward the inquiry to the designated point of contact. HATC reserves the right to disqualify submissions from Respondents that fail to adhere to this contact limitation policy.

III. About TCFC and HATC

The Housing Authority of Travis County (HATC) is a public housing authority that undertakes housing development activities that include the issuance of obligations for real estate development and to promote affordable housing. HATC co-develops new multifamily projects through its public facility corporation, TCFC). TCFC partners with developers to own, develop, and finance the construction of multifamily and mixed-use real estate. The primary purpose of HATC is provide decent, safe, sanitary, accessible and affordable housing to the residents of Travis County. HATC was created on July 5, 1975, pursuant to the Texas Local Government Code, Chapter 392 and an activating resolution of the Travis County Commissioners Court, adopted on July 7, 1975. HATC is governed by a five (5) member Board of Commissioners appointed by the Travis County Commissioners Court, which includes officer positions Chairperson and Vice Chairperson

As a public facility corporation, TCFC needs the services of an underwriter to help it evaluate potential projects and the community benefit they deliver. TCFC is governed by Chapter 303 of the Texas Local Government Code which, pursuant to Section 303.0421(b)(6), requires TCFC to receive an underwriting report regarding each project is wishes to participate in. All applicants must be able to issue such report and make the certifications required to indicate that it is complying with such statute.

IV. Minimum Requirements

Respondents must have documented experience indicating that it is an experienced real estate underwriter capable of delivering the report required by Section 303.0421(b)(6).

V. Scope of Services

Services to be provided by Underwriter shall include but are not limited to the following (the “Services”):

1. Reviewing applications, developer supplied proformas and term sheets and providing support and guidance to TCFC staff regarding the proposed rents and expenses, market analysis, cost analysis compared to Marshall and Swift or other sources, property tax analysis for proposed workforce transactions and multifamily housing revenue bond issuances.
2. Preparation of an underwriting report satisfying the requirements of Section 303.0421(b)(6) which must include an analysis of the community benefits provided by the project as compared to the taxes given up by any tax exemption contemplated for the project.
3. Attending meetings of the TCFC Board of Directors, and the Travis County Commissioners Court on rare occasions.

Any additional services that will be provided within the scope of the fee schedule proposed in the response should also be described.

VI. Review and Selection

HATC will evaluate Respondents based upon the following:

1. Demonstrated competence, experience, knowledge, and qualifications of Respondents.
2. Reasonableness of the proposed fees for the services to be performed.
3. Ability and commitment to provide options, alternatives, and/or solutions to issues and obstacles that arise in the execution, improvement and/or modification of applicable programs and business.
4. Previous experience and performance with similar organizations.
5. Certification as a Minority- and Women-Owned Business Enterprise.
6. Texas-based respondents.
7. Respondents with staff physically present in Travis County, Texas; and
8. Other pertinent information.

Respondents or Respondent teams not located entirely in Travis County should explain how they plan to maintain the necessary familiarity with the affordable housing market and related development and policy trends in Travis County. Prior experience advising Texas housing finance corporations or Texas public facility corporations is preferred, but Respondents who have not worked with Housing Authorities or PFCs in the past should explain other relevant experience related to the development, ownership, and management of multifamily affordable housing. HATC requires that Underwriter has appropriate general liability and professional liability insurance acceptable to HATC, and to provide evidence of same.

All things being equal, preference will be given to Respondents with Minority- and Women- Owned Business Enterprise certification, Texas-based Respondents, and Respondents with staff physically present in Travis County, Texas.

HATC, at its discretion, reserves the right to (a) change or cancel this RFP; (b) conduct interviews with Respondents or ask for modification or clarification of a Respondent’s submission in order to properly evaluate a response; (c) determine whether a response fails to meet the requirements of this RFP in some material aspect; (d) obtain references regarding any Respondent’s past performance from any source; (e) negotiate with some, all, or none of the Respondents with respect to any term or terms of the responses or contracts; and (f) execute a professional services engagement letter or other agreement with a successful Respondent. HATC reserves the right to negotiate all elements that comprise the Respondent’s submission to ensure that the best possible consideration is afforded to all concerned. Focused responses that specifically address Respondents’ ability to provide the Services described above are strongly preferred. Generic responses that do not specifically respond to this RFP will be disregarded.

Neither issuance of this RFP nor evaluation of any responses obligates HATC to award a contract from this RFP.

Scoring Criteria

HATC staff and Board Members will review all responses based upon the below scoring criteria and will make a recommendation to HATC for approval:

1. Subject matter expertise.
2. Expertise, experience, and location of personnel on Respondent’s team.
3. Reasonableness of fees.
4. Experience working with similar organizations; and
5. Historically Underutilized Business, Minority-Owned Business, or Woman-Owned Business participation or female/minority representation on Respondent’s team.

VII. Additional Information

This RFP does not commit HATC to award a contract to any Respondent or to pay any costs incurred by a Respondent to prepare or submit a response or otherwise participate in this RFP process.

Conflict of Interest

Although the Respondent will be an independent contractor for HATC and not an employee of HATC, to avoid all possibility of conflicts of interest, all Respondents must certify that none of the owners, officers, partners, members, or shareholders of the company and none of their families are related within the third degree of consanguinity or the second degree of affinity to any HATC employee or any Board Member. Respondents must also certify that they are not prohibited from representing an instrumentality of Travis County under Chapter 303 of Texas Local Government Code, the Travis County Code, or applicable law.

In the event a Respondent, any family member of a member of the Respondent’s team, or any owner, officer, partner, member, or shareholder of a Respondent is a Travis County employee, County officer (as that term is defined by the Travis County Code) or elected official serving a local government body in Travis County, Texas, the Respondent must disclose such relationship in its response.

Release of Submissions and Proprietary Information

If a Respondent submits proprietary information that should not be publicly disclosed, the proprietary information must be clearly identified on each page at the time of submission. HATC will, to the extent allowed by law, endeavor to protect such information from disclosure. If a Respondent fails to identify proprietary information, all information in the submission will be deemed non-proprietary and will be made available upon request pursuant to the Texas Public Information Act, Government Code Chapter 552 after the review process has been completed. The final decision as to what information must be disclosed lies with the Texas Attorney General. Failure to identify proprietary information will result in all unmarked sections being deemed non-proprietary and available upon public request.

Respondents may not mark an entire response as confidential. Should a response be submitted in this manner, HATC reserves the right to hold no portion of the response as confidential, unless such a portion is determined as exempt from public access by law.

Indemnification

All Respondents must agree to indemnify, defend and hold harmless HATC, its officers, agents and employees from any and all claims and losses accruing or resulting from the Respondent’s performing professional services for HATC.

Federal, State and Local Requirements

Approved Respondents are responsible for compliance with all laws governing entities doing business in Texas, including both federal and state unemployment insurance coverage and standard workers compensation insurance coverage. Respondents must comply with all federal and state tax laws and withholding requirements. HATC will not be liable to a Respondent or its employees for any unemployment or workers' compensation coverage or federal and state tax withholding requirements. Respondents shall indemnify HATC and pay to HATC any costs, penalties or loss whatsoever occasioned by Respondent's omission or breach of this section.

Minor Deficiencies

HATC reserves the right to waive minor deficiencies and informalities if, in the judgment of HATC, its best interest will be served.

VIII. Submission Directions

Respondents must include the following items:

1. General Firm Information
   a. Provide a brief description of your firm, including but not limited to the following:
   - Name, telephone number, and email address of a representative of the firm authorized to discuss your proposal.
   - Address of the firm’s main office
   - Number of employees of the firm; and
   - Names, locations and resumes of the primary staff who will provide Services to HATC (see above), including relevant experience of such staff.
2. Experience
   a. Describe your firm and its abilities and experience related to the Services; and
   b. Identify any prior work for a Texas housing finance corporation or Texas public facility corporation.
3. References
   a. Provide at least three client references. Include name, address, telephone number, and email address. HATC reserves the right to contact and interview references.
4. Fees
   a. Provide a schedule of fees based on transaction type for providing the Services; and
   b. Provide the hourly rate, if applicable, for each staff person you propose to perform the Services. Hourly rates must be valid through calendar year 2023.
5. Conflict of Interest
   a. Identify any conflict of interest that may arise as a result of business activities or ventures by your firm and associates of your firm or employees; and
   b. Describe how your firm will handle actual and or potential conflicts of interest.
6. Include any other information that will be helpful to HATC in making its decision.

Respondents must submit proposals in this manner:

1. Responses must be submitted electronically via email.
2. All responses must be signed and dated.
3. Proposals that do not comply with these instructions may be rejected. HATC may also reject a proposal that does not include all requested information.
4. Submission of a response represents Respondent’s representation to HATC that the response complies with the requirements of this RFP.

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Sign and submitted attached RFP.