Portland Housing Bureau's 2021 Metro Bond Opportunity Solicitation - April 30, 2021
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Overview In November 2018, voters in Washington, Clackamas and Multnomah Counties approved Measure 26-199, the Metro Affordable Housing Bond (“Metro Bond”), the first ever regional bond for affordable housing. The measure authorizes Metro to issue up to $652,800,000 in general obligation bonds for the development or acquisition of affordable housing. Within the city limits of Portland, $211,056,579 in Metro Bond funds have been made available to create 1,475 units of affordable housing. Of this total, the City will create at least 737 family-sized units (two or more bedrooms) to respond to the housing need among Portland families. A priority of Metro Bond funds is to make the deeply affordable 30% AMI units available for the most vulnerable, lowest income residents in our community. The City will create 605 deeply affordable units for households with incomes at or below 30% AMI, to serve people who earn low wages, live on fixed incomes, have experienced homelessness and/or have other special needs. The City will also create 300 Supportive Housing units to meet this priority. The City has already made substantial progress on its Metro Bond goals, and this solicitation seeks proposals to help further its progress. The Metro Bond Opportunity Solicitation (M-BOS) invites proposals from private and non-profit development partners to help meet and exceed the affordable housing goals established under the City’s Local Implementation Strategy. In addition to Metro Regional Housing Bond funds, the M-BOS offers additional sources of capital funds from the Portland Housing Bureau, two development sites, incentives from Metro, rent support from Home Forward, and services from the City/County Joint Office of Homeless Services (JOHS). Capital Funding Maximum of $80,500,000 • Up to $75,000,000 in Metro Housing Bond funds for capital expenses for new construction, acquisition and/or rehabilitation of existing buildings • Up to $5,500,000 in Central Eastside Tax Increment Financing for capital expenses for new construction, acquisition and/or rehabilitation of existing buildings located in the Central Eastside Urban Renewal Area • A Portland Housing Bureau and a Metro Owned Site: • North Interstate property, located at 5020 N Interstate Avenue, for development and new construction • NE Glisan property, located at 432 NE 74th Avenue, for development and new construction Rent Support and Service Funding • Between 210 and 250 Project Based Section 8 payment (PBS8) vouchers from Home Forward 2 Metro Bond Opportunity Solicitation, Spring 2021
• Up to $10,000 per unit per year from the JOHS, directly or through partnerships with Multnomah County departments, to fund support services for projects with Supportive Housing (SH) units designed to serve people with serious disabling conditions, extremely low-incomes, and who have experienced long-term homelessness, with a priority for Black, Indigenous, and People of Color (BIPOC), Older Adult and/or LGBTQ+ households. PRE-SUBMISSION FORM: Development teams planning to submit a proposal through this M-BOS will be asked to complete an online Pre-Submission Form by June 14, 2021 via this survey link. MANDATORY DEVELOPER INFORMATION SESSION: An information session for this solicitation will be held on Wednesday, May 12, 2021 online via a Zoom Meeting Link, from 3:00PM to 5:00PM. All developers/sponsors wishing to be considered through this M-BOS must have at least one team member attend. SOLICITATION COORDINATOR: Tanya Wolfersperger, Housing Program Coordinator Portland Housing Bureau 421 SW 6th Avenue, Suite 500, Portland, OR 97204 (503) 823-3251 || tanya.wolfersperger@portlandoregon.gov SOLICITATION LOCATION: www.portland.gov/phb/MBOS2021 3 Metro Bond Opportunity Solicitation, Spring 2021
GENERAL INFORMATION Solicitation Title: Metro Bond Opportunity Solicitation, Spring 2021 Solicitation Coordinator: Tanya Wolfersperger, Housing Program Coordinator (503) 823-3251 tanya.wolfersperger@portlandoregon.gov Proposal Delivery Location: Via electronic submission to: M-BOS Applications M-BOS Webpage: www.portland.gov/phb/MBOS2021 Direct all questions regarding this M-BOS to Tanya Wolfersperger. SCHEDULE M-BOS Issued Friday, April 30, 2021 Mandatory Developer Wednesday, May 12, 2021 Information Session from 3:00 pm to 5:00 pm (PDT) Pre-Proposal Submission: Monday, June 14, 2021 Friday, July 2, 2021 Proposals Due: at 3:00 pm (PDT) Anticipated Dates for Evaluation Committee July-August, 2021 meetings and proposer interviews: Anticipated Notice of Awards: October 2021 All proposals must be received by the date and time proposals are due to be considered. PHB reserves the right to change any dates to serve the goals of the M-BOS. 4 Metro Bond Opportunity Solicitation, Spring 2021
TABLE OF CONTENTS Page Number General Information 4 I. Available Resources 6 II. Introduction to Portland’s Local Implementation Strategy for the Metro 7 Regional Housing Bond III. Investment Requirements 9 IV. Preferences 11 V. Supportive Housing Considerations and Requirements 12 VI. Additional Considerations 16 VII. PHB and Metro-Owned Sites: Additional Requirements and Preferences 20 VIII. Application and Submittal Requirements 24 IX. Selection Process and Evaluation Criteria 26 X. General Conditions 29 XI. List of Forms and Appendices 32 5 Metro Bond Opportunity Solicitation, Spring 2021
I. Available Resources Project and Funding Source Purpose Resources Up to $75,000,000 for all projects PHB: Metro Housing Bond Capital Costs awarded through this M-BOS Up to $5,500,000 for projects located in PHB: Central Eastside Urban the Central Eastside URA. May be used in Renewal Area (CEURA) Tax Capital Costs conjunction with Metro Housing Bond Increment Financing (TIF) resources above. Up to $10,000 per Supportive Housing Joint Office for Homeless Services Support Services (SH)* unit, for a minimum of 120 (JOHS) households** 210-250 vouchers, including minimum 120 available for SH-Dedicated projects. Home Forward: Project Based Vouchers also available for up to 18% Operating Support Section 8 Vouchers (PBS8) family-size units within a project, income restricted at 0-30% of area median income (AMI)*** PHB and Metro Owned Sites See Section VII for information on 5020 N. Interstate Avenue Land funding See Section VII for information on 432 NE 74th Avenue Land funding * As outlined in Appendix F, PSH Services: Guidelines, Delivery Structures and Eligible Activities ** If awarded projects propose service funding at less than the allowable maximum, JOHS is willing to negotiate potential funding to support additional SH units. ***Projects must have a minimum of 9 vouchers to qualify for use of PBS8 vouchers. Rents for PBS8 vouchers are set at 60% AMI levels. See Section III for additional information. 6 Metro Bond Opportunity Solicitation, Spring 2021
II. Introduction to Portland’s Local Implementation Strategy for the Metro Regional Housing Bond In November 2018, Metro area voters in Washington, Clackamas and Multnomah Counties approved Measure 26-199, the first ever regional bond for affordable housing. The Measure authorized Metro to issue up to $652,800,000 in general obligation bonds for the development or acquisition of affordable housing. Leading up to the vote, Metro conducted a series of public engagement activities. From those emerged the regional investment strategy for the Metro Housing Bond (“Metro Bond”). The Metro Bond’s goal is to create at least 3,900 new affordable homes across the region, of which: • At least 1,600 will be affordable to households making 30% of area median income (AMI) or below; • At least 1,950 will be sized for families, with 2 or more bedrooms; and • No more than 10 percent will be provided for households making 61-80% of area median income. The Portland Housing Bureau (PHB) is the lead bureau for the City of Portland (City) responsible for Metro Bond implementation. PHB’s work will be guided by the four principles from Metro’s strategy prioritized in conversations with key stakeholders who participated in a six-month public process prior to the referral of the Measure: 1. Lead with racial equity. Ensure that racial equity considerations guide and are integrated throughout all aspects of program implementation. 2. Create opportunity for those in need. Create housing for Communities of Color, families, people living with disabilities, seniors, Veterans, and households experiencing or at risk of homelessness. 3. Create opportunity throughout the region. Ensure investments are distributed across the region. 4. Ensure long-term benefits and good use of public dollars. Provide for community oversight to ensure transparency and accountability in program activities and outcomes. Using a formula based on assessed (real property) value, the City’s share of the Metro Bond is approximately 38 percent, or $211 million, to create a least 1,475 units of affordable housing within the City. Of this total, 605 units will be for households with incomes at 30% AMI, 737 will be family-sized units, and 300 units will be for supportive housing. Portland’s Local Implementation Strategy (LIS) for the Metro Bond outlines a commitment to furthering our community goals of preventing displacement, advancing racial equity and making a tangible impact on ending homelessness. Building on PHB’s prior experience with Portland’s Housing Bond, a $258.4 million general obligation bond passed by Portland voters in 2016, the focus of Portland’s Metro Bond deployment is to create housing access and opportunity for individuals and organizations from and/or representing communities in need identified by Metro, as listed below. • Priority Communities: o Black, Indigenous, and Communities of Color o Families with children and multiple generations o People with disabilities o Seniors o Veterans 7 Metro Bond Opportunity Solicitation, Spring 2021
o Households experiencing homelessness and/or facing imminent displacement • Location Priorities: o For building acquisitions, seek areas at high risk for gentrification. o For new construction projects, preference is for High Opportunity Areas. o Balance investments throughout the city. o Assess acquisitions with racial equity lens. o Invest in areas with limited affordable housing resources. o Consider school catchment areas, and planned transit and infrastructure projects. The 2021 Metro Bond Opportunity Solicitation (M-BOS) is part of the third phase of Portland’s local strategy for the Metro Bond. Previous implementation phases are currently underway, including Metro’s pre-approved Phase 1 project, approval of up to four Phase 2 projects currently in PHB’s pipeline, and contingent awards for up to four Supportive Housing projects serving BIPOC communities. The 2021 M-BOS aims to achieve several goals, including: o Leverage federal and state resources; o Advance County/City goal of 2,000 Supportive Housing units; o Continue progress on both Supportive Housing and 30% AMI unit goals; and o Advance progress on family-size unit goals. Proposers should demonstrate their support of this commitment in as many aspects of a project proposal as possible, including the targeted population served, location, the development team, project contractors and vendors, resident and supportive services, marketing, leasing, and operational components. Every project receiving Metro Bond funds is required to meet a portion of the LIS’s production goals, which PHB believes are achievable if met incrementally through close coordination with partners. PHB anticipates that successful proposers will utilize a combination of capital funding sources, including but not limited to proposer’s equity, bond funds, Section 42 Low Income Housing Tax Credit (LIHTC) equity, third- party grant funding and conventional construction and permanent financing sources. If projects are using LIHTCs, projects seeking a PHB funding award should assume 4% LIHTC in its pro forma. PHB will award Metro Bond funds to selected projects by providing a cash flow dependent loan, payable to the City. An awarded project may be eligible for a “pre-development loan” at PHB’s discretion subject to PHB’s terms and conditions from non-bond sources. Proposers may submit individually or as a team. All proposals will be evaluated against the Investment Requirements and Preference Criteria established for each opportunity presented below. 8 Metro Bond Opportunity Solicitation, Spring 2021
III. Investment Requirements Unless otherwise noted in Section VII. PHB or Metro-Owned Sites: Additional Requirements and Preferences, the following Investment Requirements apply to all M-BOS projects: Requirement First Priority: Second Priority: Third Priority: Dedicated Supportive Housing Family Focused Housing Integrated Supportive Housing (75-100% SH in project) (10-25% SH in project) Municipality Incorporated City of Portland Incorporated City of Portland Incorporated City of Portland Maximum • $143,000 for New • $143,000 for New • $143,000 for New subsidy/unit of Construction Projects Construction Projects Construction Projects Metro Bonds • $110,000 for • $110,000 for • $110,000 for Acquisition/Rehabilitation Acquisition/Rehabilitation Acquisition/Rehabilitation Projects Projects Projects Minimum 40 units that may be scattered 50 units 50 units units/project sites but financed together Supportive Minimum 40 SH units or 75% of No SH requirement Minimum of 10% and up to25% Housing total units, whichever is greater of total units (see Section V. for Exception: 432 NE 74th Avenue – details) Focused on serving adult single or see requirements in Section VII. Focused on serving adult single couples in BIPOC, Older Adults, or couples in BIPOC, Older and/or LGBTQ+ households. Adults, and/or LGBTQ+ households. 30% AMI units All SH units for households Minimum 33% of total units for Minimum 33% of total units for earning 30% AMI or below are households earning 30% AMI or households earning 30% AMI or supported by PBS8 vouchers. below, including a minimum 15% below, including a minimum 15% of total units unsubsidized and of total units unsubsidized and without PBS8 vouchers. without PBS8 vouchers. Up to 18% of units for households SH units for households earning earning 30% AMI or below are 30% AMI or below are supported supported by PBS8 vouchers by PBS8 vouchers (minimum 9 (minimum 9 per project). vouchers per project). 30% AMI units to be distributed across all unit sizes. Average bedroom 1.0 or below 1.75 1.0 or below count 9 Metro Bond Opportunity Solicitation, Spring 2021
Requirement All Projects Project Narrative & All proposals must have a Project Overview Narrative addressing specific aspects of the project Equity Plan with a focus on leading with equity per Form C. All proposals must have an Equity Plan addressing specific components per Form D. Programming All units supported by PHB funding must be regulated at or below 60% AMI. Existing buildings/ Appropriate for serving Priority Populations outlined in Portland’s LIS (See Appendix A). projects May not have in effect any type of governmental legal/regulatory agreement on rents or tenants’ incomes. Metro Bond funds cannot be used on units with an existing regulatory agreement. Exception: Units supported by Central Eastside URA TIF funds only. Screening Units must be made available to households with adverse credit, rental, and legal histories and very low income. See Appendix J for Sample Screening Criteria. PHB may review and request revisions to screening criteria and lease up process. See Form F for Affirmative Fair Housing Marketing Plan. Resident Services Plan Required and relevant to the targeted population. See Section VIII. Submittal Requirements for additional information. Supportive Services Partnership with JOHS-qualified vendor of supportive housing services for all SH units. Plan See Appendix H for list of qualified services providers. Service providers that are not currently qualified vendors with JOHS are also welcome and must successfully complete a JOHS Request for Programmatic Qualifications (RFPQ) prior to being eligible to contract with JOHS for support services funding. JOHS will facilitate an RFPQ process for supportive housing services within the next fiscal year. Equity in Contracting • Construction contracting: 30% Disadvantaged, Minority, Women Owned, Emerging and Workforce Small and Service-Disabled Veteran Business (DMWESB-SDV) construction hard cost. Training • Professional services: PHB goal of 20% DMWESB-SDV professional services contracts. • Apprentice and Workforce Diversity goals, as specified in Appendix D. Sustainability Compliance with PHB’s Green Building Policy. See Appendix E Leverage of M-BOS Maximization of all non-Bond sources of funding including use of Low-Income Housing Tax Credit capital resources equity and conventional debt to the greatest extent feasible. Site Control Demonstrated through fee simple ownership, executed long-term land lease, letter of intent, purchase option, purchase and sale agreement or similar with closing date on the site no later than December 31, 2021. Exception: Does not apply to 5020 N. Interstate Avenue or 432 NE 74th Avenue sites. Inclusionary Housing All program requirements under the Inclusionary Housing program. Preference Policy Use of N/NE Preference Policy for unit marketing and lease-up of project, including for 5020 N. Interstate site, if located within the Policy’s service boundaries, the Interstate Corridor URA. 10 Metro Bond Opportunity Solicitation, Spring 2021
IV. Preferences Unless otherwise noted in Sections V and/or VII, the following Preferences will be applied to all M-BOS projects: Targeted Population and Programming Programming that demonstrates positive outcomes for residents within the priority populations identified in Measure 26-199, the Metro Housing Bond Framework and Portland’s LIS or programming that demonstrates genuine partnership with a history of positive outcomes for residents in the priority populations. These goals are in priority order below: • First Priority: Minimum of 120 units of SH in 2-3 SH-focused projects, including at least one Enhanced SH project and one Recovery-Oriented SH project, as described under Eligible Populations in Section V. • Second Priority: Family focused projects with an average bedroom size of 1.75. • Third Priority: Integrated SH projects – 10-25% of units are set-aside for SH. • All Projects: Those that address historic and present racism and lack of housing access and opportunity experienced by BIPOC communities. • All Projects: More than the minimum required units. • All Projects: More than 15% of total units are for 0-30% AMI households without PBS8 vouchers. Location • Projects located in proximity to culturally specific and responsive services and resources for the intended population of the project. • Projects located near high-frequency public transit, natural areas and other economic, educational, health and service resources. • New construction projects located in High Opportunity Areas defined as a score of 3 or higher on the Opportunity Area Map. • Acquisition/Rehab projects located in areas at high risk of gentrification and displacement. Leverage/Other • Projects demonstrating a fully funded project using 4% LIHTC, conventional debt and proposed PHB funding award, requiring no additional, competitive sources of funding so the project can be executed expeditiously. • Significant leveraging of resources not offered in this M-BOS to support capital development and ongoing services and operations, when aligned with project goals. • Projects that will provide long-term positive cash flow and/or repayment of city-held debt as demonstrated by the development budget(s) and operating pro forma. • Projects with a lower maximum subsidy/unit than established in the Investment Requirements. 11 Metro Bond Opportunity Solicitation, Spring 2021
V. Supportive Housing (SH) Requirements and Considerations In addition to making progress toward Bond goals, the City of Portland and Multnomah County have committed to increase Supportive Housing capacity, driven by our local priorities and strategies, including: the City’s October 2017 Supportive Housing Resolution (see e.g. Resolution #37323) to create 2,000 new units in Portland/Multnomah County by 2028; A Home for Everyone Chronic Homelessness Plan; Portland’s Housing Bond Policy Framework; and the Tri-County Equitable Housing Strategy to Expand Supportive Housing for People Experiencing Chronic Homelessness; and most recently with the passage of Metro Ballot Measure 26- 210, Multnomah County’s Metro Supportive Housing Services (SHS) Local Implementation Plan, which increases their goal to create 2,235 new Supportive Housing units. Our community has made progress in opening and planning for 1,265 new Supportive Housing units since October 2017. Portland has set a target to create 300 Supportive Housing units as part of the Metro Bond effort. Description Supportive Housing (SH) is an effective housing solution for people who have complex needs and have experienced long periods of homelessness. SH provides residents with deeply affordable housing and ongoing supportive services designed to address a range of needs, including primary and behavioral health care. Services must be offered voluntarily for the duration of tenancy. More details on SH are found in this section and Appendix F and Appendix G. Health System Partnership for SH-Focused Projects The City of Portland and the Joint Office of Homeless Services (JOHS) are collaborating with Health Share of Oregon and CareOregon to support the development of at least two Supportive Housing focused projects, a minimum of one of each project type, intentionally integrated with health-system services (see table below). These projects will specifically serve people experiencing homelessness who have complex health challenges including serious mental health and substance use disorders. The goal of these projects is to help address critical health services gaps in current SH models and improve collaboration across health and housing systems. This partnership builds on existing collaborations between the housing and health systems, including the Regional Supportive Housing Impact Fund (RSHIF). Health Share is the state’s largest Medicaid Coordinated Care Organization (CCO), serving over 380,000 Oregon Health Plan (OHP) members in Clackamas, Multnomah, and Washington Counties, with integrated physical, behavioral, and dental health care, as well as a range of health related services, including support to find and maintain housing. CareOregon is a nonprofit health plan that partners in Multnomah, Clackamas and Washington Counties with Health Share to serve OHP and Medicare Advantage members. CareOregon is the administrator of the behavioral health benefit for all Health Share members in the tri-county region. Selected SH-focused projects will work closely with CareOregon and Multnomah County to align the SH Services Plan with on-site and community-based Medicaid-funded services. Medicaid-funded services could include, but are not necessarily limited to, care coordination services through Regional Care Teams, Assertive Community Treatment (ACT) and Intensive Case Management (ICM) services, mental health and substance use treatment, and home-based primary care services. Most households will be eligible for Medicaid, though this is not a strict eligibility criterion for the project(s). CareOregon services will only be available to households connected 12 Metro Bond Opportunity Solicitation, Spring 2021
to Medicaid, and all households will have access to JOHS-funded SH Services. See Appendix I for more information about some of the services that CareOregon can provide. JOHS will fund up to $10,000/unit in support services that are complimentary to the Medicaid-funded services provided through CareOregon. This could include, but is not limited to, 24/7 desk coverage and crisis support; serving as a direct liaison to health system services; housing retention and tenancy supports that supplement the Medicaid-funded supports in place for tenants; eviction prevention; and the full range of SH services for people who are ineligible for or not currently connected to Medicaid-funded services. If there are costs beyond $10,000/unit that the project identifies needing to cover to serve the designated population, JOHS will work with the project and CareOregon to identity how to cover those gaps through additional JOHS funding and/or Medicaid-funded services. Eligible Populations A Home for Everyone, our community-wide ending homelessness initiative, prioritizes SH for people with disabilities and long experiences of homelessness that are severe enough to require long-term housing support. Recognizing the unmet need among several vulnerable communities for SH, and their overrepresentation within the population of people impacted by homelessness, this M-BOS prioritizes SH for BIPOC, Older Adult (individuals age 55 and older) and/or LGBTQ+ households. SH is an effective approach for providing housing support for a range of populations, such as: • Individuals and families experiencing chronic homelessness; and • Persons with disabilities, including physical and behavioral health, that are severe enough to require long-term housing support; and • People with demonstrated vulnerability factors (e.g. exposure to violence, age, criminal justice involvement, historic or generational trauma, survivors of domestic violence or sexual assault). The eligibility guidelines in the table below align with priority communities to be served in the Metro SHS program. While eligible populations will often align with those meeting the U.S. Department of Housing and Urban Development’s (HUD) definition of chronic homelessness, the Metro SHS program defines eligibility more flexibly. Eligible SH populations under this solicitation are as follows: Property Type Eligible SH Population Enhanced SH • Adult Homeless Households (see Appendix G); AND • 40+ SH units (75-100% of • Earning between 0-30% AMI; AND total project units) • Demonstrates need for tightly linked supportive • Dedicated SH project services to retain stable housing; AND • Number of units not limited • Experiencing or at imminent risk of experiencing long- to single site, may include term, literal homelessness (see Appendix G for scattered sites definitions of these terms); AND 13 Metro Bond Opportunity Solicitation, Spring 2021
• With complex physical and/or behavioral health challenges. This will often include people with co- occurring medical complexity and serious mental health and/or substance use disorders. It will also include households who are eligible for ACT or ICM services (see Appendix I). Recovery-Oriented SH • Adult Homeless Households (see Appendix G); AND • 40+ SH units (75-100% of • Earning between 0-30% AMI; AND total project units) • Demonstrates need for tightly linked supportive • Dedicated SH project services to retain stable housing; AND • Number of units not limited • Experiencing or at imminent risk of experiencing long- to single site, may include term, literal homelessness; AND multiple scattered sites • In treatment for or recovery from a substance use disorder. This will often include people with co- occurring substance use, mental health and/or physical health issues. Integrated SH Units • Adult Homeless Households (see Appendix G); AND • Minimum 50 units per • Earning between 0-30% AMI; AND project • Demonstrates need for tightly linked supportive • SH units = 10-25% of services to retain stable housing; AND total project units • Experiencing or at imminent risk of experiencing long- term, literal homelessness; AND • With a disabling condition. This can include a physical, psychological or cognitive disability, a chronic illness, or substance use disorder. Investment Requirements for SH Focused Projects • Adherence to the SH Service Guidelines and provision of Baseline Services and other eligible activities detailed in Appendix F. • Service provider(s) will be a JOHS qualified vendor of supportive housing services (Appendix H). Service providers that are not currently qualified vendors with JOHS are also welcome and must successfully complete a JOHS Request for Programmatic Qualifications (RFPQ) and be selected as a qualified vendor through the RFPQ, prior to being eligible to contract with JOHS for support services funding. JOHS will facilitate an RFPQ process for supportive housing services within the next fiscal year. • The designated SH Service Provider(s) does not need to have an existing partnership with CareOregon or be set up to bill Medicaid. A goal of these projects is to develop new partnerships across the homeless/housing system and the health system. • Referrals will come from Multnomah County’s Behavioral Health Division and Coordinated Access system, in partnership with the health system, and will focus on referring households who will most benefit from SH that is intentionally integrated with health-system services. 14 Metro Bond Opportunity Solicitation, Spring 2021
• The application narrative must include a SH Services Plan (Form E) that demonstrates effectiveness to serve the priority population(s), including a plan to offer culturally responsive and/or culturally specific services and implement low barrier screening criteria. • Application must include a commitment to working with CareOregon and Multnomah County to align the SH Services Plan with on-site and community-based Medicaid-funded services. This will include working to ensure that services are well integrated and complimentary, and to avoid duplication of services. • Projects should reflect the principles of trauma-informed design and include spaces that support community building and both group and one-on-one retention, health and behavioral health services. • Recovery-oriented SH: there are well-established models and best practices for recovery housing: see HUD’s Recovery Housing Policy Brief, the Substance Abuse and Mental Health Services Administration’s Recovery Housing Best Practices and Suggested Guidelines, and the National Alliance for Recovery Residences’ national standards for recovery residences. The application narrative must include a SH Services Plan that demonstrates effectiveness at serving adults in recovery, including how the project supports tenants through relapse. • Recovery-oriented SH: projects need to be available to tenants who are engaged in Medication- Assisted Treatment. This cannot be a cause for denial or eviction from the program. Investment Requirements for Integrated SH Projects • Adherence to the SH Service Guidelines and provision of Baseline Services and other eligible activities detailed in Appendix F. • If proposal includes service funding request from JOHS, the service provider(s) will be a JOHS qualified vendor of homeless services (Appendix H). Service providers that are not currently qualified vendors with JOHS are also welcome and must successfully complete a JOHS Request for Programmatic Qualifications (RFPQ) prior to being eligible to contract with JOHS for support services funding. JOHS will facilitate an RFPQ process for supportive housing services within the next fiscal year. • Unless required otherwise by a particular services funder, SH unit referrals will come through Multnomah County Homeless Coordinated Access Systems (youth, family, DV, adults, veterans) (http://ahomeforeveryone.net/coordinatedaccess). Exceptions may be made by the City of Portland and JOHS to better meet the needs of priority populations. • Application narrative must include a SH Services Plan (Form E) that demonstrates effectiveness to serve the priority population(s), including a plan to offer culturally responsive and/or culturally specific services and implement low barrier screening criteria. Availability of the Risk Mitigation Pool In addition to the funding indicated, PHB’s Risk Mitigation Pool (RMP) will be available to all SH units funded under this M-BOS. The RMP was established to minimize the risks to owners and developers of affordable housing dedicated to serving households designated by the City as SH. The RMP provides support by reimbursing owners for some financial losses, beyond those typical of affordable housing, associated with operating SH units. 15 Metro Bond Opportunity Solicitation, Spring 2021
VI. Additional Considerations In addition to the Investment Requirements and Preferences in Sections III, IV and V, development teams should keep in mind the following as they are crafting their proposals: • The amounts shown in Section I for JOHS are maximums, pertain to SH units only, are planned to be ongoing but are subject to appropriation. If services funding does not materialize, units will convert to non-SH units restricted at 30% AMI. • Developer/Sponsor may apply for one or more sites or projects. PHB will not consider multiple proposals from the same development team for the same site. For projects to qualify for using Project Based Section 8 Vouchers (PBS8): • A minimum 9 vouchers per project. • With the exception of the minimum 120 SH units, the PBS8 vouchers should be programmed for family-sized units (2-bedrooms or more) targeted for very low-income households earning 30% AMI or below. • Projects planning to have SH must have 9 or more SH units in order to receive PBS8 vouchers. • Units must be made available to households with adverse credit, rental, and legal histories and very limited income. • For projects with existing structures, a new HUD rule requires the developer to sign a Housing Assistance contract before demolition activities can begin, if not already demolished prior to the release of the M-BOS. • Home Forward, a Public Housing Authority (PHA), will use the City of Portland’s location policy as the basis for selection process. It is the PHA’s goal to select sites for PBS8 housing that provide for deconcentrating poverty and expanding housing and economic opportunities. When approving sites for PBV housing, the PHA will consider both local practices and site location in census tracts that have poverty concentrations of 20 percent or less. The PHA will grant exceptions to the 20 percent standard where the PHA determines that the PBS8 assistance will complement other local redevelopment activities designed to expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent. Financial metrics: • Sufficient hard and soft costs contingencies and reserves (see Appendix B: Underwriting Metrics) should be imbedded in each proposal to ensure that the project could be completed without any additional PHB funds. • Projects should incorporate adequate operating expenses on a per annum basis to serve the targeted population. • Project pro formas should assume that rents will be set at 60% AMI for units receiving PBS8 vouchers. 16 Metro Bond Opportunity Solicitation, Spring 2021
• Projects should balance amenities (such as community rooms, etc.) and durability (such as unit finishes) with unit costs/subsidy to ensure the population served can reside long term in the affordable units. • Project evaluations will emphasize expediency and cost efficiencies in all aspects of building design, construction and operations. Innovations that can reasonably be expected to result in demonstrated lower costs are encouraged. • All units receiving PHB subsidy will be regulated as to affordability for 99-years. • The City will charge a Program Delivery Fee (PDF) on each awarded project consistent with Measure 102 and the LIS. While the PDFs will be assessed based on the face amount of the Bond funds lent, the fees are designed to cover costs associated with the City’s oversight and monitoring of the underlying projects to be built and/or acquired, from the time period during which the City facilitates project selection and approvals until the project is closed out. The PDF will be outside of the subsidy per unit limits. • PHB recognizes there is a “creative tension” inherent in publicly financed projects. PHB strongly discourages manipulation of pro forma assumptions to produce a desired outcome, such as lowering expenses to produce more favorable net operating income. The M-BOS, particularly, has prescribed underwriting metrics which must be met as outlined in Appendix B. PHB encourages the honest reporting of pro forma assumptions and reserves the right to reject proposals that appear to portray misleading financial information. Communications: In coordination with PHB, awarded project sponsors will be required to include Metro Housing Bond and PHB branding and information for all Bond-funded projects. Project sponsors will be required to work with Metro and PHB staff to plan any event recognizing, celebrating or commemorating any Bond-funded project ground- breaking, completion, ribbon cutting or opening. Project sponsors will also be required to officially recognize the Metro Bond Measure as a funding source at any such event, and will provide a speaking opportunity for the Metro elected official representing the district in which the project is located, if such opportunities are provided to other public officials. Additional ongoing communications will include, but not be limited to press releases, marketing and procurement ads, website and social media posts and construction site signs/banners, and permanent markers in completed buildings. Projects awarded PBS8 vouchers will also include Home Forward’s logo in the project’s marketing materials. PHB will also require project sponsors to provide resident stories, photos and data on outreach and referrals during the lease up of Bond-funded projects for use in Metro Housing Bond newsletters and annual progress reports. Community Engagement: Projects will be required to plan, conduct and report on community engagement activities to inform project outcomes that support the needs of future residents. This could include engagement conducted previously by 17 Metro Bond Opportunity Solicitation, Spring 2021
the developer to shape the vision for a project and/or plans for further engagement to inform the design or programming of the project to meet the needs of historically and presently marginalized community members. Priority will be placed on developments that demonstrate, either directly or through partnerships with culturally specific agencies and other groups, a successful track record of working with BIPOC communities, targeted methods of outreach to increase access in different cultural communities, and support for vulnerable households in neighborhoods where there are established social support networks in place. (See Form D – Equity Plan) Advancing Racial Equity: PHB will use a racial equity lens at the forefront and throughout the evaluation process when assessing opportunities for new affordable housing and Supportive Housing projects. Project teams will be required to show demonstrated success and commitment to advancing equity in accessing development opportunities. Project teams will be asked to submit information on their qualifications related to developing, owning, managing and/or providing culturally specific and culturally responsive services for BIPOC households, as defined by Multnomah County1. Additionally, PHB will be asking project teams to describe how the project location reflects considerations related to racial equity (e.g. geographic distribution of affordable housing, access to opportunity, strategies to address racial segregation, and strategies to prevent displacement and stabilize communities). Projects must also include strategies to include economic opportunities for BIPOC community members by meeting or exceeding PHB’s and the City’s goals for equity in contracting, including 30% in construction contracts and 20% in professional services going to certified Disadvantaged, Minority, Women, Emerging Small Business or Service-Disabled Veteran Owned Firms (DMWESB-SDV). Other examples include, but are not limited to, creating housing that is culturally appropriate in design and form, having partnerships with culturally specific agencies to effectively reach and serve priority communities, advancing PHB’s Apprentice and Workforce Diversity goals, and meeting PHB’s Affordable Housing Green Building policies and accessibility standards (see Appendix D and Appendix E). In addition, PHB will prioritize projects addressing historic and present racism and lack of housing access and opportunity experienced by BIPOC communities. This will include projects sponsored by culturally specific agencies and/or projects sponsored by partnerships in which culturally specific agencies have a meaningful role in project design or operations, leasing, service provision, or as sponsors demonstrating commitment and 1 Defined in Multnomah County’s “Contracting and Procurement for Culturally Specific and Responsive Services” found here: https://multco.us/diversity-equity/news/multnomah-county-issues-guidance-contracts-culturally-specific-services 18 Metro Bond Opportunity Solicitation, Spring 2021
experience in effectively reaching and serving BIPOC communities. Proposers should consider how equity is addressed throughout their proposals and within their organizations in the Equity Plan Narrative (Form D). 19 Metro Bond Opportunity Solicitation, Spring 2021
VII. PHB and Metro-Owned Sites: Additional Requirements and Preferences 1. 5020 N. Interstate Avenue In 2016, PHB purchased the 0.46-acre, half-block site in the Overlook neighborhood of North Portland for the purpose of developing affordable housing. A previously awarded development could not successfully secure financing for a mixed-income, mixed-use, for-sale multifamily condominium project. This M-BOS seeks proposals to develop the site as multi-family, affordable rental housing. The previous project design is permit ready for a 64-unit, six-story development, including 23 two-bedroom and 25 three-bedroom units. The property is located in the Interstate Corridor Urban Renewal Area (ICURA) and is subject to PHB’s N/NE Preference Policy. See Appendix K for addition information regarding the 5020 N. Interstate Avenue site and terms. Available Resources • 2021 M-BOS funding: Maximum $143,000/unit. • Home Forward’s PBS8s: no vouchers will be available for this site. • Land: Simple Disposition for nominal fee conveyed through Disposition and Development Agreement with PHB. • Regulatory Agreement: 99-year PHB Regulatory Agreement in a senior position to the commercial lender trust deed. • Status: Project is Permit-Ready if using existing Carlton Hart Architects designs. Investment Requirements • Minimum residential units: 64 • Average bedroom count: 1.75 minimum, Permit-ready design is 2.14 • Minimum 30% AMI units: 15% of total units spread across bedroom size. All remaining units to be regulated at or below 60% AMI. • N/NE Preference Policy: All projects located within the Policy’s service boundaries of the Interstate Corridor URA are required to follow the N/NE Preference Policy for unit marketing and lease-up to address the history of displacement and gentrification in North and Northeast Portland. • All other requirements contained in Section III of this M-BOS. Preference Criteria Projects that meet the following may be prioritized for funding: • Projects proposing to use the permit-ready design plans, including unit mix and floor configurations demonstrating an expedited project schedule. • Commercial space that provides needed goods and services to the residents and should support neighborhood business growth to the Overlook neighborhood and community. The commercial space must be located on the ground floor and front on N. Interstate Avenue. 20 Metro Bond Opportunity Solicitation, Spring 2021
Additional Site Information See Appendix K for site information. Documents include: 1. Complete design set including correspondence with Bureau of Development Services from Carlton Hart Architects 2. Title Policy 3. Environmental / Other Due Diligence Reports from Hart Crowser 4. Geotech report by GeoDesign Inc. 5. Survey by Westlake 6. Previous appraisal by Collier for a for-sale condo project 2. 432 NE 74th Avenue In September 2019, Metro’s Transit Oriented Development Program purchased a 1.65-acre parcel of real property at 432 NE 74th Avenue, formally occupied by the Trinity Broadcasting Network’s broadcasting studios, for purposes of redevelopment into transit-oriented affordable housing. The site currently contains a 19,250 square foot, single-story commercial building and is zoned CM2 and R2.5 (see Appendix L for more information). The selected developer will be responsible for demolishing the existing building to facilitate the development of new affordable housing. Costs for demolishing the building are estimated at $500,000 and should be included in the proposed budget within the $143,000/unit maximum subsidy. Development teams should assume construction of a new building within current zoning allowances to take advantage of the additional height and density. Verizon holds a land lease permitting the use of a portion of the site for a cell phone tower and transmission equipment. The transmission equipment is located within the existing structure on the site and relocation of this equipment will need to be separately renegotiated with Verizon. Metro and Verizon have held preliminary discussions regarding relocating Verizon’s equipment and Verizon is amenable to on-site relocation in exchange for reimbursement of any relocation costs. Metro is also currently leasing a portion of the building to African Youth Community Organization (AYCO). Metro’s lease with AYCO runs through December 2022. Metro has conducted an extensive early stakeholder engagement process to identify community values for the development of the site consistent with Portland’s Local Implementation Strategy and unit production targets. This process directly engaged individuals with experience of homelessness and living in affordable housing, individuals who work for organizations representing BIPOC communities, and individuals from local churches, schools and businesses. Metro also received survey responses from over 800 individuals contacted through networks associated with the stakeholder group. This work resulted in value statements around outdoor space, ground floor uses, resident services and programming and engagement to be done by the developer. Addressing the identified community values is a preference criterion of this M-BOS. A link to download the Community Stakeholders Value Statement and a report summarizing the results of the survey is included in Appendix L. 21 Metro Bond Opportunity Solicitation, Spring 2021
Available Resources • 2021 M-BOS funding: Maximum $143,000/unit in PHB Metro Bond and Metro Regional Site Acquisition subsidy. Proposers are not responsible for determining the split between Portland’s Eligible Share of the Metro Housing Bond and Regional Site Acquisition funds. • Joint Office of Homeless Services: Maximum $10,000 per unit per year for supportive services for all SH units. • Home Forward’s PBS8s: minimum 40 vouchers for SH units • Land: conveyed to ownership and/or sponsor entity through Disposition and Development Agreement with Metro TOD Program. Additional Resources May Include: Metro’s Transit Oriented Development (“TOD”) and Urban Living Infrastructure (“ULI”) grants may be available to support certain project costs up to a combined total of $750,000. TOD grants are available to offset costs associated with mixed uses within a single building, higher density construction techniques, or affordability within new construction projects located less than ¼ mile of Frequent Service Bus or ½ mile from MAX and Portland Streetcar stations. ULI grants are available to support community serving (open to non-residents) ground floor uses within TOD eligible projects. Program information, including eligible uses, may be found at https://www.oregonmetro.gov/tools-partners/grants-and-resources/transit-oriented-development-program • Metro TOD grants: up to $500,000 to support cost premiums associated with higher density, affordable, and mixed-use development. • Metro Urban Living Infrastructure grants: up to $250,000 to support community serving and/or commercial ground-floor uses Investment Requirements This M-BOS seeks proposals to develop the site as multi-family affordable housing with programming for families and Supportive Housing for singles/couples. The project may be designed as separate buildings or entrances to best serve both priority communities. • Minimum residential units: 125 • Minimum units for households at 30% AMI or below: 41% of total units including a minimum of 15% of non-SH units without PBS8 vouchers. • Average bedroom count: 1.5 overall (1.0 for SH units and 1.75 for remaining units) • SH units: minimum 40 units programmed for single adults/couples in Enhanced, Recovery-Oriented or Integrated SH eligible populations listed in Section V. • PBS8: All SH units will be eligible for project-based Section 8 vouchers with a 60% AMI value with a preference for households earning 30% AMI and below. • SH Services Plan demonstrates appropriate and necessary support services to meet the needs of the proposed target population(s). • Necessary and appropriate operating support for both SH and family populations. • All other requirements contained in Section III of this M-BOS. 22 Metro Bond Opportunity Solicitation, Spring 2021
Preference Criteria Projects that meet one or more of the following may be prioritized for funding: • More than 125 units • More than 50% larger, family-sized units (2-bedrooms or larger) • Projects achieving a total floor area ratio of 1:1 or greater • Projects that address Community Stakeholder Values (see Appendix L) Additional Site Information See Appendix L for site information. Documents include: 1. Zoning Map 2. Verizon Lease 3. Site Location Map and Information 4. Title Policy 5. ALTA Survey 6. Phase I ESA 7. Phase II ESA 8. Community stakeholder values 9. Engagement report: new affordable housing at NE 74th and Glisan 23 Metro Bond Opportunity Solicitation, Spring 2021
VIII. Application Requirements Development teams must submit the following minimum application materials. For each Project submitted, total combined page limit for the Project Overview Narrative (#3) is 15 pages. Page limit for the Equity Plan (#4) is 6 pages and the Supportive Housing Services Plan (#5) is 4 pages. 1. Sponsor Cover Page (see Form A) 2. PHB Funding Application (see Form B) 3. Project Overview Narrative (see Form C) 4. Equity Plan Narrative (see Form D) 5. SH Services Plan Narrative form (see Form E). Only required for projects proposing Supportive Housing units (Enhanced, Recovery-Oriented, or Integrated). 6. An Affirmative Fair Housing Marketing Plan (see Form F) 7. Sponsor Statement of Financial Capability (see Form G) 8. Preliminary Budget/Pro Forma including projected sources and uses, income and expense breakdown, and 30-year cash flow projections. Use of Form H in electronic/”live” (not PDF) format is required. Proposals submitted without a “live” version may be eliminated from consideration. 9. Readiness: fill out, to the greatest extent possible, the “Proposed Project Schedule” (see Form I) 10. Acquisition and Relocation Questionnaire (see Form J) 11. Organizational financial statements for last two years. Please clearly mark “confidential” if these financial statements are to be kept confidential in event of a public records request. Project sponsors who already submit their last two years of financial statements to PHB as a result of existing projects in PHB’s portfolio are not required to submit financial statements as part of their M-BOS application. All pages in the application must be numbered. Pages should use a minimum of 12pt font and ½” margins. Design/architecture is NOT required and is only encouraged to the minimum extent necessary for development teams to comply with other submittal requirements. Signed and dated proposals must be submitted by 3:00 p.m. on July 2, 2021 to be considered responsive. Electronic submission of complete proposal packages, including all application narrative forms and documentation should be uploaded to PHB’s secure M-BOS applications folder here: M-BOS Applications 24 Metro Bond Opportunity Solicitation, Spring 2021
PHB recommends saving all application documents with the name of the project or development team and creating a zip file so all application materials upload as a complete proposal package. If teams are unable to submit electronically, contact Tanya Wolfersperger by June 15, 2021 to discuss alternatives. 25 Metro Bond Opportunity Solicitation, Spring 2021
IX. Selection Process and Evaluation Criteria Upon receipt, all applications will be reviewed for adherence to the M-BOS’s submittal requirements. PHB estimates the process for reviewing and selecting projects will take 8-12 weeks. PHB anticipates the selection process to include the following steps: 1. Threshold Review 2. Evaluation Review Committees and Ranking 3. Decision by the Commissioner in Charge PHB and its partners at their sole discretion may employ the following selection process and criteria in recommending projects for award of M-BOS resources. 1. Threshold Review: PHB will review applications for meeting minimum threshold requirements. This step is to ensure that applications have met the M-BOS criteria prior to review by the Technical/Financial Feasibility Review and the Community Review committees. Projects that do not meet the minimum threshold requirements will not be evaluated further and will not be eligible for award. The threshold review will examine: A. Bond Maximum Subsidy per Unit B. Completeness of the proposed financing C. Adherence to Investment Requirements D. Readiness and Proposed Project Schedule E. Target population and programming including SH and Equity Plan 2. Evaluation Review Committees and Ranking: Proposals meeting the minimum threshold requirements will be reviewed and evaluated by two committees: • Technical and Financial Feasibility Review Committee: The purpose is to review then rank proposals based on all solicitation requirements and preferences, materials submitted, and the Evaluation Criteria. Results of the Technical and Financial Feasibility Review Committee process will be shared with the Community Review committee. • Community Review Committee: The purpose is to review then rank proposals based on all solicitation requirements and preferences, materials submitted, the Evaluation Criteria, the ranking of the Technical and Financial Feasibility Review Committee, alignment to community needs and priorities of Portland’s Local Implementation Strategy (LIS). 26 Metro Bond Opportunity Solicitation, Spring 2021
It is expected that development teams may also be asked to make presentations to or be interviewed by the evaluation committees. The dates for these presentations are not yet determined but may occur roughly 4-6 weeks after the submission deadline. Projects will be evaluated and ranked based on at least the following: • Alignment with the Bond Framework and LIS: o Need: population, geography o Impact: alignment of resident services, SH services, location, fair housing marketing plan and outreach plan to Bond goals and priorities o Advancing Racial Equity: Content, quality and reasonableness of all equity related submissions including the Equity Plan. • Investment Requirements • Preference Criteria • Qualifications and experience of the Development Team • Quality and feasibility of SH Services Plan, if applicable, including service provider(s) capacity and experience • Reasonableness and feasibility of all financial materials submitted including the project budget and proforma • Readiness to proceed with the project and assumptions regarding the project schedule. Content and quality of the proposal, the Project Overview Narrative, all other required materials and materials submitted voluntarily by the Development Team. The review committees will use an ordinal ranking system with proposals ranked 1 considered the highest ranked. Proposals receiving higher rankings will have a greater likelihood, though are not guaranteed, for being recommended for a funding award. All proposals for non-PHB owned sites will be ranked against each other although PHB may have to use multiple Community Review Panels for evaluation based on the total number of proposals submitted. Proposals for the PHB or Metro-owned sites will not be ranked against any proposal on a non-PHB owned site. Further, proposals for PHB or Metro-owned sites will only be ranked against other proposals for the same site. PHB anticipates the total number of projects recommended and awarded will be a function of the committees’ ranking combined with the availability of funding and the achievement of progress measures toward overall Metro Housing Bond programmatic goals. 3. Director Recommendation to the Commissioner in Charge Once committee rankings are completed, the PHB Director synthesizes the recommendations and other information and makes a recommendation to the Commissioner in Charge. 27 Metro Bond Opportunity Solicitation, Spring 2021
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