REQUEST FOR LENDER FINANCING PROPOSALS
for
ACQUISITION, CONSTRUCTION & PERMANENT DEBT
for
BOULDER HOUSING PARTNERS’
WONDERLAND CREEK TOWNHOMES PROJECT
Date: March 3, 2015
Requested Return: March 18, 2015
Boulder Housing Partners 4800 Broadway
Boulder, Co. 80304 (720) 564-4628
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Request for Proposals
Acquisition, Construction and Permanent Debt
Contents
A. Scope of Work and Process 1. Scope of Work
2. Process and Deadlines
B. Background and Services Requested 1. About Boulder Housing Partners 2. Project Description
3. Services Requested C. Submittal Requirements 1. Elements to Include
2. Evaluation Criteria and Weight Factors D. General Information
1. Submittal Information 2. Insurance Requirements 3. Attachments
3 A. Scope of Work, Process and Deadlines
1. Scope of Work
Boulder Housing Partners (BHP) seeks a lender to acquire land and construct 45 housing units in Boulder, CO. Four of the units will be sold to Habitat for Humanity and developed as single-family homes. The remaining 41 will be retained as market rate townhome rentals by BHP. Cash flow from the property will be used to underwrite BHP’s affordable housing mission. We are seeking competitive finance terms to
provide maximum funding for acquisition, construction and long term permanent financing of the project. Repayment of the loan will come from operations of the completed units. Our target loan amount is at least $14,500,000, however we would be interested in receiving proposals for larger or smaller loans as dictated by your
underwriting standards.
2. Process and Deadlines
Submittals are to be received at the address below no later than March 18th at 4:00 pm. Please provide submittals via email to Jessica Kenney at:
The submittals will be reviewed by an evaluation committee. The evaluation
committee will review and rate each submittal based on the evaluation criteria listed in this document. If needed, the same evaluation committee will also conduct interviews. Scores from the submittal and the interview will be used in making the final selection.
4 B. Background
1. About Boulder Housing Partners
BHP is the Housing Authority for the City of Boulder with a mission to provide quality and affordable housing for the residents of our community. We build, acquire, manage and own housing within the City of Boulder to fulfill this mission. Currently, our portfolio consists of over 1,100 homes that have been developed or acquired by BHP and are valued at over $200,000,000. BHP was the master developer of the renowned Holiday Neighborhood in North Boulder, and acted as developer and now manager of Bridgewalk Community and the newly-constructed High Mar Community in South Boulder.
BHP is governed by a nine-member board of Commissioners, all of whom are appointed by the mayor and one of whom is a current City Council member. Day-to-day operations are supervised by the Executive Director. There are approximately 65 staff members in the organization. Boulder Housing Partners performs functions including: property management, development of new properties, acquisition of new units, resident services, administration of Section 8 vouchers, and maintenance services. Currently none of our property management is contracted privately.
2. Project Description
Wonderland Creek Townhomes is a new construction, market-rate townhome
project that is situated on the northeast intersection of Kalmia Avenue and 28th Street in Boulder, CO. This property is just over 5 acres and will offer 41 two and three
bedroom townhomes as well as 4 single-family Habitat for Humanity Homes. All townhomes will have private outdoor space and a garage. This project will offer the first new townhome product in Boulder in 15 years.
This project is entitled and construction-ready. Boulder Housing Partners has entered into a Purchase and Sale Agreement to purchase the land and anticipates closing on or before April 20th, 2015. BHP plans to maintain these units as market-rate in order to support deeply affordable housing within the BHP portfolio.
3. Services Requested
BHP has $10 million dollars of annual bank qualified tax exempt borrowing power. We are open to both taxable and bank qualified tax exempt interest rate proposals, as well as any other loan product your institution offers that you believe would be advantageous to the project.
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Loan Request Summary – Wonderland Creek Townhomes
Requested Loan Amount Approximately $14,500,000 representing the development of
Wonderland Creek Townhomes (approx. $17,00,000)
Interest Rate Fixed rate for the agreed upon term of the loan. Will consider floating rate
during period of construction.
Collateral First deeds of trust on subject property, assignment of rents, UCC filings on
associated personal property
Prepayment Options BHP desires the most flexible prepayment option possible for the requested loan
Tax-exempt and Bank-qualified opinions
BHP will deliver an opinion of counsel acceptable to the lender stating that the interest on the loan will qualify for exemption from Federal and State income taxes based on state and federal law and that the loan can be treated as “bank-qualified” for appropriate institutions, if required.
BHP Contact: Chief Financial Officer Project Manager
Jim Koczela Jessica Kenney
720.564.4603 720-564-4628
[email protected] [email protected]
Proposed Closing Date On or before April 20, 2015
C. Submittal
1. Elements to Include a. Submittal Letter;
b. Brief list and description of similar projects in which the lender has participated in the past three years;
c. List of individuals and their contact information for relationship management, underwriting, closing, and performing ongoing asset management related to this loan.
6 2. Evaluation Criteria and Weight Factors
Interest rate pricing spread 0-65 pts
Required guarantees, repayment terms,
origination fees, counsel fees, due diligence costs,
and other costs 0-25 pts
Lender profile and experience of key personnel 0-10 pts 3. Submittal Information
Requests for Clarification and /or Additional Information: Please submit all questions, requests for clarification and/or additional information to Jessica Kenney with copy to Jim Koczela. Due date for questions and clarifications is March 9th at 2:00 pm. Clarifications will be emailed to all solicitation recipients by March 11th at 2:00 pm. Jessica Kenney 720-564-4628 [email protected] Jim Koczela 720-564-4603 [email protected]
Proposal Due Date: Please submit final proposals and term sheets via email to Jessica Kenney no later than March 18, 2015 at 4:00pm. Only those submittals received by the specified date and time will be considered. Any submittal received after the specified date and time will not be reviewed.
D. Insurance Requirements: Generally, the following coverage is required:
Commercial general liability--$1,000,000 single occurrence / $2,000,000 general aggregate coverage.
Worker's Compensation Insurance--equal to or at least $100,000 per employee
Automotive Insurance--$1,000,000.
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Boulder Housing Partners does business in accordance with the Federal Fair Housing Law (The Fair Housing Amendments Act of 1988). It is illegal to discriminate against any person
because of race, color, religion, sex, handicap, family status, national origin, or sexual orientation.
E. Attachments
Attachment A – Project Proforma Attachment B – BHP 2012 Financials Attachment C – BHP 2013 Financials
Attachment D – BHP 2014 Financials – Unaudited Attachment E – BHP Schedule of Real Estate Holdings F. BHP Reservation of Rights:
1. BHP reserves the right to reject any or all proposals, to waive any informality in the RFP process, or to terminate the RFP process at any time, if deemed by BHP to be in its best interests.
2. BHP reserves the right not to award a contract pursuant to this RFP.
3. BHP reserves the right to terminate a contract awarded pursuant to this RFP, at any time for its convenience upon 10 days written notice to the successful bidder. 4. BHP reserves the right to retain all proposals submitted and not permit withdrawal for a period of 60 days subsequent to the deadline for receiving proposals without the written consent of BHP Procurement Officer.
5. BHP reserves the right to negotiate the fees proposed by the bidder if applicable to bid process.
6. BHP reserves the right to reject and not consider any proposal that does not meet the requirements of this RFP, including but not limited to incomplete proposals and/or proposals offering alternate or non-requested services.
7. BHP shall have no obligation to compensate any bidder for any costs incurred in responding to this RFP.
8. BHP shall reserve the right to at any time during the RFP or contract process to prohibit any further participation by a bidder or reject any proposal submitted that does not conform to any of the requirements detailed herein.
9. BHP reserves the right to discontinue the RFP process at any point in time.
10. Proposals are subject to public review via open records requests. Once the award
of the project has been made, proposals may also be shared with non-successful respondents. 11. BHP reserves the right, at its discretion, to contract with the selected lender for any additional lending opportunities for this project and for future projects for up to three years.