Title
Award Project-Based Veterans Affairs Supportive Housing Vouchers and Project-Based Housing Choice Vouchers for Northern Gardens II (Ordinance S-44364)
Description
Request to authorize the City Manager, or his designee, to award and enter into a contract with Northern Gardens II/Phoenix LP, or a City-approved nominee, for the allocation of 20 U.S. Department of Housing and Urban Development (HUD) project-based Veterans Affairs Supportive Housing (VASH) vouchers and 10 project-based Section 8 Housing Choice Vouchers (HCV) for up to 20 years in accordance with federal VASH and Section 8 HCV guidelines and regulations, subject to future availability of funding of these voucher programs, and to take all actions and execute all documents to effectuate the agreement. Further request authorization for the City Controller to disburse funds over the life of the contract. There is no impact to the General Fund.
Report
Summary
In June 2017, City Council authorized the Housing Department to issue a Request for Proposals (RFP) to create affordable housing utilizing up to 100 project-based VASH vouchers and up to 50 project-based Section 8 HCV. VASH and Section 8 HCV are both rental subsidy programs: participants in both programs pay approximately 30 percent of their adjusted gross income toward rent, and the Housing Department directly pays the difference to landlords via Housing Assistance Payments (HAP). HUD provides the HAP to the Housing Department, which in turn, will pass-through this rental subsidy to Northern Gardens II/Phoenix LP, as landlord for Northern Gardens II, Northern Gardens II/Phoenix LP's proposed project-based affordable housing development.
Procurement Information
The RFP was issued in accordance with Phoenix City Code (PCC) § 43-14 for Competitive Sealed Proposals on Nov. 3, 2017.
Eight proposals were received and reviewed by an evaluation panel, comprised of City staff from the Human Services and Neighborhood Services departments, along with the City of Mesa Housing and Community Development Director, and the Director of National Operations for Cloudbreak Communities, a company that specializes in special needs and veteran housing. The proposals were evaluated on a 1,000-point scale, and were scored based on the following evaluation criteria: Developer Experience; Project Merit/Approach; and Financial Feasibility. The evaluation panel scored the proposals as follows:
- Dunlap Housing (Native American Connections): 863 points.
- Northern Gardens II (Northern Gardens II/Phoenix LP): 752 points.
- Rehoboth Place Phase II (Gorman & Company, Inc., and Rehoboth CDC): 733 points.
- 25th and Bell Residential Development (Chicanos Por La Causa): 681 points.
- El Molino Place (Arizona Housing Inc., and Cardinal Capital Management): 661 points.
- South 7th Village (Helping Hands Housing Services): 655 points.
- Garfield Veterans Housing (Garfield Veterans Housing LLC): 581 points.
- Manzanita Village (Catholic Charities Community Services): 494 points.
The evaluation panel recommended awarding to the top three scored proposals, including Northern Gardens II/Phoenix LP. Award recipients will receive a combination of VASH vouchers and HCVs, with a ratio of two VASH vouchers to one HCV per award. The Housing Department intends to award Northern Gardens II/Phoenix LP 20 project-based VASH vouchers and 10 project-based HCVs.
Northern Gardens II, located at 2223 W. Northern Ave. (District 5), consists of demolition and new construction of a 77-unit permanent housing community. Supportive services will be provided by Arizona Housing Inc., and will include benefits assistance, client support, case plans, group programs, life skills training, financial literacy, collaborative treatment, job training, and 24-hour emergency on-call coverage.
Contract Term
The term of the contract under the Project-Based Voucher program will be up to 20 years in accordance with federal VASH and Section 8 HCV guidelines and regulations, and is subject to future availability of funding of these voucher programs. Any renewal of the contract will be determined at the time of expiration and is subject to future availability of funding.
Financial Impact
There is no impact to the General Fund. The VASH and Section 8 HCV programs are federally-funded. The City's allocation of VASH and Section 8 HCV for projects with Low Income Housing Tax Credit (LIHTC) equity is contingent upon receiving a LIHTC award from the Arizona Department of Housing in the 2018 competitive round.
Concurrence/Previous Council Action
This item was heard at the Sustainability, Housing, Efficiency and Neighborhood Subcommittee on March 21, 2018. On June 20, 2017, City Council authorized the Housing Department to issue an RFP to create affordable housing utilizing up to 100 project-based VASH vouchers and up to 50 HUD project-based Section 8 HCVs with supportive services.
Location
2223 W. Northern Ave.
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.