Title
Authorization to Award Contract to Habitat for Humanity Central Arizona for the Disposition and Development of Vacant Lots Near the Matthew Henson Hope VI Community (Ordinance S-44143)
Description
Request to authorize the City Manager, or his designee, to enter into a contract(s) with Habitat for Humanity Central Arizona (Habitat), execute all related agreements and documents, and take all action necessary and appropriate to effectuate the disposition and development of residential City-owned vacant lots located near the Matthew Henson HOPE VI Community in the general vicinity of 7th Avenue and Buckeye Road for affordable homeownership. Further request authorization for the City Controller to expend up to $100,000 for associated real estate transaction costs. There is no impact to the General Fund.
Report
Summary
On March 22, 2017, City Council authorized staff to issue a Request for Proposals (RFP) for the disposition and development of City-owned vacant lots in the general vicinity of the Matthew Henson HOPE VI Community near 7th Avenue and Buckeye Road. The parcels, zoned R-3, are located between 7th and 15th avenues, including lots on the west side of 15th Avenue, from Pima to Hadley streets. These lots were purchased over a period of years from 1995 through 2008 using non-General Fund funding sources that restrict the use of the lots, primarily to affordable housing. Property addresses and parcel numbers are listed in Attachment A. Attachment B includes a map identifying the area where the lots are located.
Procurement Information
The City received two proposals in response to the RFP that was issued on Aug. 8, 2017. The proposals from Chicanos Por La Causa (CPLC) and Habitat were evaluated on proposed development approach; qualifications, experience and financing capacity; project cost and feasibility; and project timeline. The evaluation panel, comprised of City staff and an external representative, awarded the scores as follows:
- Habitat for Humanity Central Arizona: 800.25
- Chicanos Por La Causa: 590.25
Habitat will build 31 new Energy Star-certified single-family owner-occupied homes over a five-year period. Habitat will offer financial literacy and homeownership financial fitness training to the qualified homebuyer, along with a zero percent interest mortgage note, and principal loan amount based on appraised value. Additionally, Habitat will implement their Neighborhood Revitalization Program to rehabilitate up to 80 owner-occupied homes within the neighborhood over five years. Habitat will survey and engage the community to identify additional community amenities. All final business terms and benchmarks will be negotiated prior to entering into an agreement. If development benchmarks are not met, ownership of any remaining undeveloped lots will revert to the City unless new benchmarks are determined to be in the best interest of the City.
Financial Impact
There is no impact to the General Fund. Disposition of the vacant lots will be exchanged for creating affordable homeownership for homebuyers whose income is at or below 80 percent of AMI. Funds are available in the Housing Department's Affordable Housing Fund for costs associated with real estate transactions.
Concurrence/Previous Council Action
On March 22, 2017, City Council authorized the Housing Department to issue the RFP for the disposition and development of the vacant lots. This item was heard at the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee on Nov. 28, 2017, and approval was recommended by a vote of 3-0.
Location
See Attachment A for addresses.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.