Title
Request for Proposals for Disposition and Development of Vacant Lots Near Matthew Henson HOPE VI Community
Description
Request authorization for the City Manager, or his designee, to issue a Request for Proposals (RFP) for the disposition and development of 34 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, and authorization to begin negotiations with the recommended proposer.
Report
Summary
Development interest has been identified for vacant City-owned lots near the Matthew Henson HOPE VI Community. The lots were purchased over a period of years from 1995-2008 using non-General Fund funding sources that restrict the use of the lots, primarily to affordable housing. The lots were previously designated as part of the homeownership component of the City's U.S. Department of Housing and Urban Development Matthew Henson HOPE VI Grant Revitalization Plan (the "Plan"). Due to the downturn in the housing market and the high number of foreclosures in Phoenix from 2008 through 2010, construction of the proposed homeownership units was deemed infeasible. As a result, the homeownership component of the Plan was amended and has since been met through a down payment assistance program. However, the City still owns the vacant lots that had been originally designated as part of the Plan.
Staff requests authorization to issue a RFP seeking qualified affordable housing developers for the disposition and development of all 34 vacant lots for affordable single-family, owner-occupied units. 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. The selected developer will be required to take ownership of all the vacant lots and develop the project according to conditions and timelines specified in the RFP. Proposals will be sought from developers who will provide private leverage for development costs and general enhancements to the community. Property addresses and parcel numbers are listed in Attachment A.
The RFP will require performance benchmarks to ensure timely development of the project. If development benchmarks are not met, ownership of any remaining undeveloped lots will revert back to the City unless new benchmarks are determined to be in the best interest of the City. Proposals will be evaluated by a panel that includes City staff and community representatives. The anticipated evaluation criteria for this RFP are detailed in Attachment B.
It is anticipated the RFP will be issued in late spring or early summer 2017. Staff will negotiate business terms with the recommended proposer. The recommended proposal and business terms will be brought to SHEN Subcommittee for review and recommendation, and then to the full City Council for approval.
Financial Impact
There is no impact to the General Fund.
Location
See Attachment A for addresses.
Concurrence/Previous Council Action
This item was heard at the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee on Feb. 21, 2017 and approved by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.