440 W. Kelly Avenue
Please find the Request for Proposals to develop deed restricted housing at 440 West Kelly Avenue, below. All responses are due by 4:00 PM on April 5th. An information session will be held on February 19th at 1:00 PM at 320 S. King Street. Questions will be accepted until March 22, 2019 and answers will be posted on a rolling basis on this website.
Questions & Answers
Can the 10' ROW along the south property line be used for vehicular access?
Right now, the 10' ROW may not be used for vehicular access. Respondents should assume access from Kelly Avenue only.
What are the terms of the ground lease?
The Housing Authority will provide a long-term (either 50 year or 99 year) ground lease at a rate of $1 per year.
Does it matter if the developer is local or from out of town?
No, we do not care if the developer is local or from out of town. The last RFP was awarded to an out of town developer. Ultimately, we are looking for the best project.
Would the Housing Authority consider financing the project?
Who sets the pricing for the workforce units?
The developer sets the initial sales price. Appreciation is then based on CPI capped at 3%.
For how much do Workforce Ownership units sell? What is the demand for this type unit?
Workforce Ownership units are a new product for the Housing Department. The pricing goal is to set the sales price at an amount that is affordable to households earning more than 120% of median family income. The chart below shows what the median family income is for one, two, and three person households. It also shows what pricing looks like for households earning 120%, 200%, and 250% of median family income. There is no cap on the sales price for these units; it's simply what the market will bear. Households who purchase these homes are only required to provide a down payment of 3.5%.
Price @ 120%
Price @ 200%
Price @ 250%
What kind of drawings are you looking for at time of submission?
The RFP states that detailed architectural plans are not required at proposal submission. Respondents are required to outline the design approach and provide site plans that: show square footage, broken down by use/type; building height and use broken down by floor; and proposed architect.
Are accessible units required as part of this project?
According to building code, one unit must be fully accessible (Type A) and the remaining units must meet the type B requirements.
Will the Town, County, and/or Housing Authority consider providing additional funding for this project?
Additional funding could be available, based on the affordability and quality of units proposed. However, responses that provide livable units at an appropriate price point and do not require additional public funds are preferred.
It is unclear whether the developer or JHAH will be taking on the soft costs of this work. We need to know if these need to be included in the pro forma of if JHAH will make this (relatively minimal) investment.
The developer is expected to take on the soft costs of the project. Having said that, there is nothing prohibiting a developer from asking the Housing Authority to provide additional funding for the project (see question, above).
Since the land is and will continue to be owned by JTCHA, would the developer be able to borrow against it? Can it be used as equity? We assume not, but if there is any way, it would be helpful in securing financing.
A developer should easily be able to secure financing with a long-term ground lease in place – either 50 or 100 years at $1/year.