Strategic Purchasing Division Operation Contracts Cost Reduction Friday March 13, 2009

1. Pre-Proposal Conference S78-T26622 CHDO Demonstration Single-Family Residential Development Program June 19, 2018 Bi Strategic Purchasing Division Operation Contracts Cost Reduction Friday March 13, 2009 Presented by Calvin D. Wells, Deputy Director Strategic Purchasing Division Katie Moore Procurement Specialist

2. PRE-BID CONFERENCEAGENDACHDO DEMONSTRATION SINGLE-FAMILY HOME DEVELOPMENT I. Opening Remarks Katie Moore Procurement Specialist II. Solicitation Overview Katie Moore III. Project Scope and Overview HOUSING-SME(s) IV. Questions & Answers Partnering to better serve Houston

3. II. Solicitation Overview The City of Houston is seeking Community Housing Development Organizations (CHDOs) qualified Contractor(s) wanting to enter into an agreement with the City to build the new construction of at least 20 sustainable designed, ENERGY STAR certified single-family affordable homes. Solicitation due date: Thursday, July 12, 2018 by 2:00 p.m., CST Requests for additional information and questions due date: Tuesday, July 3, 2018 by 3:00 p.m., must be received electronically and directed to: Katie .Moore@houstontx.gov Partnering to better serve Houston

4. ADDITIONAL INFORMATION AND SPECIFICATIONS CHANGES: Responses to questions received from potential Bidder(s) and any changes to specifications shall be confirmed in writing by Letter(s) of Clarification and will be posted under the solicitation file prior to the Bid due date. Partnering to better serve Houston

5. NO CONTACT PERIOD:All inquiries regarding the solicitation are to be directed to the designated City Procurement Buyer Katie Moore (katie.moore@houstontx.gov) or 832-393-8710Refer to Part VI – Special Conditions, A No. Contact Period (Page 17) Partnering to better serve Houston

6. Bid Package Requirements: In addition to the Electronic Bid Form, the below Items must be completed and submitted with the proposal. • 1.0 Affidavit of Ownership • 2.0 Fair Campaign Ordinance • 3.0 Statement of Residency • 4.0 Conflict of Interest Questionnaire • 5.0 Contractor Ownership Disclosure Ordinance • 6.0 Contractor’s Questionnaire • 10.0 Anti-Collusion Statement • 11.0 Auditable financials statement (note: Place in the sealed envelope with price proposal/fee schedule) • 12.0 Submit Two (2) sealed printed hard copies of the technical proposal and six (6) electronic copies of the technical proposal on Memory Sticks/Flash Drives • 13.0 Two (2) sealed printed hard copies of the price proposal/fee schedule in a separate single sealed envelope; six (6) electronic copies of the price proposal/fee schedule on thumb drives • 14.0 Exhibit I-A, Exhibit I-B, and Exhibit I-C Partnering to better serve Houston

7. Required forms are available at the City of Houston Strategic Procurement Forms website: http://purchasing.houstontx.gov/forms.shtml Partnering to better serve Houston

8. Contract Compliance • MWSBE • § 24 C.F.R Part 85 • COH Chapter 15-Article V • Good Faith Efforts • Construction contracts – related to construction projects. Citywide MWBE goal = 34% • Professional Services contracts– require a professional license (e.g. Architect, Engineer, Attorney, Accountant, etc.). Citywide MWBE goal = 24% • Purchasing contracts– provide the supply of goods and non-professional services. Citywide MWBE goal = 11% Responsibilities By Role Owner/Developer ● Adhere to all provisions of Loan Documents General Contractor ● Collect All Compliance forms /All Subcontractors/Vendors/Suppliers ● Good Faith Efforts to achieve Goal (Contact Will Norwood, OBO 832-393-0935) ● Report payments (B2GNOW for All Subcontractors/Vendors/Supplies) ● Deviation Request – mutually agreed upon and approved by HCDD Contract Compliance ● Prime Contractor first point of contact ● Enforce and monitor the project compliance ● Technical assistance is available ● Provide monthly Compliance Status Reports, Site Audits, and Commercially Uniform Functional Audits Partnering to better serve Houston

9. Contract Compliance Section 3 • A provision of the Housing and Urban Development Act of 1968. • Intended to ensure that opportunities for: • Training • Employment • Contracting • Are generated for low to very-low income residents or businesses that reside within the City of Houston. Also known as Section 3 Residents and Businesses • Section 3 is applicable when: $200,000+ is awarded per project • When a project receives a cumulative amount of $200,000+ from one or several grants • $100,000+ is awarded per contract • Applies to General Contractor and Subcontractors. • Excludes Supplier/Material Subcontractors. Partnering to better serve Houston

10. Section 3 Thresholds • 30% New Hire Resident Participation • 10% Hard Cost Construction • 3% Soft Cost • Termination of Contract • If Contractor(s) fails to comply with the terms of the contract documents, HCDD may temporary suspend/terminate the contract at any time. • Suspension, Debarment, Suspension or Limited Denial of Participation. • Upon termination, HCDD may also include Contractor(s) on Nationwide Debarred and Suspended List of Contractors. Partnering to better serve Houston

11. III. PROJECT SCOPE AND OVERVIEW Partnering to better serve Houston

12. Summary • To expand the supply of decent, safe, sanitary, and affordable housing with the primary focus on housing for low, very low, and extremely low-income families. • Expand the capacity of nonprofit and Community Housing Development Organizations (CHOO) to plan and implement strategies for developing affordable housing • To strengthen the ability of local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing. • To encourage public, private, and non-profit partnerships to address affordable housing needs. The City of Houston supports the construction of new affordable single-family homebuyer units for low income households with its annual funding allocation from the U. 5. Department of Housing and Urban Development's (HUD) HOME Investment Partnerships Program (HOME program). The HOME program was created under Title 11 of the Cranston-Gonzalez National Affordable Housing Act of 1990 with implementing regulations at 24 CFR Part 92. HOME funds became available in 1992. The HOME Program is intended to achieve four specific goals. Partnering to better serve Houston

13. Demonstration Project • Excellence in design quality; • Resilient building design; • Medium density infill; • Innovative planning and engagement approaches; • Innovative housing products and typologies; • Close partnership with industry bodies; and • Affordable housing model Partnering to better serve Houston

14. Demonstration • Indoor environmental quality • Energy efficiency • Fortified roof structures • Improved windows & doors • Strong continuous load path connection • Each house elevated above levels prone to flooding Anticipate 20 affordable fortified ENERGY STAR certified single-family homes The homes will be made available with long-term affordability to a qualified target market that is below 80% of the Area Median Income (AMI). Partnering to better serve Houston

15. Location • CHDOs will develop affordable fortified ENERGY STAR certified single-family homes within Houston’s Complete Communities. • Acres Homes • Gulfton • Near Northside • Second Ward • Third Ward Partnering to better serve Houston

16. Funding • The Developer is responsible for securing a construction loan or line of credit to cover construction development costs. • 15% Developer’s fee. • 15% Construction fee. • The City will reimburse the Developer based on the completion of three performance-based reimbursement requests: foundation, drywall finishing and project completion. Partnering to better serve Houston

17. ELIGIBLE USE OF FUNDS • New Construction • Land Acquisition • Eligible Hard and Soft Costs • Homebuyer Counseling Partnering to better serve Houston

18. Household Sizes • Size A is approximately $150,000 for 3-bedroom, 2 bathrooms with between 1,300 to 1,400 square feet single dwelling unit, with an attached garage. • Size B is approximately $180,500 for 4-bedroom, 2½ bathrooms with between 1,700 to 1,800 square feet single dwelling unit, with an attached garage. Partnering to better serve Houston

19. Project & Homebuyer Underwriting • The CHDO Developer is responsible for: marketing, collecting applications and screening buyers for eligibility; providing assistance as needed to help buyers secure first mortgage financing approvals and assist with explaining the affordability provisions against the property. • Each project and homebuyer is required prior to the project being approved. Partnering to better serve Houston

20. IV. CITY OF HOUSTON WEBSITE – Vendor Login http://purchasing.houstontx.gov/Vendor_Logon.aspx?ReturnUrl=/vendor/Vendor_VendorInfo.aspx Partnering to better serve Houston

21. VI. Questions & Answers For questions and answers to be a part of this official PROPOSAL process, they must be in writing and electronically submitted to the Strategic Procurement Division’s designated Representative, Katie Moore via email to Katie.Moore@houstontx.gov, no later than 3:00 PM, Tuesday, July 3, 2018.Responses to official questions will be posted under the solicitation file as a Letter(s) of Clarification, prior to the proposal due date. Partnering to better serve Houston

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