The New York City Housing Authority And

The New York City Department of Housing Preservation and Development

AFFORDABLE HOUSING FOR NEXTGENERATION NYCHA SITES

IN MOTT HAVEN, BRONX

REQUEST FOR PROPOSALS

RFP 63875

ADDENDUM 1 RFP issue date: June 30, 2016

Addendum 1 issue date: August 16, 2016 Revised deadline to submit questions: August 26, 2016

Bill de Blasio, Mayor

Alicia Glen, Deputy Mayor for Housing and Economic Development

Vicki Been, Commissioner Shola Olatoye, Chair & CEO Department of Housing Preservation and Development New York City Housing Authority www.nyc.gov/hpd www.nyc.gov/nycha

TABLE OF CONTENTS I. QUESTIONS AND ANSWERS

II. PRE-SUBMISSION PRESENTATIONIII. PRE-SUBMISSION ATTENDANCE LIST

I. Questions and Answers

Enclosed is a summary of questions and answers discussed at the pre-submission conferences that took place on July 19th and July 21st, 2016. Also included are answers to questions that were sent to the Next Gen NYCHA email address at NGN.MottHaven@nycha.nyc.gov. The deadline to submit questions has been extended to no later than 2:00 PM on Friday, August 26th, 2016, and must include the firm name, name of the respondent, title, address, telephone number, and e-mail address of the respondent.

1. For the Betances VI proposal, is there a preference for deeper income targeting or can developers propose more of a

mixed-income project? Is NYCHA/HPD looking for more tax credit units?

a. NYCHA/HPD does not specify income levels in the Request for Proposals (RFP). Developers should keep in mind the AMI (Area Median Income) levels of the Mott Haven neighborhood, as well as this site’s proximity to transportation and shopping opportunities available at The Hub. NYCHA/HPD are looking for proposals that have an income-mix that is financially feasible.

2. Within the RFP, NYCHA states that for Betances VI, a secondary pro-forma would not be scored; but Betances V asks for pro-formas for Project Based Vouchers (PBVs), and no PBVs. You will score both for Betances V, correct?

a. Yes, both financing scenarios will be scored during the Betances V evaluation. It is anticipated that a separate RFP to be issued specifically for PBVs will be released by HPD later this year; HPD encourages developers to respond to the forthcoming RFP and any other PBV competition in order to provide the deepest level of affordability to New York City’s senior population.

3. What does NYCHA consider as a preferable or competitive percentage of the developer fee?

a. This RFP and evaluation is an open, competitive process. Proposals will be evaluated based on the Selection Criteria as outlined in the RFP.

4. For Betances VI, we assume that the project is too small for bonds and there might not be a developer fee in a non-competitive proposal, so how would you score the developer fee split on a competitive proposal in that case?

a. Given the Uniform Land Use Review Procedure (ULURP) requirement for the Betances VI site as stated in the RFP, the Betances VI residential zoning floor area should be large enough to support a tax-exempt bond transaction.

5. For Betances V, the RFP states that the Zoning Floor Area (ZFA) available is 95,000 Square Feet (SF). It also states that the development is as-of-right. Are there any rights being transferred or combined to add up to this available FAR?

a. There are no development rights being transferred. Block 2287, Lot 26 and Block 2287, Lot 71, and the

accompanying floor area, will be merged to create a new zoning lot for the proposed development. According

to the New York City Zoning Resolution, the maximum allowable floor area for the residential portion is

approximately 78,000 SF using a 3.9 FAR (Affordable Independent Residences for Seniors Program, ZR 23-155),

and the maximum allowable floor area is approximately 95,000 SF using a 4.8 FAR (ZR 24-11).

5

6. For the Site Inspections, will the tour of the sites begin at Site 1 or 2? Or will people be available at both sites?

a. There will be NYCHA representatives at both sites from 10am to noon on Friday, 7/22. Developers are welcome to visit both sites. There is no guided tour.

7. For the garage underneath the commercial building, will it be the developer’s responsibility to demolish the garage or is that at the developer’s discretion?

a. Demolition of the garage is at the developer’s discretion. NYCHA/HPD do not require parking for the new

development.

8. Is there a preference to award these sites to separate developers? Can both sites/projects go to the same developer or must they be awarded separately?

a. There is no preference to award these sites to separate developers. Proposals will be evaluated based on the guidelines set forth in the RFP.

9. Regarding, Betances V’s competitive financing scenario and language about the Project Based Voucher Request For Proposals; can developers assume that the use of Project Based Vouchers will trigger Davis-Bacon prevailing wages? Should developers assume two different scenarios with two different hard costs depending on Davis-Bacon and non-Davis-Bacon wages?

a. The RFP requires that proposals for Site 1, Betances V, include a primary financing scenario that includes Project Based Vouchers. Use of nine or more Project Based Vouchers on a project will trigger Davis-Bacon wage requirements. The RFP requires that proposals for Site 1, Betances V, include an alternative financing scenario that does not assume Project Based Vouchers or any other competitive financing sources. Construction costs for the each financing scenario should reflect the requirements associated with proposed funding sources.

10. Does the relocation of the Betances VI commercial tenant trigger Uniform Relocation Act (URA) proceedings? And does the developer need to budget for that?

a. There is one tenant at the existing 474 Willis Avenue commercial building; the lease ends in December 2018. Once selected, NYCHA and the developer will begin the ULURP process to rezone the site. If a developer is selected in January 2017, ULURP proceedings could take until spring 2018, leaving about six months left in the commercial tenant’s lease. At that time, NYCHA will address the tenancy.

11. Is any environmental information available for the development sites, particularly for the existing structure at Betances VI?

a. No, NYCHA has not completed a Phase I Environmental for either site. For the Betances VI site, Exhibit B in the RFP includes site plans, construction plans, and schematics of the existing buildings on the zoning lot.

12. Is there a preference for partnering with a non-profit or supportive housing group for these sites?

6

a. No, there is no preference on selecting a particular type of development team. Please refer to the RFP’s Competitive Selection Criteria which includes “Development Experience, Management, and Capacity” for development team requirements and preferences.

13. You mentioned there is a preference for deeper rent-skewing, so is there also a preference for economically-mixed units (at 80% or 100% of AMI) in the Betances VI proposal?

a. NYCHA/HPD does not specify income levels in the Request for Proposals (RFP). Developers should keep in mind the AMI (Area Median Income) levels of the Mott Haven neighborhood, as well as this site’s proximity to transportation and shopping opportunities available at The Hub. NYCHA/HPD are looking for proposals that have an income-mix that is financially feasible.

14. For the Betances V/senior building proposal, is there a restriction on studios and 1-bedrooms, or is there a preference for the unit sizes?

a. HPD’s Senior Affordable Rental Apartment (SARA) Term Sheet states that projects may include studios and 1br

apartments, but does not specify a preference for either unit type. NYCHA/HPD will leave it to the developer to specify the unit mix.

15. Will the existing 5-story residential building on the Betances VI zoning lot be demolished too?

a. No, it will not be demolished.

16. The RFP states that the existing 5-story residential building on Block 2291, Lot 1 has 114 units, with 45,500 SF of residential floor area. Please clarify.

a. The RFP incorrectly lists the number of units in the existing residential building on the Betances VI Zoning Lot to be 114 units. There are 50 residential units in the existing building. The correct residential zoning floor area on the Betances VI lot is 45,500 SF, as stated in the RFP. Please disregard the original unit count listed in the RFP, and use the 50-unit count for Betances VI zoning calculations. The site plans of the existing buildings on Block 2291, Lot 1 can be found within the RFP’s Exhibit B.

17. For Betances V, is the 95,000 SF available for zoning floor area for residential use only? Or combined residential and community facility uses?

According to the New York City Zoning Resolution (ZR 24-11), an FAR of 4.8 is applicable for the merged sites to create approximately 95,000 SF of maximum allowable floor area.

18. For Betances VI, is there a preference on unit mix?

a. There is no preference; NYCHA/HPD is looking for proposals which comply with the bedroom unit distribution outlined in the HPD Term Sheets.

19. With respect to the senior site (Betances V), are social services funding considered a competitive source?

a. Social service funding is not an affordable housing financing source and should not be included in project underwriting.

II. PRE-SUBMISSION PRESENTATION

RFP

Pre-

Subm

issi

on C

onfe

renc

e

Affo

rdab

le H

ousi

ng fo

r N

extG

ener

atio

n N

YCHA

Site

s in

Mot

t Hav

en, B

ronx

RF

P 63

875

July

19th

and

21st

201

6 11

:30

AM, N

YCHA

, 250

Bro

adw

ay, 1

2th F

loor

Boa

rdro

om

1

1.

HPD

and

NYC

HA C

olla

bora

tion

2.Si

te In

form

atio

n 3.

Fina

ncin

g an

d U

nder

writ

ing

4.Th

resh

old

Crite

ria

5.Co

mpe

titiv

e Cr

iteria

6.

Impo

rtan

t Dat

es

7.Q

uest

ions

and

Ans

wer

s

Agen

da

2

HPD

and

NYC

HA C

olla

bora

tion

3

4 S

ite lo

cate

d m

idbl

ock

betw

een

Eas

t 142

nd a

nd E

ast 1

43rd

Stre

et(s

), an

d be

twee

n W

illis

and

Bro

ok A

venu

e(s)

.

Site

Info

rmat

ion

5

Site

1 –

Bet

ance

s V,

Mot

t Hav

en (T

he B

ronx

) Lo

catio

n, S

ite A

rea,

and

Dev

elop

men

t Rig

hts

for P

roje

ct

•Th

e D

evel

opm

ent S

ite 1

con

tain

s a

NYC

HA

-ow

ned

prop

erty

(for

mer

pla

ygro

und)

and

a

cont

iguo

us C

ity-o

wne

d va

cant

lot.

The

City

-ow

ned

prop

erty

will

be

disp

osed

of t

o N

YCH

A ut

ilizi

ng N

ew Y

ork

Pub

lic H

ousi

ng L

aw S

ectio

n 12

4.

•

Lots

will

be

mer

ged

to c

reat

e a

new

zon

ing

lot.

•

Zoni

ng: R

6.

•

Site

Are

a: A

ppro

xim

atel

y 20

,100

SF

•

Tota

l Zon

ing

Floo

r Are

a Av

aila

ble

for P

roje

ct: A

ppro

xim

atel

y 95

,000

SF.

•A

pplic

ants

are

exp

ecte

d to

sub

mit

an a

s-of

-rig

ht p

ropo

sal a

nd m

ust c

onfo

rm to

the

Qua

lity

Hou

sing

Pro

gram

Site

Info

rmat

ion

6

Site

1 –

Bet

ance

s V,

Mot

t Hav

en (T

he B

ronx

) Sp

ecifi

c Pr

ogra

m R

equi

rem

ents

– R

esid

entia

l •

Affo

rdab

le s

enio

r hou

sing

for h

ouse

hold

s 62

yea

rs o

r old

er.

•

Uni

ts m

ust r

emai

n in

the

rent

regu

latio

n sy

stem

for t

he d

urat

ion

of th

e pr

ojec

t or a

s re

quire

d by

law,

but

in n

o ca

se le

ss th

an th

irty

(30)

yea

rs.

•

It is

ant

icip

ated

that

a s

epar

ate

Req

uest

For

Pro

posa

ls to

be

issu

ed s

peci

fical

ly fo

r P

roje

ct B

ased

Vou

cher

s (“P

BV

”) w

ill b

e re

leas

ed b

y H

PD

late

r thi

s ye

ar; A

pplic

ants

ar

e en

cour

aged

to a

pply

to th

e fo

rthco

min

g R

FP a

nd a

ny o

ther

PB

V c

ompe

titio

n in

or

der t

o pr

ovid

e th

e de

epes

t lev

el o

f affo

rdab

ility

to N

ew Y

ork

City

's s

enio

r pop

ulat

ion.

•P

ropo

sals

for S

ite 1

, Bet

ance

s V,

mus

t inc

lude

bot

h a

prim

ary

finan

cing

sce

nario

that

in

clud

es P

BV

s (b

ut n

o ot

her C

ompe

titiv

e Fi

nanc

ing

Sou

rces

), an

d an

alte

rnat

e fin

anci

ng s

cena

rio fo

r the

Pro

posa

l tha

t doe

s no

t inc

lude

PB

Vs

(or a

ny o

ther

C

ompe

titiv

e Fi

nanc

ing

Sou

rces

). B

oth

finan

cing

sce

nario

s w

ill b

e sc

ored

dur

ing

the

eval

uatio

n.

Site

Info

rmat

ion

7

Site

1 –

Bet

ance

s V,

Mot

t Hav

en (T

he B

ronx

) Ad

ditio

nal R

equi

rem

ents

and

Pre

fere

nces

•

Pro

posa

ls s

houl

d in

clud

e th

e re

quire

d ac

cess

ory

soci

al a

nd w

elfa

re fa

cilit

ies

as p

er

Qua

lity

Hou

sing

for t

he E

lder

ly R

equi

rem

ents

, as

wel

l as

resi

dent

ser

vice

s pl

an fo

r se

nior

s. N

eith

er H

PD

nor

NYC

HA

will

pro

vide

ope

ratin

g su

bsid

y fo

r res

iden

t ser

vice

s.

•

App

lican

ts c

an a

ssum

e no

requ

irem

ent o

f par

king

spa

ces

for t

he D

evel

opm

ent S

ite.

•

Stre

et tr

ees

are

requ

ired

alon

g th

e fro

ntag

es o

f the

Dev

elop

men

t Site

.

•P

refe

renc

e w

ill b

e gi

ven

to p

ropo

sals

that

pro

vide

NYC

HA

with

a c

ompe

titiv

e pe

rcen

tage

of t

he d

evel

oper

fee

proc

eeds

. •

Pro

posa

ls fo

r one

or t

wo

build

ings

(with

fron

tage

s on

one

or b

oth

stre

ets)

are

ac

cept

able

.

Site

Info

rmat

ion

8 S

ite lo

cate

d at

the

Nor

thea

st c

orne

r of t

he in

ters

ectio

n of

Eas

t 146

th S

treet

and

Will

is A

venu

e.

Site

Info

rmat

ion

9

Site

2 -

Bet

ance

s VI

, Mot

t Hav

en (T

he B

ronx

) Lo

catio

n, S

ite A

rea,

and

Dev

elop

men

t Rig

hts

for P

roje

ct

•Lo

cate

d al

ong

Will

is A

venu

e be

twee

n E

ast 1

46th S

treet

and

Eas

t 147

th S

treet

.

•Pr

oper

ty c

onta

ins

an e

xist

ing

NYC

HA

resi

dent

ial b

uild

ing,

an

outd

oor p

layg

roun

d, a

one

-st

ory

com

mer

cial

bui

ldin

g an

d an

und

ergr

ound

par

king

gar

age.

App

lican

ts d

o no

t nee

d to

pr

ovid

e re

plac

emen

t par

king

. Th

e D

evel

oper

will

be

requ

ired

to d

emol

ish

the

exis

ting

com

mer

cial

stru

ctur

e in

ord

er to

cle

ar th

e pr

opos

ed s

ite fo

r red

evel

opm

ent.

•

Zoni

ng: R

6/C

1-4.

It is

NYC

HA’

s in

tent

ion

to p

ropo

se th

at th

is lo

t be

rezo

ned

to R

7X/C

1-4.

Ap

plic

ants

mus

t sub

mit

one

prop

osal

that

com

plie

s w

ith R

7X/C

1-4

zoni

ng.

NYC

HA

wou

ld

cons

ider

oth

er re

zoni

ng s

cena

rios

(e.g

. R8/

C1-

4 fo

r a h

eigh

t fac

tor b

uild

ing)

that

are

ac

com

pani

ed b

y th

orou

gh ju

stifi

catio

n fo

r the

pro

pose

d al

tern

ativ

e.

•

Site

Are

a: A

ppro

xim

atel

y 9,

800

SF. S

ugge

sted

new

tax

lot i

s a

porti

on o

f the

zon

ing

lot.

•

Appl

ican

ts m

ay a

ssum

e he

ight

and

set

back

wai

vers

.

•Pr

ior t

o co

nvey

ance

, the

lot w

ill b

e su

bdiv

ided

to c

reat

e a

sepa

rate

tax

lot o

n th

e sa

me

zoni

ng lo

t; de

velo

pmen

t rig

hts

nece

ssar

y to

ach

ieve

tota

l zon

ing

floor

are

a of

the

Proj

ect

will

be

spec

ified

in th

e G

roun

d Le

ase

docu

men

t.

Site

Info

rmat

ion

10

Site

2 -

Bet

ance

s VI

, Mot

t Hav

en (T

he B

ronx

) Sp

ecifi

c Pr

ogra

m R

equi

rem

ents

– R

esid

entia

l •

100%

affo

rdab

le m

ixed

-use

rent

al b

uild

ing

for f

amili

es.

•

Uni

ts m

ust r

emai

n in

the

rent

regu

latio

n sy

stem

for t

he d

urat

ion

of th

e pr

ojec

t or a

s re

quire

d by

law,

but

in n

o ca

se le

ss th

an th

irty

(30)

yea

rs.

•

Pro

posa

ls m

ust i

nclu

de a

prim

ary

finan

cing

sce

nario

that

doe

s no

t inc

lude

Com

petit

ive

Fina

ncin

g S

ourc

es. P

ropo

sals

pro

vidi

ng th

e de

epes

t affo

rdab

ility

with

the

leas

t am

ount

of s

ubsi

dy w

ill b

e ra

ted

favo

rabl

y. D

evel

oper

s m

ay s

ubm

it an

alte

rnat

ive

finan

cing

sce

nario

that

may

incl

ude

Com

petit

ive

Fina

ncin

g S

ourc

es w

ith th

eir

Pro

posa

l; ho

wev

er, t

he a

ltern

ate

scen

ario

is n

ot re

quire

d no

r will

it b

e sc

ored

dur

ing

the

eval

uatio

n.

Site

Info

rmat

ion

11

Site

2 -

Bet

ance

s VI

, Mot

t Hav

en (T

he B

ronx

) Ad

ditio

nal R

equi

rem

ents

and

Pre

fere

nces

•

Pro

posa

ls s

houl

d in

clud

e gr

ound

floo

r com

mer

cial

spa

ce.

•

App

lican

ts c

an a

ssum

e no

requ

irem

ent o

f par

king

spa

ces.

•P

refe

renc

e w

ill b

e gi

ven

to p

ropo

sals

that

pro

vide

NYC

HA

with

a c

ompe

titiv

e pe

rcen

tage

of t

he d

evel

oper

fee

proc

eeds

.

Site

Info

rmat

ion

12

1.Si

te D

ispo

sitio

n

2.De

velo

per F

ee

3.

Fina

ncin

g

4.Re

sale

, Ref

inan

cing

, and

Rec

aptu

re R

estr

ictio

ns

5.

Real

Pro

pert

y Ta

xes

Fina

ncin

g an

d U

nder

writ

ing

1. C

ompl

eten

ess o

f Pro

posa

l

2. C

ompa

rabl

e De

velo

pmen

t Exp

erie

nce

3. C

ompa

rabl

e M

anag

emen

t Exp

erie

nce

4. D

evel

opm

ent C

apac

ity a

nd C

urre

nt W

orkl

oad

5. C

onfo

rman

ce w

ith R

FP

6. A

bilit

y to

Fin

ance

7. F

easi

bilit

y of

Dev

elop

men

t Pro

posa

l

8. A

dver

se F

indi

ngs

Thre

shol

d Cr

iteria

13

1. F

inan

cial

Fea

sibi

lity

of D

evel

opm

ent P

ropo

sal (

35%

of s

core

)

2.De

velo

pmen

t Exp

erie

nce,

Man

agem

ent,

and

Capa

city

(30%

of s

core

) 3.

Qua

lity

of B

uild

ing

& U

rban

Des

ign

(25%

of s

core

)

4.Pr

ogra

m -

Hous

ing

Affo

rdab

ility

and

Com

mun

ity F

acili

ty (1

0% o

f sco

re)

Com

petit

ive

Crite

ria

14

Frid

ay, J

uly

22nd

Si

te In

spec

tions

10

AM

– 1

2 PM

At

tend

ees a

re w

elco

me

to b

ring

ca

mer

as, f

lash

light

s, h

ardh

ats,

etc

.

Mon

day,

Aug

ust 2

2nd

Last

day

to su

bmit

Que

stio

ns to

N

GN.M

ottH

aven

@N

YCHA

.nyc

.gov

by

2 P

M

Fr

iday

, Sep

tem

ber 3

0th

Subm

issi

on o

f Pro

posa

ls to

NYC

HA

by

4 P

M

Impo

rtan

t Dat

es

15

Que

stio

ns &

Ans

wer

s

16

III. PRE-SUBMISSION ATTENDANCE LIST