LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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AWARD OF CONTRACT AGREEMENT FOR RFP NO. 22-051 FOR COMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS (CDBG-CV) HOMELESS HOUSING ACQUISITION/REHABILIATION PROJECT
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RECOMMENDATION:
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That City Council award the contract agreement for RFP No. 22-051 for Community Development Block Grant-Coronavirus (CDBG-CV) Homeless Housing Acquisition/Rehabilitation Project to Re-Entry Alliance Pensacola, Inc. in the maximum amount of $370,501. Further, that City Council authorize the Mayor to take the actions necessary to execute and administer the contract agreement consistent with the proposal, contracting documents, and the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
On June 17, 2021, the City Council approved an Amendment to its 2019 HUD CDBG Annual Action Plan for Community Development Block Grant funds in order to receive $463,126 in Community Development Block Grant-Coronavirus (CDBG-CV) funding from HUD under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Funds received from this special one-time allocation must be used to prevent, prepare for, and/or respond to COVID-19 as well as meet a CDBG eligible activity by serving low- and moderate-income households. As part of this Amendment, the Council approved an allocation of $370,501 specifically to fund acquisition and/or rehabilitation of a facility to address the needs of the homeless community to prevent, prepare for and respond to COVID-19. 80% of the CDBG-CV funding must be expended by January 2024.
On August 26, 2022, the City issued a Request for Proposals (RFP) for a Homeless Housing Acquisition/Rehabilitation Project under RFP 22-051. The minimum threshold requirements for this acquisition and/or rehabilitation funding proposal were: project located within the City limits; project not in a special flood hazard area; applicant a not for profit; project serves low/moderate income households; project demonstrates COVID-19 response; and project provides new or expanded units for homeless households. New housing construction is not permitted under CDBG, and no personnel or operating expenses were eligible under this RFP.
The RFP timeline follows:
• August 26, 2022: RFP 22-051 issued by Purchasing with submission deadline of September 26, 2022. Proposal sent to 100 vendors, including all City ARPA funding recipients as well as other agencies that serve homeless populations.
• September 6, 2022: Non-mandatory pre-bid conference was held with 11 attendees.
• September 12, 2022: Addendum #1 issued to provide responses to questions raised at the pre-bid conference and extend submission deadline to October 3.
• September 29, 2022: Addendum #2 issued to extend submission deadline to October 10.
The City received two proposals by the stated deadline, but one agency withdrew their proposal from consideration after the deadline. City staff reviewed the remaining proposal from Re-Entry Alliance Pensacola, Inc. (REAP) to determine that the proposal was responsive.
Under this Agreement, REAP will utilize the CDBG-CV funds to acquire the property located at 1551 W. Blount Street as well as fund soft costs related to rehabilitation (utility reconnections, permitting, professional services, etc.), which currently holds a multi-family development with 12 single room occupancy units on the site. The appraisal of the property ordered by the City Housing Department provided an as-is appraisal of the site at $410,000. Acquisition costs will include payoff of the $325,146 mortgage plus closing costs on the property; no funds will be remitted to the current property owner as part of the sales transaction.
After acquisition, repairs will be completed on the development to make the property habitable for homeless low/moderate income individuals. Rehabilitation funding will be provided by REAP to necessitate repairs. At rehabilitation completion, all 12 units will be leased to homeless individuals at or below 80% area median income (AMI), with 6 of the units specifically targeted to individuals with incomes at or below 50% AMI. In accordance with CDBG regulations, the development must be used for this CDBG eligible use for a minimum of five years, which will be enforced by a City CDBG mortgage and note against the property. Monthly reporting will be required by the Agency until 100% project lease-up, with annual reporting for the 5 year compliance period. City staff will review compliance with income, rents, targeted clientele, and occupancy standards during this time.
PRIOR ACTION:
June 17, 2021 - City Council approved an Amendment to the FY 2019-2020 HUD CDBG Annual Action Plan to receive $463,126 in CDBG-CV funds, with a $370,501 allocation for Property Acquisition and/or Rehabilitation of a Homeless Facility
FUNDING:
Budget: $370,501
Actual: $370,501
FINANCIAL IMPACT:
No City general funds are required. Funds are available from CDBG-CV funding.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
1/19/2023
STAFF CONTACT:
Kerrith Fiddler, City Administrator
David Forte, Deputy City Administrator
Marcie Whitaker - Housing Director
ATTACHMENTS:
1) Agreement between City of Pensacola and Re-Entry Alliance Pensacola, Inc.
2) Property Location Map 1551 W. Blount Street
3) Appraisal Report Excerpt 1551 W. Blount Street
4) RFP 22-051 CDBG-CV Homeless Acq-Rehab Vendor Reference List
PRESENTATION: No end