Request for Developer ProposalsMcKinney Housing Authority

McKinney, Texas

Merritt Homes

DUE: January 18, 20085:00 P.M., CST

(Housing Authority’s Time Stamp)

Beth BentleyMcKinney Housing Authority - OFFICE

1200 N. Tennessee St.McKinney, Texas 75069

Phone: 972-542-5641Fax: 972-562-8387

Issue Date: December 18, 2007

Redevelopment of the Merritt Homes site for senior development facilities

McKinney, Texas

REQUEST FOR PROPOSAL

Developer

REDEVELOPMENT OF MERRITT HOMES SITE

Table of Contents

I. INVITATION TO SUBMIT PROPOSALS…………..…………..………………..4

II. DEVELOPER’S ROLE…………………………………………..………………...6

III. BASIC PROPOSALS AND REQUIRED COMPLIANCE…………..………...….8

IV. SUBMISSION PROCEDURES AND REQUIREMENTS………….....................10

V. EVALUATION CRITERIA AND SELECTION PROCEDURES….....................13

VI. MCKINNEY HOUSING AUTHORITY RIGHTS AND

RESPONSIBILITIES…………………………………………………….………..15

Exhibits:

A. MERRITT HOMES

B. CERTIFICATIONS AND AFFIDAVITS

REQUEST FOR PROPOSAL

The McKinney Housing Authority (MHA) is requesting submissions of proposals from developers to assist in developing and implementing a Master Development Plan for the redevelopment of the Merritt Homes public housing community in McKinney, Texas. It is MHA’s intent to redevelop these sites either in total or in part under the HUD mixed-finance approach including the combination of public housing funds including operating subsidies and/or Section 8 Housing Choice Vouchers, low-income housing tax credits, conventional and innovative loans, developer’s equity, etc.

Proposals meeting the requirements of the RFP Documents, must be received at MHA located at 1200 N. Tennessee St., McKinney, Texas 75069, no later than 3:00 P.M. (Housing Authority’s time stamp) on January 18, 2008.

RFP Documents can be obtained from the MHA (see above address) after Monday, December 18, 2007.

Technical questions may be addressed, IN WRITING ONLY, to:

Beth BentleyMcKinney Housing Authority - OFFICE

1200 N. Tennessee StreetMcKinney, Texas 75069

Fax: 972-8387

No verbal requests for clarification or information will be accepted. All such requests must be made in writing. All such requests must be submitted to the Authority no later than 3:00 P.M. (Housing Authority’s time stamp) on January 18, 2008 (by mail, FAX, or hand delivery). All questions and clarifications will be answered in one written addendum, to be issued no later than January 18, 2008 to all Respondents who have been issued a copy of this RFP and have been duly recorded as having received a copy in the Authority’s RFP distribution log. Include your FAX number with your query submission.

I. REQUEST FOR PROPOSALS

The McKinney Housing Authority (MHA) is requesting submissions of proposals from developers to assist in developing and implementing a Master Development Plan for the redevelopment of the Merritt Homes public housing community in McKinney, Texas. It is MHA’s intent to redevelop this site either in total or in part under the HUD mixed-finance approach including the combination of public housing funds including operating subsidies and/or Section 8 Housing Choice Vouchers, low-income housing tax credits, conventional and innovative loans, developer’s equity, etc.

The selected developer or developer team must have experience with development of low-income, subsidized rental, market rate, and affordable single-family homes. Respondents are encouraged to offer creative development options for the sites.

Evaluation and selection of the Developer will be in accordance with the evaluation criteria specified in the Request for Proposal (RFP).

MHA strongly recommends that Respondents visit the site and surrounding neighborhood to ascertain the existing conditions.

Technical questions during the proposal phase may be addressed, IN WRITING ONLY, to:

Beth BentleyMcKinney Housing Authority - OFFICE

1200 N. Tennessee StreetMcKinney, Texas 75069

Fax: 972-8387

No verbal requests for clarification or information will be accepted. All such requests must be made in writing. All such requests must be submitted to the Authority no later than 3:00 P.M. (Housing Authority’s time stamp) on January 18, 2008 (by mail, Fax, or hand delivery). All questions and clarifications will be answered in one written addendum, to be issued no later than January 18, 2008 to all Respondents who have been issued a copy of this RFP and have been duly recorded as having received a copy in the Authority’s RFP distribution log. Include your FAX number with your query submission.

The successful Respondent must be familiar with, or become familiar with, the following documents and regulations (documents not provided by MHA):

1. 4 CFR Part 8, non-discrimination based on handicap

2. Section 504 of the Rehabilitation Act, as amended, and the rules and regulations there under, with regard to provision of accessible housing

3. 24 CFR Part 135, employment opportunities for Section 3 business and low-income persons

4. The HUD Procurement Handbook (7460.8)

5. 24 CFR Part 85 (HUD procurement regulations) and OMB Circular A-87 (concerning procurement and costs)

6. HUD Handbook No. 1378, Tenant Relocation and Real Property Acquisition, as amended

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7. HUD disposition approval process

8. Texas Department of Housing and Community Affairs requirements

9. Federal Home Loan Bank and Affordable Housing (FHFC) Program guidelines

10. 24 CFR 941 (Mixed-finance development regulations)

11. The Quality Housing and Work Responsibility Act of 1998

12. Low Income Housing Tax Credit program (IRS)

13. City of McKinney Development Services Codes and Regulations

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II. DEVELOPER’S ROLE

The selected Developer will be expected to perform the following services:

1. Determine a feasible final development proposal for the site. MHA encourages creative development plans for the community. Development plans must comply with basic design objectives and requirements of HUD mixed-finance development and are strongly encouraged to include design elements described by the “New Urbanism” and “Livable Communities” design objectives. Also, please note HUD guidelines related to accessibility and “visitability”.

PLEASE NOTE: MHA desires to submit at least one tax credit application during 2008. If the MHA is unsuccessful, the selected developer will be expected to work with the MHA and its development advisors to develop alternative financing and redevelopment plans.

2. Develop a financing plan for the recommended development proposal.

3. Structure and secure all necessary construction and permanent financing.

4. Provide all appropriate operating, financing, and completion guarantees to the equity investor, the MHA, and other institutions.

5. Assist MHA with any requests it may present to the U.S. Department of Housing and Urban Development (HUD) or state or local agencies for approvals and/or funding for the development, which may include, but not be limited to HOPE VI Grants, Capital Fund Program, or similar housing production funding.

6. Develop and submit an application for tax credits in the next (2008) available funding cycle in the State of Texas, and subsequent cycles, if necessary.

7. Assist in preparation of a mixed-finance proposal for submission to HUD, if necessary.

8. Assist in preparation of a HUD disposition approval as required.

9. Secure broad community and financial support for the Development Plan.

10. Assist where needed and appropriate in the creation of home-ownership development proposals.

11. Perform professional services including program planning, obtaining necessary permits, preparing project plans and specifications, organizing appropriate ownership entities, and preparing applications for funding.

12. Negotiate contracts for subcontractors and consultants, subject to the approval of the MHA and HUD. For example, such contracts may be for: geo-technical services for subsurface soil investigations, property surveying, and architectural services for real estate development plans, market studies, handicap accessibility studies, and hazardous materials testing services.

13. Develop and implement a marketing plan for the new development for rental and home ownership units.

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14. Assist in developing a working partnership with residents, MHA, and other stakeholders to promote the project and community vision.

15. Meet with officials of the City of McKinney as directed by MHA and assist in coordinating necessary approvals and implementing requirements and suggestions as needed.

16. Be responsible for providing all drawings, schematic designs, engineering, and other related services.

17. Serve as our Procurer, subject to MHA approval, of all necessary contractors and oversee all elements of construction until project completion and acceptance by the MHA.

18. Communicate regularly with MHA and its designated Housing Development Consultants, verbally or in writing as arranged or as needed, about all aspects of the project including progress and completion of tasks and milestones, scheduling, development and financial issues, important communications with HUD or local officials, and any other events or issues of significance to the project.

19. Work with MHA on the demolition of existing buildings and site clearance and preparation.

20. Conduct any necessary site remediation.

21. Provide genuine training and employment opportunities for Section 3 covered individuals.

22. Develop a construction strategy and implementation schedule.

All work shall be completed in strict accordance with the procurement policies of the McKinney Housing Authority and HUD. All work is subject to, and shall comply with, all Federal, State, and Local Government requirements, regulations, codes, guidelines, standards, and policies.

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III. BASIC PROPOSALS AND REQUIRED COMPLIANCE

Only submissions meeting the following Basic Requirements will be considered.

1. A Registered Architect, licensed in the State of Texas, must perform all architectural services.

2. Provide as part of the team a designated General Contractor who may be an affiliate entity.

3. All civil, mechanical, and electrical engineering services must be performed by a Professional Engineer registered in the State of Texas.

4. All landscape architecture services must be performed by a Landscape Architect registered in the State of Texas.

The selected Development Team must have:

5. At least ten (10) years of satisfactory experience in the project management of multi-faceted community planning and development processes involving low-income and/or subsidized rental or for-sale housing, preferably public housing, including working with residents, community groups, business owners, non-profit organizations and other stakeholders.

6. Successfully developed and constructed at least four (4) housing developments of at least 100 units.

7. Knowledge and experience in the development of rental housing and single-family for-sale housing including for entry-level and low-income homeownership, as well as market rate housing.

8. Knowledge and experience in HUD mixed-finance development, HUD disposition requests, public housing funds, and other state and federal housing programs, such as Low Income Housing Tax Credits, HOME, State of Texas housing programs, public/private programs such as the Federal Home Loan Bank Affordable Housing Program, and private financing.

9. A commitment to a strong local presence and the ability to assign a full-time locally based Project Manager to the project.

10. Experience in the local housing market and understanding of local development and market conditions.

11. Extensive experience with or in governmental organizations, housing development and construction, private market financing, tax credits, and affordable housing programs.

Compliance with the following is required: Davis-Bacon Act and other Federal Labor Standards Provisions; Title VI and other applicable provisions of the Civil Rights Act of 1964; the Department of Labor Opportunity Clause (41CFR 40-1.4); Section 109 of the Housing and Community Development Act of 1974; Executive Order 11625 (Utilization of Minority Business Enterprise); Enterprise Order 12138 (Utilization of Female Business Enterprise), which requires MHA to maximize minority and female business participation in all program activities; Section 504 of the Rehabilitation Act of 1973, and the Americans With Disabilities Act of 1990. Title VI of the Civil Rights Act of 1964 prohibits denial of benefits and discrimination under federally assisted programs on the basis of race, color, or

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national origin. Section 109 of the Community Development Act of 1974 prohibits discrimination in programs and activities.

Compliance is also required with Section 3 of the Housing and Urban Development Act of 1968, which requires that to the greatest extent feasible, opportunities for training and employment be given to lower income residents of the project and contracts be awarded to business concerns which are located in, or owned in substantial part, by persons residing in the area of the project.

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IV. SUBMISSION PROCEDURES AND REQUIREMENTS

Submit all Proposals in response to this RFP to:

Beth BentleyMcKinney Housing Authority - OFFICE

1200 N. Tennessee StreetMcKinney, Texas 75069Phone: 972-542-5641

Fax: 972-8387

NOTE: ALL ENVELOPES SHOULD BE CLEARLY MARKED:MERRITT HOMES REDEVELOPMENT

DEVELOPER PROPOSALSDUE: January 18, 2008 by 3:00 p.m. Housing Authority’s time stamp

Deadline for Submissions:

Time and date as shown on the cover of this document.

January 18, 2008 by 3:00 p.m. Housing Authority’s time stamp

A submission received after this time will be considered non-responsive.

Number of Copies:Submit one (1) ORIGINAL (with signatures) labeled Original and seven (7) DUPLICATES.

All submittals of proposals should be bound and tabbed by section as follows:

1. LETTER OF INTENT – The Letter of Intent must identify all members of the Developer entity and be signed by an Officer, Managing Member, or the General Partner of the Developer entity. The Letter of Intent should identify all interested parties, the respective relationships between all principals, owners, agents, or employees of the Developer entity; and compensation expectations of all parties. Additionally, the Letter of Intent should address the organizational structure of the Developer entity.

2. PROJECT OBJECTIVES – A description of the developer’s capability to meet the MHA’s project plan.

3. PROJECT FEASIBILITY – A financial plan inclusive of timelines and proformas will include demonstrating the effectiveness of the respondent’s strategy.

4. CONCEPT DRAWINGS – A site plan, unit mix, and elevation will be provided for the project.

5. PARTNERSHIP – Discussion of the potential partner relationships between MHA and the proposer as it relates to ownership and management.

6. CERTIFICATIONS – Submit the following certifications:a. Contractor’s Section 3 Compliance Affidavit1

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b. Business Section Compliance Affidavit1c. Estimated Project Work Force Breakdown Form and Employment Certification2

d. Estimated Project Work Force Breakdown Form and Employment Certification for Subcontractor’s Use2

e. MHA Section 3 Business Utilization Formf. Non-Collusive Affidavit1

g. WBE & MBE1

7. QUALIFICATIONS – Provide a description of the qualifications of the Respondent, including resumes and defined proposed roles and responsibilities of each member of the proposed Development Team. The resumes should include the Respondent’s roles in past projects, along with its background in the type of projects the Respondent is proposing. This should include previous examples in high-quality residential low-income family projects.

8. STATEMENT OF PLANNING AND DEVELOPMENT EXPERIENCE, INCLUDING MIXED-FINANCE PROJECTS AND PROJECTS FUNDED UNDER ANY FEDERAL OR STATE HOUSING DEVELOPMENT PROGRAM – This section should describe project location, date, concept, land uses, construction cost, and financing; and indicate the current status of each project, naming the project architect and a contact person for the project. Photos of the projects should be included. This section should identify the critical issues and explain what attempts were made in the areas of market research, financing, development, leasing. Operations, marketing, and public relations to overcome their potential impedance to the project. Respondents should indicate in detail any experience in the implementation of large-scale targeted social service programs, specifically those involving public housing developments or public housing residents.

9. STATEMENT OF FINANCIAL RESPONSIBILITY – The Respondent should demonstrate its ability to raise capital for the project. It should clarify its financial strength and investor relationships and proposed sources of capital that can move the ultimate proposal to completion. This section should include CPA audited financial statements for the past three years for the developer and development team leader and may include a plan for financing the development.

If this is a new entity or a joint entity, the submission should include financial statements of the individual entity members.

10. STATEMENT OF COMMITMENT TO USE MINORITY BUSINESS (MBE) WOMEN-OWNED BUSINESS ENTERPRISE (WBE), AND SECTION 3 BUSINESS CONCERNS – This section should include information regarding whether or not the Respondent is a Small Business Concern, a Minority Business Enterprise, a Woman-Owned Business Enterprise, or a Section 3 Business Concern. This section must include the Respondent’s plan and commitment to utilize such business as a percentage of the total contract for development and ownership of the Community.

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11. DESCRIPTION OF RESPONDENT’S INTENDED USE OF COMMUNITY GROUPS – The Respondent should demonstrate its ability to relate and interact with community groups, related organizations, and human services delivery agencies; indicate knowledge and experience in areas of social service provisions, community service economic development – especially for public housing residents – as well as the real estate development and management portion of the programs; and general knowledge of the operations and concerns of a public housing Authority. This section should describe organization and community group participation in previous developments.

12. DESCRIPTION OF RESPONDENT’S RELATIONSHIP WITH HUD – This section should indicate the level of experience and/or relationships with HUD (Area Offices and/or Central Office) in previous projects. Provide detailed information on projects funded and staff involved.

13. DESCRIPTION OF RESPONDENT’S RELATIONSHIP WITH OTHER FUNDING ORGANIZATIONS – This section indicates the level of experience of and/or relationships with local or state Housing Finance Agencies and Federal Home Loan Banks.

14. LIST OF REFERENCES – Provide a list of three (but not more than six) past or current partners in projects where the proposed development team has demonstrated its qualifications in any or all of the activities requested under this RFP. The list must include the name, title, organization, address, telephone, and fax number of the person most familiar with the work completed.

15. DESCRIPTION OF DEVELOPER TEAM – MHA requires a team organizational chart and a narrative description of the team, its responsibilities and relationships, description of how the team and project will be managed, and identification of responsible parties for this particular project. In addition, regardless of the composition of the developer team, MHA requires a single responsible point of contact that has primary and final responsibility for this project. Please provide a team organization chart.

16. DESCRIPTION OF KEY TEAM MEMBERS – The Respondent will provide a list of key team members and a description of their roles in this project. The Respondent should also provide a similar list for any team partners or sub-contractors.

17. LITIGATION – Indicate whether the respondent or any respondent team member has any current, pending or previous litigation within the last five (5) years where they are named as defendant(s), and if so, describe the circumstances.

18. REQUIRED CERTIFICATIONS – ATTACHED

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19. ACKNOWLEDGEMENT OF AMENDMENTS – The respondent shall acknowledge in its submission, receipt of any amendment(s) to this RFP.

1 Required with Bid2 Required at Contract Signing/Award

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V. EVALUATION CRITERIA AND SELECTION PROCEDURES

All submittals received will be evaluated by an Evaluation Panel convened by MHA. The Panel will review all respondents, and the most-qualified respondents that comply with the submission requirements specified above will be invited to an interview and presentation with the panel. One or more respondents will then be selected to negotiate a development agreement which the Panel will then recommend to the MHA’s full Board of Commissioners for final approval.

The Panel will evaluate respondents based upon the following criteria:

1. RESPONDENT’S RELATIVE DEVELOPMENT EXPERIENCE (25 POINTS)Level of successful planning and development experience in low-income housing and the development of homeownership units, both affordable and market rate. This category will include such factors as quality of design and cost effectiveness.

2. RESPONDENT’S RELATIVE FINANCING EXPERIENCE (25 POINTS)This category will include such activities as assemblage of financing packages and previously funded HUD/PHA development proposals.

3. RESPONDENT’S EXPERIENCE WITH COMMUNITY GROUPS (5 POINTS)

4. PHYSICAL AND FINANCIAL STATUS OF CURRENT PROJECTS AND FINANCIAL CAPACITY OF PROPOSED TEAM (15 POINTS)

5. RESPONDENT’S APPROACH TO PROJECT (25 POINTS)

6. RESPONDENT’S APPROACH TO PROJECT MANAGEMENT AND TEAM ORGANIZATION (10 POINTS)

7. MBE/WBE/DBE AND SECTION 3 GOALS (10 POINTS)Furtherance of the Authority’s commitment to involvement of individuals or firms covered by Section 3 (in order of priority, economic opportunities should be directed to residents of the Merritt Homes, residents of its neighborhood, small businesses, minority business enterprises, and women business enterprises) as indicated by:

a. Current status of Respondent as to individuals or firms covered by Section 3, small business, minority-owned business, and women’s business enterprise as applicable.

b. Previous record of employing small business, MBE, WBE, and Section 3 individuals or firms as sub consultants.

c. Proposed involvement of small businesses, MBE, WBE, and Section 3 individuals or firms as sub consultants specific to the project being proposed.

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TOTAL: 115 POINTS

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All submittals received will be evaluated by an Evaluation Panel convened by MHA. After evaluation of written proposals the Panel will select one or more of the most qualified respondents for interview and presentation. MHA will begin the negotiations with the most-qualified selected respondents.

Request for Proposals Issued December 18, 2007

Pre-Submission Site Inspection Open Schedule

Submissions Due January 18, 2008

Submission Evaluation by MHA/Panel January 21 – 25, 2008

Interviews Time Period January 28 – February 1,

2008

Negotiations Time Period February 4 – February 5,

2008

Contract Signing February 6 - 8, 2008

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VI. EVALUATION CRITERIA AND SELECTION PROCEDURES

Any amendments (i.e. corrections, additions, deadline changes, or responses to questions raised by potential respondents) will be issued via an addendum. Potential respondents will acknowledge receipt of each addenda by signing and returning the to-be-attached Certificate of Receipt of Addendum with their proposal (Potential respondents will be responsible for confirming receipt of all issued addenda). If this RFP is amended, then all terms and conditions which are not modified remain unchanged.

Each respondent will clearly designate those documents included with its proposal which it in good faith determines to be a trade secret or confidential proprietary information protected from disclosure under applicable law. To the extent permitted by local, state and federal law and consistent with MHA’s practices, MHA will attempt to reasonably maintain the confidentiality of such information. MHA will not return proposals or any information submitted in connection with a proposal, except those portions of proposals designated “trade secret” or confidential proprietary information, and only upon written request that such information be returned. MHA is subject to the Texas Open Records Act and therefore cannot guarantee that information submitted will not be subject to disclosure.

MHA expressly reserves the right at any time, in its sole discretion and for any reason to do any of the following:

1. waive or correct any immaterial defect or technical error in any response, proposal or proposal procedure, as part of the RFP or any subsequent negotiation process;

2. reject any and all proposals, including disqualifying any proposal on the basis of any real or apparent conflict of interest, (Note, upon written request to the MHA Director of Procurement, the reason for rejection of any proposal can be disclosed);

3. request that certain or all respondents to this RFP supplement or modify certain aspects of the information or proposals submitted, or submit additional information;

4. re-issue a request for proposals;5. procure any service by any other means legally permitted;6. modify the selection procedure, the scope of the proposed project or the required

responses;7. extend deadlines for accepting proposals, request amendments to proposals after

expiration deadlines, or negotiate or approve final agreements; and8. negotiate with any, all or none of the respondents of the RFP.

Any and all contracts made pursuant to this RFP are contingent upon receipt by MHA of any Local, Federal, or State funds applicable to this project.

It is understood that, in the event that the MHA and the selected Respondent are unable to negotiate a fair and reasonable price for compensation of the services described herein, MHA may negotiate with the next best-qualified firm. MHA reserves the right to sole and exclusive judgment in the determination of the proposals of the Respondents. Further, MHA reserves the right to reject any or all submissions, or to accept or select any submission as MHA in its sole and absolute discretion determines best meets its needs.

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MHA will not be responsible or liable in any manner for costs incurred by Respondents in the preparation and submission of responses to this RFP. All information, including plans, specifications and photos, submitted to MHA by Respondents in response to the RFP become the property of the MHA regardless of award of the contract.

Based on the federal requirements for units that are “mixed finance” i.e. public housing and non-public housing funds, if the developer plans to use an identity of interest contractor, the developer will have to either (a) show it won the work pursuant to a public bid or (2) seek HUD identity of interest waivers. The cost of such a waiver process if chosen, getting the independent estimates, etc., is a cost the project will need to bear, and that in all cases under mixed-finance rules, MHA will be required to seek third party cost estimate reviews for all developer contractor proposals.

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EXHIBIT A SITE INFORMATION

Present Unit Mix Present Occupancy Neighborhood Overview Present Zoning Present Acreage Site Map Potential for additional project parcels of land

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EXHIBIT B CERTIFICATIONS(Insert Section 3 Compliance, WBE & MBE Here)

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NEIGHBORHOOD OVERVIEW

Merritt Homes

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NON-COLLUSIVE AFFIDAVIT

JOB NO.____________________

STATE OF_____________________

COUNTY OF___________________

__________________, BEING FIRST DULY SWORN, DEPOSES, AND SAYS:

That he is _________________________ of __________________________________________________________, the Bidder that has submitted the attached bid: that such proposal or bid is genuine and not collusive or sham; that said bidder has not collude, conspired, connived, or agreed, directly or indirectly, with any bidder or person, to put in a sham bid or to refrain from bidding, and has not in any manner, directly or indirectly, sought by agreement or collusion, or communication or conference, with any person, to fix the bid price or affiant or of any other bidder, or to fix any overhead, profit, or cost element of said bid price, or that of any other bidder, or to secure any advantage against the MCKINNEY HOUSING AUTHORITY or any person interested in the proposed contract; and that all statements in said proposal or bid are true.

______________________________Signature of Bidder

__________________________Partner’s Signature

__________________________Partner’s Signature

Subscribed and sworn to before me this ______ day of ________________, 20___.My Commission Expires ____________________, 20______.

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PROOF OF SECTION 3 REQUIREMENTS

(SEE APPENDIX FOR ITEMS REQUIRED WITH BID)

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MHA

Section 3 Plan

(SEE APPENDIX FOR ITEMS REQUIRED WITH BID)

Beth BentleyMcKinney Housing Authority - OFFICE

1200 N. Tennessee St.McKinney, Texas 75069

Phone: 972-542-5641Fax: 972-562-8387

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MCKINNEY HOUSING AUTHORITYCONTRACTORS SECTION 3

COMPLIANCE FLOW CHART

If you have any questions or require help during this process do not hesitate to call the McKinney Housing Authority at 972-542-5641.

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Greatest Extent

Feasible

Interest in Competing for Contract Award Subject to the Requirements of

Section 3

Contracts over $200,000Subcontracts over $100,000

Contact MHA

Follow the instructions accompanying the package. Complete all Section 3 forms and submit according to the timeline.

Advertise Vacant

Positions

Advertise training and employment opportunities through the MHA, community organizations, private institutions, and ESD.

Contract Award

The party awarded the contract agrees to comply with HUD’s regulations in 24CFR Part 135, which implements Section 3 requirements.

Means to meet the numerical goals defined in 24 CFR Part 135. And insuring all Subcontractors also comply.

MCKINNEY HOUSING AUTHORITYCONTRACTORS SECTION 3

APPLICATION FLOW CHART

If you have any questions or require help during this process do not hesitate to call the McKinney Housing Authority at 972-542-5641.

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Attend Meetings

& Briefings

Desire for Training or Employment

Contact MHA

Look for advertisements posted in your Housing Development and speak with your Site Coordinator regarding ongoing or upcoming opportunities.

Review Periodical

s

Review MHA newsletters, Resident Council meeting minutes, local newspaper classified advertisements, and construction marketing reports & related publications.

Attend Section 3 meetings and briefings with HUD, MHA’s Resident Council, Contractors, in which residents or businesses are invited.

Apply Today

If interested in any training, employment or contracting opportunities respond to the advertisement by submitting the required documents.

Approved:

Table of Contents

Definitions

MHA Section 3 Purpose / Overview Page 1

Section 3 Numerical Goals Page 1

Section 3 Preference Provisions Page 2

Section 3 Compliance Page 3

Section 3 Plan Page 4

Section 3 Responsibilities Page 6MHA and ContractorsMHAContractorsSection 3 ResidentsSection 3 Business

Examples of Section 3 Opportunities Page 8

Affirmative Action Page 8

Appendixes:

Appendix 1: Contractor’s Section 3 Compliance AffidavitREQUIRED WITH BID

Appendix 2: Business Section 3 Compliance AffidavitREQUIRED WITH BID

Appendix 3: Estimated Project Work Force Breakdown Form and Employment Certification

Appendix 3a: Estimated Project Work Force Breakdown Form andAnd Employment Certification for Subcontractor’s Use

Appendix 4: MHA Section 3 Business Utilization FormAppendix 5: Section 3 Resident Affidavit

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MHA Section 3 Purpose/Overview

In accordance with the policy of Congress, and the regulations established by the United States Department of Housing and Urban Development, it is the policy and practice of the Housing Authority of the City McKinney to ensure that training, employment and other economic opportunities generated by Federal financial assistance for housing and community development programs shall, “to the greatest extent feasible” be directed toward low and very low income persons, particularly those who are recipients of government assistance for housing.

In general, the MHA shall require that our Authority, contractors and subcontractors, make their best efforts; consistent with existing Federal, State, and Local laws and regulations, to give low and very low income persons the training, employment and economic development opportunities generated by development assistance provided pursuant to Section 5 of the United States Housing Act of 1937 [42 USCS § 1437c], operating assistance provided pursuant to Section 9 of that Act [42 USCS § 1437g], and modernization grants provided pursuant to Section 14 of that Act [42 USCS § 1437l].

To ensure compliance with the above described obligations under Section 3, the MHA and its residents have developed a Section 3 Plan, that is a mandatory contract requirement for all contractors and subcontractors performing work on a Section 3 covered project(s) for which the amount of assistance exceeds $200,000; and the contract or subcontract exceeds $100,000. Bidding documents and/or proposals submitted in response to quest for bids / proposals that do not contain a complete Section 3 plan will not be considered responsive and rejected from further consideration. All responsive bidders Section 3 plans will be reviewed and evaluated for compliance with this document.

I. MHA SECTION 3 NUMERICAL GOALS

The Authority, contractors and/or subcontractors may demonstrate compliance with the “greatest extent feasible” requirement of Section 3 by meeting the numerical goals set forth herewith These goals are separated for providing training, employment and contracting opportunities to Section 3 residents and Section 3 business concerns:

A. TRAININGS AND EMPLOYMENT OF SECTION 3 RESIDENTS:

1. Beginning in conjunction with the development, thirty (30) percent of the aggregate number of new hires for a one-year period and continuing each year hereafter.

B. CONTRACTS WITH SECTION 3 BUSINESSES:

1. At least 10 percent of total dollar amounts of all Section 3 covered contracts for building trades work for maintenance, repair, modernization or development directly related to public housing, other construction and

housing rehabilitation, and other public construction awarded to Section 3 businesses;

______________________________________________________________________________Page 1

2. At least 3 percent of the total dollar amount of all other Section 3 covered contracts to Section 3 business concerns.

______________________________________________________________________________Page 2

II. SECTION 3 PREFERENCE PROVISIONSEfforts to provide direct training and employment opportunities to Section 3 residents shall adhere to the following order of priority:

Residents of the housing or developments for which the Section 3 covered assistance is expended (Category 1 Residents);

Residents of other housing developments operated and managed by the Housing Authority of the City of McKinney (Category 2 Residents);

Residents in the HUD designated Collin County Enterprise Community census tracts (Category 3 Residents);

Other Section 3 residents.

Efforts to award contracts to Section 3 businesses shall adhere to the following order of priority:

Businesses that are 51 percent or more owned by residents of the housing development or developments for which the Section 3 covered assistance is expended, or whose full-time, permanent workforce includes 30 percent of these persons as employees (Category 1 Business);

Businesses that are 51 percent or more owned by residents of other housing developments or developments managed by the McKinney Housing Authority that is expending Section 3 covered assistance, or whose full-time, permanent workforce includes 30 percent of these persons as employees (Category 2 Business);

Businesses located within the HUD designated Collin County Enterprise Community area in which Section 3 covered assistance is expended (Category 3 Business); and

Businesses that are 51 percent or more owned by Section 3 residents or whose permanent, full-time workforce includes no less than 30 percent Section 3 residents, or that subcontracts in excess of 25 percent of the total amount of subcontracts to business identified in Category 1 or Category 2 of this Section (Category 4 Business).

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III. SECTION 3 COMPLIANCE

All Section 3 contracts are subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170lu) as amended, the HUD regulations issued pursuant thereto at 24 CFR part 135, and any applicable rules and orders of HUD issued there under prior to the execution of all Section 3 contracts. This provides:

a. The work to be performed under all Section 3 contracts are subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170li).

b. The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall to the greatest extent feasible, be directed to low and very low income persons, particularly persons who are recipients of HUD assistance for housing.

c. The parties to all Section 3 contracts agree to comply with HUD’s regulations in 24 CFR 135, which implements Section 3. The parties executing contracts that fall within the Section 3 regulations are certifying that they are under no contractual or other impediment that would prevent them from complying with the regulations.

d. Parties understand that noncompliance with HUD’s regulations in 24 CFR Part 135 may result in sanctions, contract termination for default, and debarment or suspension from future HUD assisted contracts.

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IV. SECTION 3 PLAN

In order to evaluate the proposed Section 3 participation, bidding documents and/or proposals submitted in response to request for bids / proposals that meet the established financial thresholds, as described in the definitions section of this document, must include a detailed narrative which completely describes the Section 3 employment plan for which they are soliciting. The narrative must include, but is not limited to:

1. A description of any and all Section 3 businesses to be utilized, including the estimated dollar value of the contract.

2. A description of any and all residents to be utilized, including estimated wages to be paid and / or the estimated value of the contract.

3. A detailed description of the efforts to be undertaken to seek Section 3 participation.

4. A preliminary statement of work force needs (skilled, unskilled labor and trainees categories).

In addition, each plan must include the following completed documents as applicable:

MHA Contractors Section 3 Compliance Affidavit (Appendix 1) MHA Section 3 Business Affidavit (Appendix 2) MHA Estimated Project Work Force Breakdown (Appendix 3 and 3A) MHA Section 3 Business Utilization Form (Appendix 4) MHA Section 3 Resident Affidavit (Appendix 5)

V. RESPONSIBILITIES UNDER SECTION 3

MHA AND CONTRACTORS The MHA and contractors must fully cooperate with the Assistant Secretary for Fair

Housing and Equal Opportunity during: Compliance Reviews; Investigations of allegations of noncompliance made under Section 135.76; and, distribution and collection of data and information HUD may require in connection with achieving the economic objectives of Section 3.

MHA The MHA must refrain from entering contract(s) with any contractor after notification to

the PHA by HUD that the contractor has been found in violation of the Section 3 regulations.

If there is an allegation of noncompliance with Section 3 the MHA must determine the merits of the compliant, and then within 30 days from receipt of the compliant notify HUD, in writing, the determination. Appropriate documentation must support the determination.

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CONTRACTO(S) Agrees to send labor organization or representative of workers with which there is a

collective bargaining agreement or other contract or understanding, if any, a notice advising the labor organization workers’ representative of the contractor’s commitments under this Section 3 plan and shall post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice at a minimum shall:

o Set forth minimum number of job titles subject to hire;o The availability of apprenticeship and training positions;o The qualifications for each and the name and location of the person(s) taking

application for each of the positions; ando The anticipated date the work shall begin.

Agrees to include the Section 3 clause in each subcontract subject to compliance with the Section 3 regulations, and agrees to take appropriate action, as provided in applicable provision(s) of the subcontract, upon finding noncompliance or violation of the regulations. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of regulations under 24 CFR Part 135.

The contractor shall certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 CFR part 135.

Each contractor and subcontractor shall, to the greatest extent feasible, establish a good faith effort to fill all training positions with lower income area residents; and fill all employment positions with Section 3 eligible residents.

Shall attempt to recruit from the appropriate areas, the necessary number of lower income residents through local advertising media signs at the proposed site(s) and community organizations and public and private institutions operating within or serving the service area, such as the Texas Employment Commission.

The contractor or subcontractor will also send ALL job notifications to the Housing Authority of the City McKinney - OFFICE (Attention: Beth Bentley), 1200 N. Tennessee, McKinney, Texas 75069 and to the Resident Advisory Board at the same address.

Maintain a list of all lower income area residents who have applied on their own or on referral from any source, and employ such person if otherwise eligible and/or qualified and if a vacancy exists. If no vacancies exist, the eligibility and/or qualifications of the applicant shall be considered and listed for the first available opening.

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SECTION 3 RESIDENTS

Section 3 Residents have a lot to gain from the Section 3 program and as potential beneficiaries shall:

Attend Section 3 meetings and briefings with HUD, the Authority, contractors and others, in which residents are invited;

Help distribute information about meetings and about Section 3 opportunities to other residents;

Sign up for training course and employment interviews being offered;

Seeking assistance when obstacles threaten to ruin training or employment participation;

Make sure that complaints lodged against the Authority or a contractor are serious and factual. Complaints must have the following: Complainant’s name and address; description of acts or omissions by respondents that is sufficient to inform appropriate persons of the nature and date of alleged noncompliance.

A Section 3 Resident seeking employment shall certify in writing to the MHA that they are a Section 3 Resident as defined by HUD.

SECTION 3 BUSINESSES

Shall certify, in writing to the MHA, that the business is a Section 3 Business as defined by HUD.

Training and employment related opportunities:o Use upward mobility, bridge, and trainee positions to fill vacancies;o Hire Section 3 residents in part-time positions.

Business-related economic opportunities:o Form Section 3 joint ventures;o Provide financial support for affiliating with franchise development;o Purchase materials and supplies from PHA resident owned-businesses;o Provide incentives for non-Section 3 businesses so they will use methods to give

economic opportunities to low-income person.

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EXAMPLE OPPORTUNITIES FORSECTION 3 TRAINING, ECONOMIC AND BUSINESS

Other Examples:Administrative / Management: Accounting, clerical, record keeping, research, word

processing

Services: Computer, legal, manufacturing, marketing, monuments, photography, printing, supplier, transportation,

landscaping, janitorial, florists, engineering, catering, carpet consultants, architecture, appliance repair, moving / relocation, security, tree removal, courier, dispatcher.

Construction: Heating, fencing, electrical, demolition, carpentry, bricklaying, cement/masonry, drywall, iron works,

lathers, lead-based paint removal, machine operation, painting, plastering, plumbing, surveying, tile setting.

VI. AFFIRAMATIVE ACTION

An Affirmative Action Plan pursuant to a Section 3 covered contract shall:

Set forth the appropriate number and the estimated dollar value of contracts to be awarded to eligible businesses and entrepreneurs within each category over the duration of the contract.

Ensure that the appropriate businesses are notified of pending contractual opportunities either personally or through locally utilized media.

Establish a system designed to monitor the Affirmative Action Plan to ensure compliance throughout the duration of the contract.

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DEFINITIONS

Section 3 Resident:

A public housing resident or low or very low-income person (as defined in Section 3 (b)(2) of the 1937 Act, who resides in the service area which the Section 3 covered assistance is expended.

Contractor

Any entity that contracts to perform work generated by the expenditure of Section 3 covered assistance, or work in connection with a Section 3 covered project.

Section 3 Business Concern:

A business concern that is: 51 percent or more owned by Section 3 residents; or

Whose permanent, full-time employees include persons, at least 30 percent of whom are currently Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or

That provides evidence of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications set forth in paragraphs 1 or 2 in this definition of Section 3 business concern.

Section 3 Service Area:

The geographical area in which the persons benefiting from the Section 3 covered project reside. The service area shall not extend beyond the unit of local government in which the Section 3 covered assistance is expended.

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Section 3 Covered Assistance:

These projects receiving HUD Public Indian Housing Assistance:

Development assistance provided pursuant to Section 5 of the U.S. Housing Act of 1937;

Operating assistance provided pursuant to Section 9 of the 1937 Act; and

Modernization assistance provided pursuant to Section 14 of the 1937 Act

Contracts or subcontracts awarded by a recipient or contractor for work generated by the expenditure of Section 3 covered assistance, or for work arising in connection with a Section 3 covered project.

Projects partially funded by HUD for $200,000 or more are required to comply.

Not covered are contracts awarded under HUD’s procurement system and contracts for the purchase of supplies and materials.

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Appendixes

Appendix 1: Contractor’s Section 3 Compliance Affidavit REQUIRED WITH BID

Appendix 2: Business Section 3 Compliance Affidavit REQUIRED WITH BID

Appendix 3: Estimated Project Work Force Breakdown Form and Employment Certification

REQUIRED AT CONTRACT SIGNING/AWARD

Appendix 3a: Estimated Project Work Force Breakdown Form and Employment Certification for

Subcontractor’s Use REQUIRED AT CONTRACT SIGNING/AWARD

Appendix 4: MHA Section 3 Business Utilization Form

Appendix 5: Section 3 Resident Affidavit

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Appendix 1:

State of:________________________City of:___________________________________

CONTRACTOR’S SECTION 3 COMPLIANCE AFFIDAVIT

The undersigned makes this affidavit with full knowledge that its contents will be used in the expenditure of funds provided by the United States Government. Under penalty of perjury, I herby state:

I am the ______________________of_____________________________the bidder that has submitted the attached bid; and my company understands and adheres to Section 3 of the Housing and Urban Development (HUD) Act of 1968, as amended, 12 U.S.C. 170lu that requires, to the greatest extent feasible, that a “good faith effort” is given to identifying small businesses located within the boundaries of the Section 3 service area, making them aware of contracting opportunities, encouraging their participation and actually awarding contracts to Section 3 business concerns.

An attempt will be made to undertake outreach activities intended to encourage participation by Section 3 residents in training and employment opportunities, to include but not be limited to:

Advertising in local media; Distributing flyers on training and job opportunities to public housing sites and posting

flyers in community space; Informing labor organizations and private job training agencies of potential jobs and

contract opportunities; Participation in job information meetings and workshops to help Section 3 residents

complete applications and learn interviewing techniques.

Affiant’s Signature:

Company Name:

Address:

Telephone: ( ) Date:

Subscribed and sworn to under oath before me on this _______day of ___________, 200___.My commission expires:________________

Notary:

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Appendix 2:State of:________________________City of:___________________________________

BUSINESS SECTION 3 COMPLIANCE AFFIDAVITThe undersigned makes this affidavit with full knowledge that its contents will be used in the expenditure of funds provided by the United States Government. Under penalty of perjury, I herby state:

1. I am the ___________________of________________________the bidder that has submitted the attached bid; and whose business concern is (check only one)

( ) 51% or more is owned by Section 3 residents; or

( ) Whose permanent, full-time employees include persons, at least 30% of whom are currently Section 3 residents, or within three (3) years of the date of first employment with the business concern were Section 3 residents; or

( ) Provides subcontracts in excess of 25 percent of the total award of all subcontracts to be awarded to business concern that meet the qualifications set forth in the definition section of business concerns.

( ) None of the above.

2. And for Project No.__________I/We claim preference in the category indicated below (check only one):

( ) Business that are 51 percent or more owned by residents of the housing development or developments for which the Section 3 covered assistance is expended, or whose, full-time, permanent workforce includes 30 percent of these persons as employees (Category 1 Business);

( ) Businesses that are 51 percent or more owned by residents of other housing developments or developments managed by the McKinney Housing Authority that is expending Section 3 covered assistance, or whose full-time, permanent workforce includes 30 percent of these persons as employees (Category 2 Business);

( ) Business located within the HUD designated Collin County Enterprise Community area in which Section 3 covered assistance is expended (Category 3 Business); and

( ) Businesses that are 51 percent or more owned by Section 3 residents or whose permanent, full-time workforce includes no less than 30 percent Section 3 Residents, or that subcontracts in excess of 25 percent of the total amount of subcontracts to businesses identified in Category 1 or Category 2 of this section. (Category 4 Business)

( ) No preference claimed.

Affiant’s Signature:_________________________ Affiant’s Title:_______________________________

Company Name:___________________________ Address:____________________________________

Telephone:________________________________ Date:______________________________________

Subscribed and sworn to under oath before me this _________day of ______________________2000__. My commission expires:_____________________________

Notary:_______________________________________

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Appendix 3

ESTIMATED PROJECT WORK FORCE BREAKDOWN

Job Category Total Estimated Positions Needed

for Project

No. Positions Occupied by Permanent Employees

Number of Positions Not

Occupied

Number of Positions to be

Filled w/Section 3 Residents

Officer/Supervisor

Professionals

Technical

Hsg Sales/Rent

Office/Clerical

Service Workers

Others

TRADE:

Journeyman

Helpers

Apprentices

Trainees

Others

TRADE:

Journeyman

Helpers

Apprentices

Others

Total

EMPLOYMENT CERTIFICATIONThe Company hereby certifies that the above table represents the appropriate number of employees’ positions required in the execution of Project No._______and also represents the number of Section 3 service area residents that the company proposed to employ.

The Company certifies that it will make a good faith effort to employ the number of lower income employees stated utilizing such community-based organizations and service agencies as:__________________________________________________________________________________

Company Name: ____________________________________________________

By: ____________________________________________________

Title: _____________________________________ Date:_____________________________________

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Appendix 3a (For Subcontractor’s Use)

ESTIMATED PROJECT WORK FORCE BREAKDOWN

Job Category Total Estimated Positions Needed

for Project

No. Positions Occupied by Permanent Employees

Number of Positions Not

Occupied

Number of Positions to be

Filled w/Section 3 Residents

Officer/Supervisor

Professionals

Technical

Hsg Sales/Rent

Office/Clerical

Service Workers

Others

TRADE:

Journeyman

Helpers

Apprentices

Trainees

Others

TRADE:

Journeyman

Helpers

Apprentices

Others

Total

EMPLOYMENT CERTIFICATIONThe Company hereby certifies that the above table represents the appropriate number of employees’ positions required in the execution of Project No._______and also represents the number of Section 3 service area residents that the company proposed to employ.

The Company certifies that it will make a good faith effort to employ the number of lower income employees stated utilizing such community-based organizations and service agencies as:__________________________________________________________________________________

Company Name: ____________________________________________________

By: ____________________________________________________

Title: _____________________________________ Date:_____________________________________

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Appendix 4

MHA SECTION 3 BUSINESS UTILIZATION FORM

The Company shall utilize business concerns located in the Section 3 service area for Project No. __________ in contracting for work to be performed in connection with the completion of the contract. To this end, the Company shall require the services of companies as follows:

Project No.:________ Total Dollar Amount of Contract:____________________________ Date:_____________________________

Name of Prime Contractor:_____________________________________ Address:_________________________________________

Title____________________________________________ Federal ID No.:_______________________________________________

Name of Subcontractor Sec 3 Bus.*

Address & Phone

Trade/Service/Supply Contract Amt Award Date Competitive of Negotiated Bid

Federal ID No.

* Check if a Section 3 Business Concern

Total Dollar Amount Awarded to Section 3 Businesses: $_________________________________

____________________________________________________________________________________________________________

Total Dollar Amount of all Subcontracts: $_________________________________

(Note: Include “Appendix 3a for each subcontractor)

____________________________________________________________________________________________________________

Appendix 5:

State of:_______________________________ City of:_________________________________

SECTION 3 RESIDENT AFFIDAVIT

The undersigned makes this affidavit with full knowledge that its contents will be used in the expenditure of funds provided by the United States Government. Under penalty of perjury, I hereby state:

1. I am a resident of the City of McKinney located in Collin County and have been since:___________________________.

2. My current address is:_______________________________________________________

3. My source of income is:______________________________________________________

4. My monthly income is $_____________, and my yearly income is $__________________

5. My social security number is:_________________________________________________

Affiant’s Signature:_______________________________________________________________

Telephone: (_____)__________________________________ Date:________________________

Subscribed and sworn to under oath before me this__________day of _______________, 200___.

My commission expires:_________________Notary:___________________________________

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Last two pages were project information and a HUD 52158 form

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