Request for Proposals for Section 8 RAD Project-Based Voucher (PBV) Rental Assistance
REQUEST FOR PROPOSALS
for Section 8 RAD Project-Based Voucher (PBV) Rental Assistance
Issue Date: March 31, 2024
*Proposals Due: April 30, 2025, by 4:00 PM local time*
Spartanburg Housing
Section 8 RAD Project-Based Voucher Rental Assistance
Request for Proposals
Spartanburg Housing (SH) announces the availability of up to 60 Rental Assistance Demonstration (RAD) Section 8 Project-Based Vouchers (PBV) (14 two-BR, 28 three-BR, 18 four-BR). The goal of this request for PBV proposals is to award some or all of these vouchers to qualifying rental developments to expand the provision of affordable housing opportunities for people with low incomes in Spartanburg and Spartanburg County.
SH reserves the right to cancel this RFP in writing or postpone the date and time for submitting proposals at any time before the proposal due date. No owner/applicant submitting a proposal shall have a right to make a claim against SH if the SH accepts a proposal or does not accept any or all proposals or does not award all of the PBVs that may be available under this RFP. By issuing this RFP, the SH does not promise or commit to accept any specific proposal and expressly reserves the right to reject any or all proposals, to waive any or all immaterial in-formalities or irregularities in the proposals received, to modify RFP contents, and to obtain new proposals.
PBV Program Overview
The PBV program is a HUD-funded Section 8 housing subsidy program that ties the federal rental assistance directly to a specific unit rather than the traditional tenant-based Housing Choice Voucher, which is tied to a participant. The Rental Assistance Demonstration (RAD) program converts public housing assistance to project-based vouchers. SH has up to 60 units of RAD converted project-based vouchers to be awarded to qualifying developments. No existing residents are associated with the vouchers or any right of return for formerly assisted residents.
Residents of the project-based voucher units must meet income and other eligibility criteria established by the U.S. Department of Housing and Urban Development for the HCV Program and SH's HCV Administrative Plan. Eligible residents will receive rental assistance by agreeing to live in existing, newly constructed, or rehabilitated PBV units. They will continue to receive assistance as long as they maintain their program eligibility and reside in the specific project-based dwelling units. PBV participants must have incomes that do not exceed 50% of the area's median income (AMI). After living in a PBV unit for 12 months, a participant is eligible for a tenant-based voucher to move to a unit of their choice on the open rental market if SH has a tenant-based voucher available. The PBV assistance remains with the original unit. Almost any newly constructed or existing structure may be used for PBV. Owners must be willing to enter into a Housing Assistance Payments (HAP) Contract with the SH for not less than fifteen years and no more than twenty years.
The owner must obtain financing independently for the construction or rehabilitation of units.
PBV and RAD Program Requirements
PBV Program Rules and Regulations. The HUD program rules and regulations governing the Section 8 RAD Project-Based Voucher program are available online at: HUD RAD PBV Program. Proposers are encouraged to review the SH's Housing Choice Voucher Administrative Plan for additional information on PBV policy and program requirements. PBV program policies can be found in Chapter 17 of the Plan.
Eligibility and Occupancy. Families occupying PBV-assisted units must be eligible to participate in the federal Section 8 HCV Program and have incomes at or below 50% of the area's median income. Residents occupying PBV units will pay 30% of their adjusted income toward rent and utilities. The SH will pay the remainder directly to the owner through a Housing Assistance Payment.
New residents or vacancies in RAD PBV-assisted units must be filled from the SH site-based waiting list.
Owners must screen applicant families as they would any other non-assisted tenant. The SH does not perform any tenant screening for owners.
HAP Contracts and HQS Inspection. The owner of an eligible unit will be required to enter into a HUD-prescribed RAD Housing Assistance Payments (HAP) contract with the SH. The HAP contract will be between 15 years and 20 years. Before entering into a HAP contract for a proposed PBV unit, the unit must be inspected and meet HUD's Housing Quality Standards (HQS) regulations. The SH cannot enter into a HAP contract covering a unit until the unit fully complies with HQS. [24 C.F.R. § 983.103 (inspecting units)] A copy of the standard RAD Section 8 project-based HAP contract is available upon request.
Required Lease Provisions. Owners will be required to use leases that incorporate a HUD-required RAD tenancy addendum containing HUD-required lease provisions and otherwise must comply with HUD Section 8 program regulations. [24 C.F.R. § 983.256(b) (form of lease)] A copy of the HUD-required lease addendum is available upon request.
Unit Rent Limits. The contract rent to be paid to the owner for each unit size (2, 3 and 4BR units) is set by HUD. Current rents can be found as Exhibit A to this RFP.
Families' Right to Move. Families assisted under the RAD PBV program have the right to terminate the assisted lease after the first year of occupancy and move with a tenant-based HCV if one is available. Families moving prior to the first year will move unassisted.
RAD Ownership and Control. Except where permitted to facilitate the use of tax credits, during the initial term and all renewal terms of the HAP Contract, HUD will require ownership or control of the Covered Project by a public or non-profit entity. HUD may also allow ownership of the project to be transferred to a tax credit entity controlled by a for-profit entity to facilitate the use of tax credits for the Covered Project, but only if HUD determines that the PHA or a non-profit entity preserves an interest in the property.
Public or non-profit ownership or control, or preservation of an interest by a PHA or non-profit in a property owned by a tax-credit entity controlled by a for-profit entity, may be satisfied if the PHA, public entity or non-profit entity (or entities), directly or through a wholly owned affiliate: (1) holds a fee simple interest in the real property of the Covered Project; (2) is the lessor under a ground lease with the Project Owner; (3) has the direct or indirect legal authority (via contract, partnership share or agreement of an equity partnership, voting rights, or otherwise) to direct the financial and legal interests of the Project Owner with respect to the RAD units; (4) owns 51 percent or more of the general partner interests in a limited partnership or 51 percent or more of the managing member interests in a limited liability company with all powers of a general partner or managing member, as applicable; (5) owns a lesser percentage of the general partner or managing member interests and holds certain control rights as approved by HUD; (6) owns 51 percent or more of all ownership interests in a limited partnership or limited liability company and holds certain control rights as approved by HUD; or (7) demonstrates other ownership and control arrangements approved by HUD.
Control rights referenced in the examples above include control over the leasing of the Covered Project, such as exclusively maintaining and administering the waiting list for the Covered Project, including performing eligibility determinations, and consent rights over certain acts of the Project Owner (including, for example, disposition of the Covered Project, changing the number of affordable units or the affordability targeting, setting utility allowances or any unregulated tenant fees for the affordable units, selecting the management agent, setting the operating budget and making withdrawals from the reserves). Control may be established through the terms of the Project Owner's governing documents or through a Control Agreement, provided that in either case, an amendment of the terms of control requires consent from HUD. Ownership and control structures are subject to HUD review to ensure compliance with statutory requirements.
Environmental Review. Under Federal environmental review requirements, proposed RAD PBV projects are subject to environmental review under Part 58, and environmental documents are required to be submitted no later than the applicant's Financing Plan.
Fair Housing. Transactions will be subject to the RAD Fair Housing, Civil Rights, and Relocation Notice (Notice H 2016-17, PIH 2016-17 (HA)).
Site Selection and Neighborhood Standards. Where a PHA is planning to convert assistance under RAD, the PHA must comply with all applicable site selection requirements as set forth in this Notice and following any additional applicable guidance provided by HUD. Site selection requirements set forth at 24 CFR § 983.57 shall apply to RAD conversions to PBV assistance. Site selection must be consistent with the requirements of the Fair Housing Act, Title VI of the Civil Rights Act of 1964 including implementing regulations at 24 CFR § 1.4(b)(3), Section 504 of the Rehabilitation Act of 1973 including implementing regulations at 24 CFR § 8.4(b)(5), and the Americans with Disabilities Act. See the RAD Fair Housing, Civil Rights, and Relocation Notice (Notice H 2016-17 PIH 2016-17 (HA)) for a full description of Site and Neighborhood Standards requirements in RAD and the situations under which HUD will perform an up-front review.
Davis-Bacon Prevailing Wages. The Davis-Bacon prevailing wage requirements (prevailing wages, the Contract Work Hours and Safety Standards Act, and implementing regulations, rules, and requirements) apply to all Work, including any new construction, that is identified in the Financing Plan and RCC to the extent that such Work qualifies as development.
Financing Plan. SH will be required to submit a Financing Plan to HUD that describes the transaction, including ownership information, environmental review and approval, RAD CNA e-tool, and financing documents. During the Financing Plan review, HUD will perform a Subsidy Layering Review if the state HFA has not performed one.
Selection Criteria for Project-Based Voucher (PBV) Proposals
Ineligible Housing Types. The following types of housing are not eligible for RAD PBV assistance: owner-occupied units; units currently occupied by a family ineligible for participation in the PBV program; shared housing; units on the grounds of a penal, reformatory, medical, mental, or similar public or private institution; nursing homes or facilities providing continuous psychiatric, medical, nursing services, board and care, or intermediate care; units owned or con-trolled by an educational institution or its affiliate and are designated for occupancy by students of the institution; manufactured homes; cooperative housing; transitional housing; public housing dwelling units or units (or occupants) subsidized with any tenant-based rental assistance; and units with any other duplicative federal, state, or local housing subsidy. [24 C.F.R. §§ 983.53 and 983.54 (prohibition of assistance for ineligible units; prohibition of assistance for units in subsidized housing)]
SH Service Area. SH administers PBVs in the City of Spartanburg and Spartanburg County.
Application Procedures for the Project-Based Voucher (PBV) Program
The SH is accepting competitive and non-competitive responses on a rolling basis and invites interested owners to apply for PBVs by applying no later than 4:00 p.m. (CST) on April 30, 2025. Competitive submissions must meet the Evaluation Criteria listed on the following page. Non-competitive submissions must prove the project requesting PBVs was previously selected based on a competition. This may include selection of a proposal for housing assisted under a federal, state, or local government housing assistance program that was subject to a competition following the requirements of the applicable program, com-munity development program, or supportive services program that requires competitive selection of proposals (e.g., HOME, and units for which competitively awarded LIHTCs have been provided), where the proposal has been selected following such program's competitive selection requirements within three years of the PBV proposal selection date, and the earlier competitive selection proposal did not involve any consideration that the project would receive PBV assistance. Projects attempting to meet the non-competitive selection criteria must still meet PBV and RAD Program Requirements.
Applications must be emailed in PDF format. Proposals that are incomplete or received after the submission deadline will not be considered or reviewed. Paper proposals will not be accepted. Projects seeking a competitive award must receive a minimum score of 75 points using the Evaluation Criteria below to be considered.
Applications for SH's PBV program and all questions regarding this RFP must be directed to Joseph Jackson jjackson@spartanburghousing.org
Questions must be submitted via e-mail. Questions must be received by the close of business on April 10, 2025.
Applications must be submitted in pdf format prior to the application submission deadline:
jjackson@spartanburghousing.org
Subject: RAD PBV Proposal-Project Name
PBV proposals seeking competitive awards will be reviewed and ranked in accordance with the following selection criteria. Projects must have a minimum of 75 points to be considered. Projects having received a prior competitive award will be eligible to be considered for award under the non-competitive selection criteria as previously described.
| Total Points | 100 |
| Evaluation Criteria | Points |
|
The proposed housing serves to preserve existing affordable housing or creates new affordable housing opportunities. 30 Points Maximum |
30 Points if the project includes constructing units to preserve or replace existing affordable housing or creating new affordable housing opportunities through new construction. |
|
The proposed housing creates new housing opportunities and encourages economic integration in housing development. 10 Points Maximum |
5 Points if 25% or more of the units in the project will not utilize PBV; or 0 Points if less than 25% of the units will not be supported by PBV. 5 Points if the Project is part of a larger revitalization plan |
|
The proposal submitted demonstrates a thorough, in-depth, well-planned project meeting all federal requirements and other eligibility criteria. 20 Points Maximum |
5 Points if applicant currently has site control; and 5 Points if the site is currently properly zoned; and Up to 5 points based upon a qualitative analysis of how well the project is planned and meets all federal, state, and other eligibility criteria. |
|
Up to 5 points based upon a qualitative analysis of how well the project meets HUD's goals to deconcentrate poverty and minorities. If the proposal does not meet deconcentration goals, it is rejected unless the proposal is for preserving an existing subsidy to help maintain affordability. |
|
|
The applicant's qualifications are appropriate for the project under consideration and firm financial commitments are adequately documented. 20 Points Maximum |
Up to 10 points based upon a qualitative analysis of applicant's qualifications, including a demonstrated track record for successfully leasing up and managing projects of similar scale, complexity, and resident population 10 Points if all financing is firmly committed, as evidenced by commitment letters; or 8 Points if some funding is firmly committed, the financing plan appears to be feasible, and there is compelling evidence that the remaining funding will most likely be committed within one year; or 5 Points if some funding is firmly committed and the financing plan appears feasible, but funding will most likely not be fully committed in one year. If funding is applied for, please provide evidence; or 3 Points if no funding is firmly committed but financing plan appears feasible; or 0 Points if no financing is firmly committed and the financing plan is not feasible.
|
|
Rental subsidy is necessary for the viability of the project. The site is marketable and viable for a minimum of 15 years. 20 Points Maximum |
Up to 10 Points based upon a quantitative analysis of the operating pro-forma; and Up to 10 points based upon a quantitative and qualitative analysis of the information provided regarding viability and marketability of the proposed units. |
Based on the evaluation, the SH may:
• Request further information from proposer;
• Determine the proposal is non-responsive and/or incomplete; or
• Reject the proposal.
Award Procedures for the Project-Based Voucher (PBV) Program
PBV Award Process
Applications will be reviewed and scored within 4 weeks of submittal. The highest scoring application (s) for up to 60 PBVs will proceed as follows:
• New Construction. New construction projects will be provided with a conditional Letter of Intent that conditionally commits Project-Based Vouchers, contingent on a project receiving the necessary funding within one year of PBV award to become financially feasible.
If a project does not receive the necessary funding within one year of being awarded PBVs, it will not be awarded PBVs, and the project owner must reapply for them at a later date when they are again offered.
• Existing Housing. Existing housing applications will be formally awarded PBVs through formal Board action. The action will be taken when other federal requirements are met (e.g., environmental review) but likely within 60-90 days of project selection.
Exhibit A
Rents will be capped at the lesser of 110% FMR and rent reasonableness. RAD rents are subject to an annual OCAF, subject to HUD appropriations.
Cammie Clagett SC003000060 RAD PBV Conversion Awaiting Transfer (CAT) Units
| Bedroom Sizes | CAT Units | 2025 Contract Rent |
| 2 | 14 | $869 |
| 3 | 28 | $1,094 |
| 4 | 18 | $1,125 |
