SUMMARY OF PROJECTS

The Lanterman Act, as interpreted by the California Supreme Court in ARC-CA vs. DDS, determined that a primary function of regional centers is to “prevent or minimize the institutionalization of developmentally disabled persons”.   Inland Regional Center (IRC), will use Community Placement Plan (CPP) funds to acquire and develop permanent, accessible homes in the community, owned by Housing Developer Organization (HDO), for the use of individuals at risk of, or currently residing in, state developmental centers.  This home will serve consumers who are transitioning from Porterville Developmental Center - Secure Treatment Program (PDC-STP) or in some circumstances may serve individuals who are in jail and are being diverted from PDC.  Inland Regional Center is seeking proposals for the acquisition and renovation of one  (1) single family home, which will be available with long-term leases for residential service providers selected and vendored by IRC. 

The applicant may apply for grants for both the acquisition and renovation in a single proposal.  Grant funds to acquire the home will be for a total of one (1 property   Grant funding for renovating the home is available for modifications required to meet the support needs of the individuals referred, and to meet the licensing standards that will apply to the residents referred.  To ensure that homes developed using CPP funds are always available for use by individuals served by IRC, real estate deed restriction or restrictive covenants are required for each property purchased with these funds by the HDO.  These deed restrictions or restrictive covenants must place specific limitations on the use of the property.  Each property will be developed in accordance with the Fiscal Year 2017-2018 approved  Community Placement Plan Housing Guidelines issued by the State of California, Department of Developmental Services.  (Attachment A)

Interested parties are invited to submit a proposal in accordance with the specifications contained in this Request for Proposal (RFP) to acquire and renovate one single family property for long–term lease to a service provider supporting individuals with developmental disabilities.  Applicants will also be responsible for the long-term management of the property.  The awardee(s) will acquire and renovate one single family home property to be purchased and renovated to IRC specifications and will be owned and maintained by the HDO for restricted use as housing for individuals served by IRC. 

Deed restrictions must specify the property will be held and available for services to persons referred by IRC into perpetuity. This is per the Fiscal Year 2017-2018  approved Housing Guidelines issued by the State of California, Department of Developmental Services (DDS).  HDO may hold the property as a non–profit corporation, limited partnership, or a limited liability corporation.    Renovation of the property must be supervised by and is the responsibility of the HDO.  Renovation plans must be developed for the HDO by a licensed architect and implemented by a licensed, bonded contractor, and the plans approved by IRC prior to application for construction permits.  The property will be leased to a residential service provider who will provide care and supervision to the residents.  The selected residential service provider as well as regional center staff will be available to the HDO/architect/building contractor for development team meetings and technical assistance regarding the needs of the individuals referred as well as the requirements of Community Care Licensing. Property must be convertible to meet the standards for licensing by the Department of Social Services of the State of California, Community Care Licensing Division.  Property ownership and management will be separate and distinct from the provision of services and supports.

DEVELOPMENT (SN-Project 1 ): Enhanced Behavioral Support Home

Geographic Location:      San Bernardino County

Acquisition Funds:           Up to $500,000                                       

Renovation Funds:           Up to $500,000

Physical Plant for Development:

• Secured Perimeter and Delayed Egress system, in compliance with Health and Safety Code Section 1531.1
• Minimum of four (4) bedrooms, 2 with ambulatory and 2 with non-ambulatory access
• ADA compliant exits and non-ambulatory clearance 
• Ample parking (off-street, preferred) for staff and visitors

APPLICANT ELIGIBILITY

The Housing Developer Organization’s primary mission is to develop and manage accessible homes for the needs of individual with developmental disabilities.  For the purposes of this project, the applicant may be a registered Non-Profit Organization, limited liability company, or limited partnership that will own the properties as a managing general partner who receives and retains an Organizational Clearance Certificate for the project(s) from the California Board of Equalization in order to be exempt from property taxes.  Only applicants who have acquired, constructed, or renovated property for the use of special needs populations for a minimum of two years, or have team members with at least 4 years of relevant experience, will be considered.  Applicants must possess qualifications as specified in this RFP. 

APPLICANT INELIGIBILITY

The following agencies or individuals are not eligible for this HDO development award:

1. The State of California, its officers or its employees;
2. A regional center, its employees, and their immediate family members;
3. Area Board members, their employees or their immediate family members;
4. Any HDO with a conflict of interest in either board members or employees

I affirm that the information presented in this application and proposal is true and that this proposal was developed and authored by the person indicated. I understand that any falsificationof information or failure to disclose any history of deficiencies or abuse will be cause for immediate disqualification. I further understand that, in the event that my proposal is selected for development, the proposal itself is not approved conclusively. My signature below authorizes IRC to verify references and bank statements.

Attach Narrative Proposal which includes the following:

I.       APPLICANT INFORMATION

a.  The contact information (name, address, e-mail address and telephone number) of the proposed applicant and whether applying as a non-profit corporation, a limited partnership, or a limited liability corporation.

b.  State the name of the author of the proposal. List any parties who participated in writing all or part of the proposal. Any proposal written for an applicant by a consultant or professional grant writer will demonstrate a commitment by the writer to provide ongoing technical assistance during the project implementation phase.

c.   Describe or provide materials that clarify the HDO’s mission and development and management experience of the HDO, any developer retained by the HDO and other development team members.

d. Development Success

i.State the background of either your organization or yourself in providing the type of projects/services outlined in the RFP

ii.Describe similar projects/services with which the organization has been successful

e.  At minimum, the proposal should include names of partners, staff or consultants, if known, who will be involved in the implementation of the project if awarded; resumes; a summary of past projects; and a narrative of proposed property ownership from acquisition to conversion to permanent financing.

f.   List of references and/or letters of reference relevant to experience and other qualifications required to complete this or similar projects. Applicants should be aware that IRC will contact references and other sources to corroborate any of the information provided in the proposal.

g.  List of all projects with other regional centers and the current status of each project.

h. Specify any history of activities which have had a serious negative impact upon development projects, tenants or residents including, but not limited to:  financial losses (e.g., foreclosure), or serious investigation or citation under the California Administrative Code, the Penal Code or Regulations of the State of California, or the laws of other states, or the Federal Government. Any information withheld or omitted may result in disqualification of the proposal or termination of the contract.

i. Organizational Documentation

i.            For Non-Profit Corporations

1.      IRS approval of 501(c) (3) status

2.      Articles of Incorporation stating that, as part of its mission, the organization will develop and manage affordable homes for individuals with special needs, including those with developmental disabilities, and identifying the leadership and responsibilities of the HDO.

3.      Corporation By laws that defines the purpose of the HDO to develop and manage affordable homes for individuals with special needs, including those with developmental disabilities and any tenant restrictions.

4.      A list of current officers and Board Members.

ii.          For Limited Partnerships

1.      A certificate of Limited Partnership (LP-1)

2.      Amendment to Certificate of Limited Partnership (LP-2), if any

3.      Current Limited Partnership Agreement, as amended, which defines that the purpose is to develop and manage affordable homes for individuals with special needs, including those with developmental disabilities, and identifies the leadership and responsibilities of the LP

iii.         For Limited Liability Companies (LLCs)

1.      Limited Liability Company Articles of Incorporation (LLC-1)

2.      Limited Liability Company Certificate of Amendment (LLC-2), if any

3.      A fully executed operating agreement and all amendments which define that the purpose is to develop and manage affordable homes for individuals with special needs, including those with developmental disabilities, and identifies the corporate leadership and responsibilities of the LLC

j.   Financial Standing – IRC will evaluate financial statements in order to determine the applicant's financial ability to cover start-up costs and stability to meet the long-term commitment to hold and manage the properties.

i.    Provide three (3) years of most recent audited financial statements with an unqualified audit opinion completed by a Certified Public Accountant using generally accepted accounting practices (GAAP).

ii.    Provide current year-to-date financial statements or trial balance of the HDO.

iii.   Briefly outline your organization’s ability to fiscally start up this service.

II.    Implementation Plan

a.  A narrative proposal of the project that includes the proposed properties ownership structure.

b.  The plan must specify a process that ensures compliance with all state and local building requirements, including without limitation the regional center’s receipt of verification that each project has received all applicable, required permits prior to the start of any demolition, construction, or renovation/rehabilitation.

c.   Include a sequence of activities necessary to complete the project and specific to each property. This step-by-step action plan should include measurable, time limited activities toward the achievement of specific project tasks and achievement of the proposed outcome. The project objectives should be realistically achievable within the time frame. Timeline of project activities must reflect a date for the properties to be acquired and leased to a service provider within 150 days of contract execution by all parties. The activities should cover each major step of the project and should include, but not be limited to:

i.            Provide a corporation resolution that authorizes the signatory to sign on behalf of and obligate the HDO.

ii.          Provision of funding commitment letters

iii.         Provision of evidence of property site control

iv.         Loan closing and Property Acquisition

v.          Provision of evidence of property purchase, including an executed, recorded deed of trust and regulatory agreement

vi.         Provision of evidence of application to the County Tax Assessor

vii.        Provision of final sources and uses (budget)

viii.       Certificate of Occupancy (Notice of completion, if renovation)

ix.         Executed, long-term lease agreement between HDO and service provider

x.          Executed, property management agreement

xi.         Evidence of property insurance

d.    Activities which may occur within 120-180 days of contract execution by all parties

i.              Property tax exemption, if not provided sooner

ii.            Reconciled sources and uses of funds (budget)

III. Proposed Sources and Uses (Project Budget).  Allowable costs include pre-development costs, (i.e., closing and escrow; due diligence costs; environmental impact report, if indicated; survey and soil analysis), acquisition costs (funds to option, purchase, or acquire properties); development costs (architectural and engineering; permits and fees; appraisal cost; construction, legal, accounting, consultant, and project management fees, if necessary).

1. For all grants, specify the start-up budget amount you propose to be awarded for acquisition, and the start-up budget for renovation. Additionally, specify the acquisition total start-up budget amount required which must show a one to three (1:3) leveraging of awarded funds with hard (dollar) and/or soft (in-kind) commitments.

b.          A budget narrative describing how each budget line item was calculated is required to sufficiently define all terms and areas of the budget except the item for property modification.

c.           Include sources for leveraged funds, (e.g., private parties, bank loans, and foundations).

d.          Evidence may include, but not be limited to, letters of commitment; memoranda of understanding that specify a financial commitment to the proposed project.

e.          Demonstrate a leverage ratio of a minimum of three (3) dollars in leveraged funds to each one (1) dollar in CPP funds, (i.e., the CPP funds do not exceed 25 percent of the total cost of the project).

f.           Identify the projected permanent debt service.

g.          General Expenses or developer fee should address specific minor expenses that cannot be classified in any other line item.

1. Renovation and Maintenance
   1. Describe the process for securing bids from architects, property management (if outsourced) and construction services.
   2. Note whether maintenance functions are performed by HDO in-house staff or whether secured from a property management agency.
   3. Renovation reimbursement must be in accordance with the CPP Housing Guidelines and as identified in the RFP.
2. Leasing Structure
   1. Describe how the lease to a service provider is structured by defining what items will be paid by the lessee, and what will be paid by the HDO.  At a minimum address:

i.Property Taxes

ii.Insurance

iii.Building Maintenance

iv.Landscaping Maintenance

1. Describe the leasing structure to address:

i.Typical length of lease agreement

Whether the budget is structured such that no rent increases will be passed to the lessee, or an anticipated timeline with the amounts of rent increases.