Request for Proposals: Property-Based Subsidies

Request for Proposals: Property-Based Subsidies

The Housing Authority of the City of Tacoma (THA) seeks competitive proposals for its property-based rental assistance. The Tacoma housing market continues to see low vacancy rates and rising rents. Affordable housing options for low-income families continues to shrink. THA can use its federal funding to find creative ways to make units available to low-income households and to serve more households in the community. Under this request for proposals, THA will accept proposals for Local Property-Based Subsidies. This program is different from THA’s traditional Tenant-Based and Project-Based Voucher programs. It is similar to the Project-Based Voucher program in that the subsidy is tied to a property, as opposed to the tenant. Like the Project-Based Voucher, THA also regularly inspects units to ensure they are safe for occupancy. The Local Property-Based Subsidy is different from the Project-Based Voucher program in three main ways:

  • Like other programs, tenants must income qualify and have incomes below set standards, but the tenant rents are fixed regardless of the tenant’s actual income. This provides predictable rent amounts for tenants rather than rent going up or down based on their income. Fixed rents make the program easier to explain, understand and manage for both tenants and landlords. The fixed subsidy also removes a disincentive for tenants to increase their earned income because the tenant’s share of the rent will not increase if they earn more. On the other hand, it also means that a tenant’s rent share will not decrease if their income goes down. In this way, it is similar to THA’s HOP program except it’s tied to a property rather than a tenant.
  • The subsidies to the owner would be set on an annual basis, subject to the property meeting negotiated minimum occupancy rates, rather than varying month-to-month based on tenant rent calculations. This provides a stable, predictable and easy to administer income stream for the owners and predictable expenses for the housing authority.
  • The owner is responsible for advertising vacancies, screening its tenants and verifying the income of tenants. The tenants will not have a relationship with the housing authority. Tenants will just realize affordable rents at the property level based on the subsidy that is being provided to the owner. The arrangement offers tenants the same tenant protections of THA’s other programs.

 

Under this Request for Proposal (RFP) and subject to funding availability, THA will provide property-based subsidies for up to 200 rental units.

Under this solicitation, THA will accept proposals for PBV assistance in the category(s) selected below:

Existing Housing — units that substantially comply with Housing Quality Standards (HQS) on the proposal selection date.

Rehabilitated Housing — units that do not substantially comply with the HQS on the proposal selection date but will be rehabilitated and available within 90 days of the proposal selection date.

New Construction — units that do not exist on the proposal selection date and are developed after the date of selection pursuant to an agreement between THA and the owner for use under the PBS program. To be eligible to apply, the development must be schedule to be complete and have received a City of Tacoma Certificate of Occupancy within nine (9) months of application.

Interested owners may request an application packet by calling Eric Lane, Landlord Engagement Specialist, at (253) 448-2751. Applications are also available online at tacomahousing.org

This Request for Proposals will remain open continuously until further notice. THA will notify the public once it has awarded all of the available vouchers and/or if THA decides to close the bid process. On a decision to close the bid process, THA will provide a 30-day notice for respondents to submit their final bids.

Completed applications for the Local Property-Based Subsidy program will first be reviewed on April 30, 2019, and future reviews will occur every 30 days after that.

For the first review, applications must be received by Tacoma Housing Authority, Attn: Eric Lane, 902 S L St, Tacoma, WA 98405 no later than 4:00 p.m. on April 30. Applications postmarked before the deadline but not received by the Tacoma Housing Authority will be held until the next review cycle.

Fully responsive proposals that are received by the first application deadline and score at least 50 points will be considered for funding. Proposals received after the first deadline and/or proposals scoring less than 50 points might be held until adequate applications are received to merit a competition. This decision will be made on a case-by-case basis.

To assist owners in understanding the program and the application requirements, an informational meeting will be held April 11th at 1:00 pm at the THA Administrative Building located at 902 S. L Street, Tacoma WA 98405. Sign language interpreters or translators will be provided by request. Accommodation requests must be received at least 72 hours in advance of the scheduled meeting.

 

Helpful Resources:

 

Submit questions in writing to the THA offices or elane@tacomahousing.org. Questions and THA's response will be found on this webpage. 

 

 

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Friday, March 29, 2019