The City of Madison’s Community Development Division (CDD) invites interested parties to submit Letters of Interest for an upcoming Request for Proposals (RFP) process that seeks to identify development partners and, potentially, offer funding to help finance the acquisition and/or conversion of a hotel, motel or other suitable commercial property into affordable housing. Some number of units must be designated as permanent supportive housing for households with traditional barriers to rental housing as described below. CDD is seeking Letters of Interest to gauge the interest in such a project by housing developers.
Background
The City has allocated Federal funds from the American Rescue Plan Act of 2021 to support the development of affordable rental housing and supportive services focused on the population to be served by this project. More specifically, CDD intends to make available up to $3,056,197 of HOME Investment Partnerships Program funds allocated through the American Rescue Plan Act funds (HOME-ARP) to support capital costs, and up to $2,020,000 to fund supportive services. More information on the City’s plan to allocate these funds can be found in the City’s HOME-ARP Allocation Plan. CDD, at its discretion, may consider offering additional amounts of financing from the City’s Affordable Housing Fund.
Objective
The objectives for an upcoming RFP are as follows:
- To identify an organization, or collaborative group, to provide development, property management and supportive services as part of a project that involves the conversion of a hotel, motel or other suitable commercial real estate into new units of affordable housing.
- To meet federal requirements, units financed through the HOME-ARP program must serve the following populations:
- Households who are homeless as defined under 24 CFR 91.5.
- Households at risk of homelessness as defined under 24 CFR 91.5.
- Households that include members who are fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking, as defined by HUD.
- Households for whom it is believed assistance would prevent a family’s homelessness or which face the greatest risk of housing instability.
- Any project financed by the City must be situated within the Preferred Transit Oriented Development areas or Eligible Core Transit areas as shown in the City’s Affordable Housing Targeted Area Map (Attachment A).
Letter of Interest Requirements:
Entities interested in this upcoming opportunity are asked to submit a Letter of Interest to CDD by April 17th, 2023. Letters of Interest should include the following:
- A description of the organization (or, in the case of a proposed collaboration, the organizations) and its mission.
- A description of any experience the organization or group might have converting hotel, motel or other suitable commercial real estate into housing.
- A description of any experience the organization, or group, has working with the target populations (as described in item B above).
Letter of Interest Submission:
Please submit your Letter of Interest to cdd@cityofmadison.com by April 17th, 5:00pm CST.
Please note, submitting a Letter of Interest does not guarantee or otherwise impact the City’s decision in awarding these funds. Funding will be issued through RFP, interested parties must submit an application through the RFP, likely in conjunction with the annual Affordable Housing Fund-Tax Credit RFP anticipated to be issued summer 2023 or the biannual Housing Forward RFP anticipated to be issued early 2024. Awarding of any funds under the RFP is subject to review and approval by the Madison Common Council.
Contact:
Linette Rhodes
Community Development Grants Supervisor
lrhodes@cityofmadison.com | 608-261-9240
-or-
John Vogt
Community Development Specialist
jvogt@cityofmadison.com | 608-267-0742
