HCHFC Hardy Yards RFP 1
Frequently Asked Questions
Who should I contact if I have questions?
All questions should be emailed to the HCDHardyYardsRFP@harriscountytx.gov email address. Persons desiring further information or interpretation of the RFP requirements must make a written request for such information to HCHFC by April 25, 2025. Changes to the RFP documents will be made by addendum only. Questions and Answers that are significant will be provided as a Clarification Document(s). RFP Available on the HCHFC Website: https://harriscountyhfc.org/
What is the submission deadline and instructions?
Proposals must be submitted by 2:00 p.m. CST on Friday, May 30, 2025. No exceptions.
Where can I access the required background materials and attachments?
https://harriscountyhfc.org/rfp-hardy-yards/ and navigate to Project Documents and click on the tab entitled Final Exhibit B Table of Contents-March 27, 2025.
How long will it take for my application to be reviewed?
Most applications typically take 3-4 weeks to review.
What’s the approval/award process like?
Following the award of the development opportunity, the selected Development Partner will be required to execute an MOU, and the HCHFC affiliate and Development Partner affiliate will enter into a limited partnership agreement to formalize and facilitate the partnership and the development. The partnership shall establish the terms, location and design requirements for such ground lease, if applicable, in accordance with the executed MOU, and requirements of applicable funding sources.
How are applications scored?
What are the specific loan terms for ground lease?
Can I use the most current TDHCA utility allowance for my application submission?
Is it anticipated that all projects would use either 4% or 9% tax credits, or is pairing with a refinance of an existing multifamily property sufficient?
Is it anticipated that all projects will be funded with Tax-Exempt Bonds with Harris County Housing Finance Corporation as the bond issuer?
Is there an option for a ground lease structure with a Real Estate Tax exemption? Have the terms of using Harris County Housing Finance Corporation as a bond issuer been determined?
How does HCHFC foresee the timing of their application review and award of funds, pairing with the state allocation of tax-exempt bonds and 4% LIHTC?
Which entities are eligible to act as the bond issuer for 4% LIHTC projects awarded with funds from this RFP? Are City of Houston-related entities eligible to be the bond issuer (i.e., Houston Housing Authority, Houston Housing Finance Corporation)?
Will Housing County Housing Finance Corporation be a required participant in the ownership structure?
The selected Development Partner will enter the following anticipated ownership and financing structure with HCHFC following the award of the development opportunity:
HCHFC under the Landowner, or another Single Asset Entity (SAE) of which HCHFC is the sole member, will own the land fee simple under a permanent affordability housing strategy for a 99-year term and will ground lease the Property to the Development Owner, potentially qualifying the Property for a 100% property tax exemption under Equitable Title for the land and improvements with eligible ownership structures. HCHFC proposes it or its solely owned affiliate act as the general partner of the Development Owner and that HCHFC or an affiliate, directly or through a joint venture, will be the general contractor to potentially confer Sales tax exemption on materials. HCHFC’s legal counsel is Bracewell, and its financial advisor is Stifel. For more information on the deal structure, please review pages 4-5 in the project document entitled RFP Hardy Yards LIHTC March 31, 2025.
What is an IRS Form specified?
Is there a filing fee for the application?
Is there an ongoing monitoring fee or other fee for Harris County?
Is there an approved General Contractor list?
Will the HCHFC post on their website a list of all received applicants?
Is the RFP for Tract 1 and Tract 2, or just Tract 2?
Is there a recording, minutes, or notes available from the 4/11/2025 Pre-Submittal Conference sessions?
Yes, and it will be posted here: https://harriscountyhfc.org/rfp-hardy-yards/.
What is the estimated Land Value for this parcel?
The land value is $40 a square foot.
Is the HFC contributing to the financing of the project?
We will be conveying that as a ground lease for 99 years. The HFC would be using the land contribution as an equity source in the project.
Has there been any discussion regarding Project Based Rental Assistance for a portion of the units-specifically those at 30% of AMI to 55% of AMI?
We have engaged in discussions with Houston Housing Authority, Harris County Housing Authority it it’s not something that that we bring to the table because we don’t have control over the vouchers.
What are the city parking requirements per unit type?
There is potential reduction in required parking for our adjacency to mass transit and other things.
Is there any preliminary construction pricing?
This is evolving and there are still discussions. The project bringing the proposal to us would have to determine what you think you construction total development cost is and what would be incorporated into your sources and uses.
What are the expected lease terms as far as payment? Is that a lump sum, paid monthly/annually, hard repayment, and what would be expected as far as amount? We have various structuring fees that that we use on our partnership projects and there is going to be a fee related to the bond application also on in terms of the bond annual fee that we were seeing. We do have a three-year fee up front. Then an annual fee, depending on whether it’s going to be a credit enhanced project or not.
The proposed site plan indicates a total of 4 parcels with Parcel 2 being the subject of this RFP. Will there be any rights to future development parcels given to the selected developer for Tract 2?
Further details are provided as Addendum #1 to RFP. Further information will be provided as available.
What is the target population- family, senior?
Family
Do you expect everyone to assume a 200-unit transaction for the purpose of the responses?
This would allow for an apples-to-apples comparison. 200 is the minimum, however, there are points awarded for both the affordability mix when you have the lower income units, more than the minimum and for the total number of units. Projects are typically capped at the 250.
Is HCFA open to a tax exemption?
Will the Harris County Housing Finance Corporation assist in the process of obtaining Project Based Vouchers from the applicable Housing Authority?
The gap.
Will the Harris County Housing Finance Corporation assist in the process of obtaining Project Based Vouchers from the applicable Housing Authority?
We have engaged in discussions with the Houston Housing Authority, and Harris County Housing Authority. It’s not something that we will bring forward, as we don’t have control over the vouchers.
Could the Harris County Housing Finance Corporation provide a copy of the market analysis that was mentioned in the RFP and discussed during the RFP workshop that speaks to the need for park space, accessible design, and is the basis for commercial/retail space?
A copy of the market analysis will be sent.
Are the 90 parking space criteria for the commercial space intended to be a requirement to exceed the 4 spaces per 1,000 required by building code or is there flexibility?
HCHFC acknowledges that this project may face constraints where full compliance may be difficult or impossible. It is intended that such unique constraints are identified during the design process, and that the applicant may request a modification or waiver to specific standards and requirements, which will be reviewed on a case-by-case basis to determine whether specific standards should be modified or waived for reasons and purposes acceptable to the County. Requests for modification or waiver to specific standards must be in writing and document the applicant’s need and unique situation. When such modifications or waivers are granted, additional requirements may be imposed by HCCSD; HCHFC.
Please provide an estimate of the HCHFC’s legal and financial advisor costs for this transaction.
Stifel Fees
The following fees apply:
- Financial Advisor Fee: 0.20% of the bond par amount
- GP Advisor Fee: $120,000 (flat fee)
All fees are payable at closing and are contingent upon the successful closing of the transaction.
Bracewell Fees
Estimated fees for Bracewell’s services as counsel to the Harris County Housing Finance Corporation are as follows:
- Bond Counsel Services: 1.00% of the bond par amount, subject to a $250,000 minimum
- ARPA Document Preparation and Modification: $125,000
- Special Real Estate Counsel: $100,000
Note: The fee amounts listed above are estimates and may vary depending on the specific details of the transaction.
Please confirm the applicant is allowed to form a single-purpose entity after receiving an RFP award if applying under a different but affiliated entity.
No.
Please provide the form of the MOU that was referenced in Section 9 of the RFP, as it was not included in the Reference Materials.
A copy of the MOU will be sent upon request.
How will HCHFC evaluate the attainability and reasonableness of the construction costs, operating expenses and market commercial rent assumptions across the respondent proposals to ensure a fair process?
Comparing the proposed assumptions to local market data, industry standards, and historical performance. The HCHFC has experienced staff in place to ensure accuracy and objectivity. A sensitivity analysis will be conducted to assess how changes in key assumptions, such as construction costs or vacancy rates, will impact the project’s financial performance.
How will the financial gap be scored as part of the final RFP response to be submitted (note that the RFP places most of the weight of this in the written interview questions section that follows the RFP response)? The RFP incentivizes showing a small financial gap however, we believe it is important to have an appropriate balance of conservatism and optimism.
The following will be considered: overall budget vs. funding, the gap’s severity, and the project’s overall impact. Higher priority will be given to those with a smaller gap.
Can you provide us with an idea of how much capacity the local infrastructure has for discharging on site detention? This is important for determining a rough size of onsite storage.
“A 24” RCP has been extended to the property near the intersection of Fulton St. and Leona St. along the east property line of the overall tract. This storm sewer serves the majority drainage area of the tract. In addition, a 60” RCP runs along the south side of Burnett St. serves a smaller drainage of the tract. We recommend you pull the plans from the adjacent multifamily project to the east and consult with your design professional.
Detention is required and must be designed in accordance with Chpt. 9.2.01.H.3 of the City of Houston Infrastructure Design Manual, current addition. The current manual requires a detention rate of 0.91 to 0.98 acre-feet per acre depending on your proposed percent impervious area/disturbed area.”
Does HCHFC support partnerships where a nonprofit in formation may co-develop the project alongside a private development partner?
No.
Are there additional review considerations or scoring preferences for proposals with unique wraparound service models, such as on-site healthcare, therapeutic gardens, and vocational training programs?
No.
Would community-owned/cooperative elements, like shared equity models or nonprofit leasing with operational control, be permissible within ARPA SLFRF and LIHTC guidelines?
No.
Is phased development permitted, particularly if initial construction meets the 200-unit threshold with future community components (e.g., agriculture, hospitality) following in later stages?
No.
Can the 4.1-acre ground lease support innovative housing types, such as accessible small homes or universal design apartments with shared amenities?
No.
Would a nonprofit operator be allowed to lease or manage the development if not acting as the primary construction lead?
No.
What is the anticipated post-selection timeline for negotiating lease terms, accessing tax credit opportunities, and beginning pre-development work?
Approximately, two-six weeks.