RFP-COB-04-19 - City of Beacon Affordable Housing Initiative

Pursuant to an In Rem foreclosure proceeding for the non-payment of real property taxes, the City of Beacon (hereafter referred to as the "City”) has acquired title to and possession of five (5) unoccupied single family homes that are in need of rehabilitation or in one case, potentially demolition.  Over the past several years, the City has seen an increase in housing prices.  The City has work force housing rentals, but also wishes to have Below Market Rate housing available for home ownership.  The City views its taking ownership of these five (5) homes as an opportunity to create “affordable” home ownership opportunities.
 
Therefore, the City desires proposals from an entity or person which will  purchase and rehabilitate and renovate all five (5) properties.  All five (5) homes need to be constructed to the same standards and have the same quality fixtures and finishes and amenities.  The City requires that three (3) of the homes be offered for sale at a Below Market Rate Sales Price (as defined below) and maintained as such forever.  Rental or subleasing of these three (3) homes will NOT be permitted.  It is the City’s intent that the selected bidder will make a fair and reasonable profit on the rehabilitation and sale of all five (5) homes by maximum profit on the sale of two (2) of the homes at fair market value. In other words, by purchasing the five (5) properties at a reduced price and selling two (2) of them at fair market value, this will allow the successful responder to sell the other three (3) at a Below Market Rate.
 
The City recognizes this is a unique request for proposals and there will likely be questions and issues that arise during the preparation of responses and the City’s review of responses.  The City will review all responses with the goal of selecting the responder who can meet the City’s goal of offering three (3) homes as a Below Market Rate Sale and ensure homeowners continued compliance with this Affordable Housing Initiative.  After the City has selected a successful responder, the City will then prepare and negotiate a sales contract that will be presented to the City Council for approval.