A. Site Details The parcel is approximately 9.7 acres with no wetlands and located in flood zone x. The property has infrastructure in the form of water and sewer with a park located in the rear of the parcel. The property is grassed with minimum wooded vegetation with road frontage on Cheraw Street. The City seeks and will consider all proposals that include a thoughtful site design that maximizes the number of affordable homes while balancing LIHTC requirements, stormwater management, and the context of the surrounding area. A qualified civil engineering firm as part of the development team will be critical to ensuring the success of the site plan and infrastructure plan. The City intends to collaborate with the project team to ensure the site plan and infrastructure plan are feasible and to ensure successful completion of the project. The design should combine quality architecture with materials and details that enhance the patterns of the surrounding area. B. Affordability Targets The City’s affordability goals are informed by ongoing consultation with the community, which has named housing affordability as a top priority, as well as the State Housing Finance and Redevelopment Authority’s Low Income Housing Tax Credit (LIHTC) application requirements. The affordable rental homes will target households at or below an average of 60 percent of the Area Median Income (AMI) as established and published annually by the U.S. Department of Housing and Urban Development (“HUD”) and rents will be the same as published annually by HUD for the appropriate unit sizes. The following affordability conditions are required by the City of Bennettsville in consideration of the LIHTC guidelines: • An income average across all rental homes below 60 percent of AMI • Rental homes may not exceed a maximum of 80 percent of AMI. • At least 25% of the rental homes shall target households earning up to 50 percent of AMI. • Rental homes shall remain affordable for a minimum of 30 years. The City also recognizes the need for larger unit sizes to accommodate the needs of families. As such, the City encourages a mix of unit sizes that includes two- and three-bedroom rental homes. In addition to these requirements, a strong proposal will provide longer-term affordability (i.e., 30+ years); for example, by planning to transfer long-term ownership and management of the building(s) to the City through the utilization of a ground lease. The specific details of long-term ownership will be negotiated by the successful vendor and the City. C. Project Financing The development team’s financing strategy is of central concern to the City of Bennettsville. Proposers should submit a cost proposal that includes their Sources and Uses and Development Budget. The City will favorably consider financing proposals that minimize the total cost to the City. The Affordable Housing Development plan should outline the square footage of the building(s) to be constructed, approximate construction, development and financing costs, parking, amenities, and proposed rental prices, as well as anticipated financing sources. The developer should seek financing through SC Housing’s LIHTC Programs or similar financing to mitigate the cost of constructing the affordable rental housing while maximizing the number of homes. To facilitate the comparison of cost proposals, the City asks that proposers use the following standard assumptions: • Interest on housing bond financing • Cap on 4% or 9% LIHTC credits • 5-10% annual unit vacancy rate • Standard permanent loan interest rate The developer should provide a cost proposal that contains a scenario involving the use of either 4% LIHTC credits or 9% LIHTC credits. The cost proposal should rely on the assumptions listed above to facilitate comparison and developers should propose a mix of unit income levels that minimizes the cost to the City while still satisfying LIHTC requirements.
