RFP Development Partners

Request for Proposals

Development Partners

450 Walker St NE, PO Box 2846

Cleveland, TN 37320

Issuance Date: July 23, 2025

Submission Deadline: August 18, 2025

To download a full copy of the RFP please click here

Introduction: 

The Cleveland Housing Authority, a Tennessee public body corporate and politic ("CHA"), is requesting written proposals from experienced development entities (each, a "Respondent") to provide expertise in the redevelopment of a single CHA public housing property known as Cooper Apartments (the "Project"). CHA intends to select one development partner (a "Development Partner").

• Cooper Apartments: located at 450 Walker Street NE in Cleveland, TN, Cooper Apartments has IO two-story walk-up buildings, each with 8 units for a total of 80 units. There are fifty-two efficiency units and twenty-eight one-bedroom units. CHA would like to demolish and rebuild 80 or more units on the existing site. Most residents living at Cooper Apartments are elderly and will have the right to return post-conversion.
• Cooper Apartments was built in 1971 and sits on 3.57 acres of land. There are 77 parking spaces. CHA's administrative office is located within the Cooper Apartments complex along with a laundry facility.

Cooper Apartments will be redeveloped using some or all of the following sources: tax-exempt bonds and equity raised in connection with an award of low -income housing tax credits ("LIHTC"), Fannie Mae, Freddie Mac and/or Federal Housing Administration loans, national trust funds, state and federal historic tax credits, HOME funds, Community Development Block Grant ("CDBG") funds and loans provided under the Affordable Housing Program through the Federal Home Loan Bank, long-term Section 8 project­ based subsidy pursuant to the U.S. Department of Housing and Urban Development's ("HUD") Rental Assistance Demonstration ("RAD") or Section 18 of the National Housing Act, HUD-insured and conventional loans secured by a mortgage (based on rent structures or mortgage payments that can be supported), non-governmental grants, and other possible sources of funding and subsidy, whether available now or to be obtained or procured by Development Partner;

Respondents under this Request for Proposals (this "RFP") are expected to coordinate and/or provide master planning services, development services, construction services, and financing services. Respondents should consider their organizational capacity, areas of expertise, prior development experience including RAD, Section 18, proposed building types, resident population, and current workloads when submitting proposals under this RFP.

Because it is CHA's goal to serve Cleveland residents with low- and very low-incomes, it is expected that the Project will incorporate affordable and public housing resources and possibly expand affordable housing opportunities. The public housing conversions will result in Section 8 replacement subsidy.

CHA's goal is to proceed with the redevelopment of Cooper Apartments as expeditiously as possible. CHA desires to participate in the RAD/Section 18 Small PHA Blend program. Responses that demonstrate an ability to complete the renovation of an affordable multi-family development on the earliest possible, realistic schedule will be favorably received by CHA. Respondents must certify their ability to start work immediately and should propose a staffing plan that describes the existing time commitments of the staff proposed to be assigned to the Project and whether any of the staff will be based in the Cleveland, Tennessee area.

Respondents are encouraged to present to CHA an experienced and qualified team, including the trades required for the success of the Project. CHA has engaged a public housing repositioning consultant, Recap Advisors, and has engaged legal counsel, Fox Rothschild LLP, to work on CHA's behalf. Respondents are encouraged to present additional team members that would be necessary for the successful completion of the Project.

CHA, or one of its affiliates, will serve as a co-developer for the Project. CHA, or an affiliate of CHA, will manage the Project.

Estimated Selection Timeline

revised July 28th,2025

Agency Background:

The following information is provided to aid prospective Respondents in understanding CHA's objectives and services requested under this RFP.

CHA is a public housing agency established in 1959. CHA's main office is located at 450 Walker Street NE. Cleveland, TN 37311.

CHA's mission is to provide affordable decent, safe, and sanitary housing opportunities to low- and moderate-income families, including elderly and handicapped persons, wltile supporting programs to foster economic self-sufficiency.

CHA is headed by a Chief Executive Officer and governed by a seven-person Board of Commissioners and is subject to the requirements of Title 24 of the Code of Federal Regulations ("CFR"), state law, program, and administrative policies. There are approximately 12 staff members in the organization who perform the following functions: property management, resident service coordination, administrative/finance functions, maintenance/modernization services and rental assistance program administration.

CHA assists eligible families address their housing needs through a variety of housing programs including Low Rent Public Housing and Housing Choice Vouchers ("HCV"). CHA currently owns and operates 114 units of public housing at 5 sites and assists over 200 families through the HCV program in the Cleveland and Bradley County area.

CHA has a nonprofit instrumentality, Tanasi Housing Development Corporation, a Tennessee nonprofit corporation, to serve as CHA's development and management component. In 2022, CHA began to redevelop its distressed public housing sites through the RAD/LIHTC program. To date, CHA has redeveloped a total of 293 units. All units are managed by CHA

For more information about CHA please visit www.clevelandhousingauthority.org.

The Development Partner's Role:

The actual services delivered in connection with the Project must include development services reasonably required to complete the planning and development of such developments and will include, but not be limited to:

Ownership Structure and Land Control

It is expected that the Development Partner, together with CHA, will form a limited partnership or limited liability company for the purpose of owning a leasehold interest in the Project. An affiliate of CHA will serve as a general partner or managing member of the limited partnership or limited liability company with an affiliate of the Development Partner for the development of the Project. Title to the land for the Project shall remain with CHA, and CHA will enter a long-term ground lease with the owner entity as tenant. This ownership structure is expected to generate a 100% ad valorem tax exemption for the Project.

Market Analysis and Appraisal

A detailed market study shall be required to determine the overall feasibility of the conceptual plan of the Project. The selected Development Partner will also be responsible for any additional market analysis and appraisals to develop and obtain financing for the Project.

Financing

The Development Partner will arrange private equity and debt financing to leverage funds available for the Project and to secure all financial commitments necessary for successful completion of the Project (hard and soft costs) all of which shall be subject to CHA's approval. The Development Partner shall assist in obtaining private financing and public financing in a timely and cost-effective manner including preparation of all necessary financing applications. CHA shall have the right to review and approve the financing arrangements and the terms and conditions of any loan documents. The Development Partner must also work with CHA in the preparation of documents necessary to provide all evidentiary material, financial guarantees, and assurances as required, including documents necessary for HUD's RAD and Section 18 programs. The Development Partner shall be responsible for all third-party predevelopment costs incurred before the closing of the Project. All such predevelopment costs that are preapproved by CHA in a predevelopment budget or otherwise shall be eligible for reimbursement. Should the Development Partner, with prior approval from CHA, obtain predevelopment financing from a third-party, the interest charged on such financing shall be reimbursed at the closing of such Project.

LIHTC Application/Solicitation of LIBTC Syndicator

The Development Partner will be responsible for the preparation of applications to obtain 4% LIHTC allocations from the Tennessee Housing Development Agency ("THDA") in accordance with the applicable Qualified Allocation Plan ("QAP") rules. The Development Partner will provide the experience certificate needed to meet the threshold requirement under the Qualified Allocation Plan. The Development Partner will also be responsible for soliciting a minimum of three (3) LIHTC syndicators to bid on LIHTCs received for the Project. CHA shall have the right to approve the identity of the LIHTC investor(s) selected and the terms of the letter of intent.
CHA intends that the conversion will be financed with both 4% tax credits and tax-exempt debt.

It is critical that the Development Partner be able to access all funding sources described herein and be able to demonstrate prior success and current ability to obtain such financing.

Coordination

All development activities, including reporting and budget requirements, must be coordinated throughout the life of the Project and the Development Partner must assure the maximum feasible contribution to the overall development effort. Leverage and maximize existing CHA land to assure replacement of existing units, if required.

Design/Approvals/Construction

The Development Partner will be responsible for the development of design, engineering, and construction documents. The selected Development Partner will be expected to utilize design principles that are compatible with the neighborhood and community surrounding the Project. Determinations about the scope of the construction, and components and materials to utilize in the construction must be made with these standards in mind. The design of the renovation of the Project shall be completed with input from CHA, and subject to CHA's review, comment and approval. The Development Partner will also be responsible for obtaining permits and any required approvals.

CHA will assist in procuring qualified architects to assign to the Project. The Development Partner shall engage a general contractor licensed in the State of Tennessee, which may be an affiliate or subcontractor of the Development Prutner. The selected architect will be responsible for certification of all documents related to design and construction. The general contractor will construct, renovate, or procure construction services, of all units of housing identified in the development plan or subsequent revisions agreed upon by CHA. CHA shall have the right to review and approve any construction contract relating to the Project. The Development Partoer will oversee construction, ensure completion in a timely and cost-effective manner and ensure that all required occupancy permits, and other necessary approvals are obtained after construction completion for occupancy and operation of the Project.

The contractors will be required to pay Davis Bacon Wage Rates ("DBWR") and submit any/all required documentation in compliance with DBWR. If applicable, this requires that wages be paid at a rate not less than wage rates for corresponding classes of employees on construction of similar character in the locality in which the work is performed as determined by the Secretary of Labor.
The construction contract shall set forth either a fixed price or a guaranteed maximum price, must be pre­ approved by CHA and shall provide for assignment to CHA in the event of termination of the relationship with the Development Partner.

The Development Partner must establish unit mix and timetables, structuring, and obtain all necessary city and county approvals. The Development Partner must also identify necessary public improvements and developing a funding plan for the samewith CHA and the city, if applicable. To the extent necessary or advisable, securing, with CHA's support, a payment in lieu of taxes agreement.

CHA reserves any third-party management agent and agreement. the right to either (i) have CHA, or an affiliate, serve as the management agent or (ii) approve

Resident/Local Employment and Contracting

The Development Partner will be required to develop and implement a program that is consistent with the goals set forth in Presidential Executive Orders 11625, 12138 and 12432 and Section 3 of the Housing and Urban Development ActofT968 ("Section 3"), which requires contracting with Section 3 business entities, and that the contractor(s) working on the site provide economic opportunities for low-income residents in Cleveland, Tem1essee. A comprehensive Section 3 employment program shall be developed and implemented as well as other policy objectives aimed at improving the economic circumstances of individuals, households, and companies in Cleveland, Tennessee. The Development Partner shall be responsible for the preparation and submittal of Section 3 reporting requirements to CHA.

Guarantees

The Development Partner will be expected to provide all guarantees of construction completion and stabilization required by investors and lenders. It is understood that the Development Partner will exit the Project after stabilization, and that the Development Partner will retain any guarantees made prior to its exit from the Project.

Long Term Affordability of Rental Property

The Development Partner must devise a means to ensure the long-term affordability of the rental property used by low to moderate-income residents, in conjunction with CHA.

Handicap Accessibility

The Uniform Federal Accessibility Standards ("UFAS") require a minimum of 5% of the units in each development to be fully accessible for the mobility impaired and an additional 2% of the units for hearing and visual impaired in accordance with Section 504 of the Rehabilitation Act of 1973, and the UFAS. CHA will require that these minimums be met or exceeded. CHA also desires to maximize the number of adaptable units that can easily be converted into accessible units. The Project must be fully compliant with the Americans with Disabilities Act ("ADA"), including but not limited to site, common areas, and accessible route to and from common areas. Finally, it is important that, to the greatest extent feasible, all units meet the current visitability standards according to HUD guidelines.

Assist CHA with the Development Process

The Development Partner shall assist CHA by ensuring that the Project complies with all applicable laws, rules, regulations and/or processes. Attachment A sets forth some of the duties that may be assigned to the Development Partner.

Marketing Plan

The Development Partner must develop an effective lease-up strategy to obtain rapid initial occupancy and maintain ongoing high occupancy of all residential units.