MANUFACTURED HOME PARK COMMUNITIES

Funding Availability

New York State Homes and Community Renewal (NYSHCR), New York State Energy Research & Development Authority (NYSERDA), and the New York State Office of the Attorney General (NYSOAG) are making up to $3,000,000 in subsidized loans, grants and technical assistance available to manufactured home park communities committed to making environmental, social and economic improvements. NYSHCR, NYSERDA, and the NYSOAG seek to award no more than 5 projects through this Request for Proposals (RFP).

Funding is made available from NYSOAG settlements, NYSHCR’s Manufactured Home Advantage Program, and the NYSERDA Clean Energy Fund. While NYSHCR funding may be used to address all project needs, NYSOAG and NYSERDA funding will be available only for specific energy efficiency and clean energy measures. At minimum, successful proposals will demonstrate a cost share commitment of 30 percent of the total project budget, which may take the form of in-kind services, such as staff time, debt or additional grant or private funding.

Depending on the proposed project activities and needs, qualified Applicants may be eligible for additional subsidy programs currently offered through NYSHCR and NYSERDA. Programs include, but are not limited to, the Affordable Housing Corporation (AHC), Community Development Block Grant (CDBG), the State of New York Mortgage Agency (SONYMA), NYSERDA EmPower, NY-Sun, Air Source Heat Pump (ASHP) program and Ground Source Heat Pump (GSHP) geothermal rebates, and Weatherization Assistance Program (WAP). The State will work with awarded Applicants to streamline application processes for these programs, when necessary to achieve program goals.

This RFP describes the available funds, the method used to accept and evaluate applications for funding and includes the required application form. Applications must be submitted via email to [email protected] no later than 3:00 PM (EST) on Friday August 2, 2019. Applications received after the specified date and time will be deemed ineligible and will not be considered for funding.

Background

The goal of this program is to demonstrate that investments in environmental, social and economic sustainability improvements will have tangible affordability, quality and security benefits for both the owners and residents of manufactured home park communities. With respect to environmental sustainability, the program may provide funding for drinking water and waste water treatment upgrades, improve park resiliency to weather events and power outages, and other sustainability measures. However, the program prioritizes advancing approaches to achieving carbon neutrality through new or innovative applications of energy efficiency and/or clean energy. The demonstrations from this program will be developed into case studies and other guidance to promote environmental, social and economic sustainability improvements at other manufactured home park communities.

Why focus on manufactured home park communities? As one of the only naturally occurring sources of affordable housing, there are nearly 2,000 manufactured home park communities in New York, housing mostly low- and very low-income residents. Housing expenses – utilities, lot-rents, and home financing payments - are particularly burdensome for residents of manufactured home park communities. Through this RFP, selected manufactured home park communities and their residents will be able to demonstrate for the larger community that sustainability measures reduce this burden significantly and increase the wellbeing of residents. Proposals should be driven by the following goals:

Carbon Neutrality: Climate change, driven by human emissions of greenhouse gases, is adversely impacting well-being, public health, and natural resources of New York, and especially heightens the vulnerability of disadvantaged communities, which often bear the environmental and socioeconomic burdens. By eliminating greenhouse gas emissions through energy efficiency and/or clean energy, manufactured home park communities can demonstrate the applicability and affordability of measures that achieve net zero carbon dioxide emissions (carbon neutrality). The climate change benefits (i.e., carbon emission reductions) and cost-savings associated with achieving carbon neutrality through new and innovative applications of energy efficiency and/or clean energy can be assessed - thus providing a measure of project benefits to the environment, and the owners and residents of manufactured home park communities.

Energy Efficiency and Housing Quality: Many presently occupied manufactured homes were built before federal regulation of energy performance or efficiency. These homes tend to be in poor condition with significant capital needs or, in some cases, warranting complete replacement. Recent advances in the factory production and placement of this housing stock has led to opportunities to create scalable, energy-efficient and technologically-advanced housing communities (e.g., net-zero housing), that promote environmental sustainability while preserving deep affordability.

Water Use and Treatment: Water usage and treatment is another ongoing concern for many manufactured home park communities, which often rely on septic tanks for wastewater treatment and private wells for drinking water supply rather than public water infrastructure. Communities may benefit from water system upgrades as well as conservation measures in order to sustain health and safety and decrease costs.

Flood Resiliency: Many manufactured home park communities in New York are susceptible to flooding simply due to their locations along rivers and lakes. With climate change leading to increased storm surges, implementing flood mitigation measures and avoidance of the placement of homes in the floodplain altogether, significantly decreases the likelihood that residents will suffer temporary or permanent displacement or damage of their personal belongings and homes.

Affordability: Although rents in manufactured home park communities tend to be less than for stick-built homes, residents also pay the cost to finance the purchase of the home and site it in the park community. Historically, available financing for purchasers of manufactured homes in park communities has been limited to chattel loans, with interest rates averaging two to five percent higher than the conventional real estate loans. Other common types of sub-optimal financing have been retail installment and rent to own contracts, along with month to month leases. When residents have access to affordable home financing and a right to remain on their lot for the long-term, it brings overall stability and allows for economic upward movement.

Eligible Applicants

Resident owned cooperatives; not-for-profit and for-profit affordable housing companies; and individuals or companies that own manufactured home parks. To be considered eligible under this RFP, Applicants must be able to demonstrate site-control of the manufactured home park on which improvements are being proposed.

Eligible Activities

Eligible environmental, social and economic improvements listed below are examples of those that may qualify for State-provided subsidies through this RFP. Proposals to fund water use or treatment system upgrades, flood resiliency, or other sustainability improvements not listed may be considered and should be noted in the application where applicable.

While all the listed improvements as well as other non-listed improvements may qualify, proposals that demonstrate approaches to achieving carbon neutrality will be prioritized, particularly those advancing new or innovative applications of energy efficiency (e.g., net zero modular homes) and/or clean energy (e.g., community solar or geothermal heating and cooling). Proposals without any energy-related improvements will not be considered for funding through this RFP. Further, proposals that are well-rounded in terms of providing a variety of sustainability improvements will be scored higher.

Applications must seek to demonstrate the affordability, quality and security benefits of proposed improvements to both the owners and residents of manufactured home park communities.

Awarded projects must be in full compliance with all relevant local, state and federal environmental laws. The required environmental review and compliance processes will be determined based on the site location as well as the proposed capital improvements.

Regulatory Framework

Awardees will be required to enter into a Regulatory Agreement with HCR to ensure housing affordability and security for residents. The Regulatory Agreement shall be recorded with the land and will remain for 30-years, irrespective of transfers of ownership. Requirements include, but are not limited to:

• Ground leases shall be renewable;

• Rents shall remain affordable;

• Decent, safe, and sanitary conditions shall be upheld;

• Restrictions on transfers and resales may apply;

• Regular reporting on pre and post energy consumption and costs;

• Regular financial reporting.

Ineligible Activities

New York State will not be held liable for any cost incurred by Applicants for work performed in the preparation, production, or submission of a proposal. All proposal materials and information submitted as part of the application becomes the sole property of the State. No materials, curricula, media or other content will be returned to Applicants.

Evaluation and Selection Criteria

Proposals will be examined for completeness and eligibility. Incomplete proposals and those that do not meet eligibility requirements will be rejected as ineligible. Only complete proposals and those that meet eligibility requirements will be reviewed and rated. The maximum rating is 100 points.

• Background (maximum 10 points): Describes the current state of the manufactured home park, ownership structure (co-op, non-profit, for-profit) and experience in managing affordable housing and implementing environmental upgrades.

• Vision (maximum 10 points): Measures the relative magnitude and demonstration value of proposed environmental, social and economic sustainability improvements. With respect to environmental improvements, emphasis is placed on improvements that reduce emissions of climate change pollution through energy efficiency and/or clean energy, and that involve new or innovative applications.

• Feasibility (10 points): The proposal demonstrates the likelihood that the project will result in a successful implementation and achieve the outcomes sought through this funding opportunity.

• Potential for Replicability (maximum 10 points): Assesses the likelihood that the proposed scope of work can serve as a model for other Manufactured Home Communities to implement similar upgrades.

• Capacity and Support (maximum 20 points): Measures the Applicant’s ability to demonstrate full site-control of the manufactured home park and the ability to demonstrate community support for the project. Letters of support from residents and/or municipal or county officials will receive high scores. If the Applicant does not have site-control over certain homes because the homes are owned by residents and upgrades to those homes are proposed, the homeowners must indicate in their letter of support a strong willingness to accept upgrades to their homes. If residents will be temporarily displaced during construction a relocation plan and committing to the right for residents to return will be necessary to receive a high score.

• Financial Soundness and Demonstrated Need for Funding (maximum 20 points): Measures the proposal’s overall financial soundness. Applications that demonstrate an ability to leverage State-provided funds with other sources, including private debt and equity, will be weighed favorably. Proposals with reasonable administrative budgets/developer fees will receive high scores. Measures the severity of need for the proposed project based on the proposal’s analysis of existing residential conditions, and the demonstration of need for financial assistance and public funding. As noted above, successful proposals will receive assistance as needed to finalize scopes and budget.

• Readiness to Proceed (maximum 20 points): Measures the extent to which the Applicant has organized the proposal and assembled enough resources to complete the project and achieve the goals and objectives of the program in a manner that is timely, effective and on-budget. Proposals that document adequate organizational structures and procedures to implement the proposed project without delay will receive high scores.

All completed and timely received applications will be reviewed and scored. A minimum of three evaluators from three State-agencies/authorities will score applications. Tied scores will be broken with an additional evaluator, reviewing all applications.

NYSHCR, NYSERDA, and the NYSOAG reserve the right to:

• Award all, a portion of, or none of the program funds based upon funding availability, competitiveness of applications received, and feasibility of achieving project goals and objectives and completing proposed activities;

• Change or disallow aspects of the applications and make such changes conditions of its commitment to provide funding;

• Recommend funding in an amount less than requested;

• Not issue an award or grant agreement to any Applicant if it has been determined that the Applicant is not in compliance with existing State contracts and has not taken satisfactory steps to remedy such non-compliance;

• Waive any requirement contained in this RFP;

• Revise this RFP from time to time;

• Extend the submission due date;

• Disqualify Applicants based upon the results of a background check or the risk of any reputational or legal harm to NYSHCR, NSERDA or NYSOAG if an award is granted;

• Request additional data or material to support applications;

• Elect to extend and/or add funds to any project funded.

The Applicant shall disclose any indictment for any alleged felony, or any conviction for a felony within the past five years, under the laws of the United States or any state or territory of the United States and shall describe circumstances for each. When the Applicant is an association, partnership, corporation, or other organization, this disclosure requirement includes the organization and its officers, partners, and directors or members of any similarly governing body. If an indictment or conviction should come to the attention of NYSHCR, NYSERDA and/or NYSOAG after the award of a contract, they may exercise their stop-work right pending further investigation or terminate the agreement; the Applicant may be subject to penalties for violation of any law which may apply in the particular circumstances. Applicants must also disclose if any disciplinary actions, including but not limited to penalties, sanctions, fines or suspensions against the Applicant by any agency of the U.S. Government or the New York State Department of Labor.

Award Recommendations and Board Approval

Applications should demonstrate that the proposed project is feasible and outline all known implementation activities, costs, and estimated environmental and affordability impacts.

Applicants must articulate a plan to take the proposed project from pre-development work through implementation and should include a schedule, activities, costs and estimated environmental and affordability impacts for both phases. Award Agreements may be structured in two phases utilizing a stage-gate process whereby funding is initially made available for pre-development work only and implementation funds are not made available until the predevelopment work is satisfactorily completed.

Award recommendations will be submitted for review and approval by the appropriate HCR board prior to the execution of a grant agreement.

Application Status and Notification

Applicants will receive notification of the status of the proposal as follows:

• Ineligible Project: Applications for projects that are ineligible for funding under this program and funding source;

• Non-Award Notification: Application presents an incomplete, non-competitive, or not viable project and will not receive an award;

• Award Notification: Application presents a complete, eligible, competitive and feasible project.

Requests for Explanations of Award decisions may be made via email to [email protected] within ten business days of receipt of notification of ineligibility or non-award. An explanation of the Award decision will take place by phone or via email, upon request by the Applicant.

Program Grant Agreements

Applicants selected for funding may be asked to revise parts of their proposal prior to issuance of a program grant agreement. After any required revisions are submitted and approved, an agreement will be issued. Recipients will enter a 24-month grant agreement within which all funds must be expended, and all proposed accomplishments met. Funds remaining at the end of the 24-month term are subject to de-obligation and reallocation. Requests for extensions of time to complete projects will be considered on a case by case basis.

Questions & Application Assistance

Any questions regarding this RFP or the Application must be submitted via email no later than 3:00 PM (EST) on Friday July 26th to:

Madeline Fletcher

Director, Distressed Asset Preservation

Homeownership and Community Development

New York State Homes and Community Renewal