421 SW 6th Avenue, Suite 500, Portland, OR 97204
To: Interested Developers and Stakeholders
From: Kurt Creager, PHB Director
RE: Fast Start Program
ORS Chapter 279 includes the “Public Contracting Code (PCC)” which sets forth the regulations governing public contracting and Section 279A.025 of the PCC exempts the “acquisitions or disposals of real property or interest in real property” from these rules. Because acquisitions and dispositions are exempt from the PCC and, consequently, the City's procurement rules, PHB is able to negotiate directly with a prospective purchaser regarding the transfer of land and PHB funding for that project.
For several years, PHB has selected developers/owners for PHB property through public solicitations including “Requests for Proposals (RFPs),” “Notices of Funding Availability (NOFAs)”, and “Requests for Qualifications (RFQs)”. Although not required to conform to the PCC or City procurement rules, these public solicitations include many of the elements required under City procurement regulations for contracts in excess of one hundred thousand dollars such as advertising of the opportunity, defined selection criteria, a pre-submission meeting for proposers, a written proposal with a published submission date and submission requirements, multiple selection advisory committees, and interviews with developer teams. These processes have the benefit of being highly transparent but are very labor intensive for all proposers and PHB; indeed some of these solicitations have taken more than six months from start to finish.
PHB will generally continue to use these historic solicitation methods for the allocation of PHB controlled funds to affordable housing projects. However, PHB also plans to use a more efficient process for a limited five (5) year term, beginning in city fiscal year (FY) 2017, to select prospective developers/owners of PHB-owned real property. Modeled after what is termed “Flexible Services Contracting” under the City’s procurement rules, this new, more efficient process will allow a pool of prequalified developers/owners to be solicited at one time for a five year period based on general qualifications. This pool of prospective developers/owners, the FAST START list, will be required to have very high degree of development experience and financial capability that will enable a property interest to move from PHB ownership to occupancy with improved efficiency. This is particularly important when PHB resources are tied up in land acquisition.
When a property becomes available for development, PHB staff will negotiate with one or more of the pre-approved FAST START developers/owners in order to come to agreement for the sale or disposition of any interest in PHB-owned real property as well as for the funding required for the development of that site. Developers/owners may also proffer sites for sale and/or development to PHB. Adopting this expedited solicitation process should increase the speed with which a small subset of PHB-funded projects are implemented in coming years.
FAST START: PROCESS OUTLINE
the purpose of undertaking the project. However, the FAST START entities or individuals will have a controlling interest in the entity that acquires the property interest.
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