Category: 
RFP


Location: Cumberland, MD

Local Government Supported Missing Middle Housing Development

Closing: September 7, 2023

Full RFP: https://alleganygov.org/bids.aspx?bidID=179

Description
In order to attract and retain a qualified workforce, Allegany County is seeking to leverage 11.92 acres of real estate that it owns in Cumberland, MD, to spur new market-rate housing for current and future residents. Cumberland is a historic city in the Appalachian Mountains, home to walkable streets and ample bike trails. In keeping with its image as an affordable community, the target housing price range for Allegany County is between $200,000 to $250,000 per unit. Given the recent inflationary pressures placed on the construction sector, reaching these target home costs are not feasible without local government intervention.

To mitigate high construction costs, the County will act as development partner and conduct all planning, design, engineering and construction in preparation of the site for said new housing units. This includes infrastructure (water, sewer, electricity, telecommunications, gas, roads), neighborhood improvements (sidewalks, signage, light standards) and administration (zoning approval, new roads approval, subdivision, legal framework). The goal is to mitigate almost all costs to the developer other than the construction of the units themselves, so that 1) the per unit price remains affordable to current residents and 2) that the neighborhood generates ample market demand, due to its modernity and livability. ECD wants to make the construction, sale and transfer of each new home a seamless process for the developer or developers chosen for this community.

Addendum 2 - Recorded Questions

  • Q: In seeking equity for the project, would the county consider the county-owned land and/or a portion of the county-owned land to be used as collateral to develop the models needed to sell the homes on the site? A: No, this is not a possibility. As per the RFP, the developers will enter into a development agreement with the County, who shall retain ownership of the land through an HOA, which, in turn, shall be transferred to residents once an occupancy threshold has been reached. It cannot be collateralized. The County's contribution to the project is through the land itself, as well as the millions of dollars of infrastructure expansion and neighborhood improvements.
  • Q: Would rent to own be an acceptable pathway considered by the county for affordability to reach potentially younger residents? A: You may use whichever financial or legal mechanism to sell the units, including by providing financing for them yourselves, however the occupant must be the owner (i.e. the unit must be sold to another party, whether that party leases the unit after the fact is up to the HOA).
  • Q: With the assembly of the various team members and financing of the project, would the County consider extending the Request for Proposal due date by four weeks to accommodate the finalization of support letters and financial agreements to assist with the completion of a thorough proposal? A: This could be possible, if we receive additional requests.
  • Q: Who makes up the review committee? A: The review committee will be made up of five members that are public employees; two from the City of Cumberland and three from Allegany County. They will consist of a mix of economic development professionals, planners and engineers.
  • Q: How does the decision get made on which plan will be the most desirable? A: As covered in the RFP, the scoring matrix will dictate the overall score for each submission. The Review Committee will compare their findings and decide on a winner or winners, based on the highest cumulative scores. This winner will be sent to the County Commissioners as a recommendation for award.
  • Q: Will there be any security guarantees to ensure that both parties (County and developer) meet their obligations? A: Yes, a development agreement will be reached, which shall be binding between the two parties. This can be explored in more detail once the winning bid or bids has been selected.

How to Apply
During the initial period of the bid opening, all potential bidders may ask questions until Monday, July 10, 2023. All questions will be answered in a timely manner that corresponds with Allegany County Procurement Policy and the Maryland Procurement Manual, and shall be published within 48 hours of the close of questioning, with all questions to be published as an addendum no later than close of business (4:00 PM EDT) of Wednesday, July 12, 2023.

Bids will no longer be accepted after the close of the bid period, which is Friday, August 25, at close of business (4:00 PM EDT). Once all bids have been received, they will be unsealed and sent to the review committee the following Monday, July 3, 2023. The review committee will take three weeks to review all bids and select winners.

The target date for announcing the winners will be Thursday, Friday, September 8, 2023. However, depending on the volume of bids received, this may be subject to change, but will be clearly communicated.  

Bid packets must be submitted both digitally and physically no later than Friday, August 25, 2023, by end of business 4:00 PM EDT. Physical bid packets postmarked by August 25 will be accepted. Those that are not will be disqualified. Please send physical copies to:

Attn: Economic Development - OAHS Bid
701 Kelly Road, Suite 400
Cumberland, MD 21502

Digital copies must be sent to astrott@alleganygov.org.