St. Clair Superior Development Corporation (SCSDC)

Equitable Neighborhood Real Estate Market Analysis & Action Plan

Funded by: Enterprise Community Partners via HUD Section (4)

Proposals are due no later than January 12, 2024, no later than 5:00 P.M. EST.

All Inquiries should be directed to:

Roscoe Morgan, Assistant Director for Real Estate and Placemaking
rmorgan@stclairsuperior.org

Executive Summary

The St. Clair Superior Development Corporation seeks proposals from qualified planning individuals or teams to prepare a comprehensive real estate market analysis and action plan. This analysis will outline pathways for SCSDC to take positive steps toward stabilizing the housing stock in our service area. It will help the community development corporation, city, and community members develop a meaningful sense of the real estate and housing market while identifying priorities and intervention strategies.

SCSDC Housing Analysis Guiding Principles

Baseline Analysis

Baseline and historical trends of the City and Region's demographics, economic conditions, rental, and homeownership market conditions, including eligible student housing, tiny homes and housing for supportive services (e.g., homeless, elderly, special needs populations, transitional housing, etc.), as well as cost of living indicators will be analyzed to develop an understanding of the present housing market.

Needs and Gap Analysis

The baseline data and historical trends will be used to develop forecasts of the community's current housing status and its housing needs, using growth projections, anticipated supportive population needs and different housing markets (i.e., rental vs. owner-occupied, price points, bedroom needs) to meet projected needs. It is anticipated that this analysis will forecast 20 years into the future, using standard intervals, such as five-year intervals.

Suitable Housing Vision and Goals

SCSDC's vision for suitable housing and the development of appropriate and authentic goals, objectives and/or guiding principles to make the vision a reality need to be crafted. The development of the study's vision and goals will likely occur after the baseline and gap analysis is completed to allow community members, stakeholders, the survey steering committee and the City Commission to use the research and data drawn to create the best direction for suitable levels of housing. Facilitated discussions with key members of the community, as well as innovative ways to engage the community, are expected to gather input to draft the study's vision and goals.

Barriers Analysis

The barrier analysis of SCSDC's housing market will consist of a critical review to identify factors preventing SCSDC's residents and prospective residents from accessing suitable housing. The analysis should review current building and land development codes to ascertain their impact on housing costs, and their impact on development of affordable housing. The analysis should also look at our regional and local lending and financing environment to identify any real barriers to specific populations, neighborhoods, and housing types that may need to be addressed.

Suitable Housing Policies and Strategies Recommendations

Using the data found in the housing market, SCSDC is looking for recommendations on short-, mid-, and long-term strategies and programs that could be implemented to achieve our housing goals. The recommendations should include both best practices, as well as innovative tools and strategies to ensure long-term affordability and suitability for SCSDC current and potential residents. Policy recommendations should also build upon the existing housing and growth recommendations presented in the 2021 Cleveland/Elyria, Oh - HUD Regional Housing Market Analysis.

Considering the Regional Lake Erie (CHEERS) master plan development targeted for the SCSDC service area Infield development of vacant lots should be promoted versus inward redevelopment strategies and when and how development costs should be incentivized or not by the city through benefit district financing.

Examine the St. Clair corridor to collect data on viable way to re-engage the store front business owners and recruit viable sustainable business for what is the longest store front corridor in Cleveland.

Housing Trends

The current number of households in the SCSDC service area is estimated at 2,000, with an expected increase/decrease of 0.02%. The aging population and declining birthrates in the service area, coupled with migration of working-age families moving out of the area in search of better employment opportunities elsewhere, have led to a smaller average household size. Therefore, despite the decreasing population, the number of households is gradually increasing. By comparison, the number of households in the area from 2010 through 2020 remained virtually unchanged. Slow economic recovery in the HMA following the housing crisis and a shift in household preference toward renting have not contributed to growth in owner-household formation since 2010. Renter households have accounted for all net household formation in the HMA since 2010. As a result, the homeownership rate has fallen to an estimated 63.6 percent as of the current date; the rate was down from 66.7 percent in 2010, which in turn was down from the 68.1-percent rate.

Housing Study Specifics*

INTRODUCTION

The SCSDC equitable housing development study is an initiative funded by the Department of Housing and Urban Development Section (4), which is administered by Enterprise Community Partners.

The goal of the program is to more deeply understand the neighborhood rental housing market. The intended depth and breadth of this study will far surpass any cursory market studies we've seen in SCSDC neighborhood to date.

STUDY GOAL

The goal of the equitable Local Home Market Analysis is to establish a Benchmark Neighborhood Affordability Index for the current neighborhood rental real estate market, and owner-occupied properties. For purposes of this study the Affordability Index is defined as the percentage of existing rental units that are affordable to residents currently making the SCSDC neighborhood median household income of $22,961 (via Center for Community Solutions). The study will also identify market intervention strategies based on existing best practices to preserve the affordability of the neighborhood as it undergoes extensive transformation over the next two five-year intervals.

OBJECTIVES AND DELIVERABLES

Conduct an exhaustive residential rental market analysis to document 100% of the rental units in the neighborhood (See Figure 1: SCSDC Service Area).

• Documentation to include the following:
• Number of units by size (no. of bedrooms.
• Age of rental units
• Number of rental units by typology (Brownstown, garden, single family home, condominium, etc.)
• Specialized population served (senior, youth aging out of foster care, chronically homeless, supportive housing, etc.)
• Income targeting of the rental units (as a percentage of Area Median Income)
• Identification of populations underserved by the current market, or the current market demand for affordable housing in the SCSDC neighborhood.
• Using the data from the market study, create a Benchmark Affordability Index for the SCSDC neighborhood for all income ranges as a percentage of AMI. Using existing HUD guidance (rent at 30% of AMI) and factoring transportation to work costs, develop an index that identifies how affordable current rental stock is to various income ranges. Create a market intervention strategy for SCSDC to impact the rental housing market, as a developer or with developers, to ensure equitable and affordable housing development patterns based on the existing best practices.

This strategy should include:

Housing Market Trajectory Report using land yield analysis for planned residential corridors and available real estate. Employ generally accepted planning practices to project the future residential density of the neighborhood based upon real estate currently available and the residential corridors planned through the Greater Cleveland Master plan 2020, and the

Neighborhood Vision Plan 2025 (happening concurrently).

• Minimum affordable housing rental targets. Based on the land use analysis, deliver target number of affordable housing units that the market must deliver to maintain current affordability of the neighborhood.
• Identification of "naturally occurring"; affordable housing that are candidates for 4% LIHTC. Identify rental housing properties that have asking rents already within the LIHTC rent ranges that are not currently restricted (possibly deed restricted) that could be renovated and preserved as affordable housing through the 4% LIHTC program.
• Identification of existing resources available to intervene in the local housing market. Identify current resources available to SCSDC either as a developer or in partnership with developers to ensure equitable housing development.
• Recommendation of resources that can grow over the long term. Using existing best practices, recommend additional resources that can be leveraged and/or created to maintain housing affordability.

Proposal Instructions:

The proposal can be up to 15 pages double-sided. (or 30 single pages total).

The cover letter, table of contents, and front and back cover will not count in your total page limit.

Please include in your response:

• Cover letter. This may be submitted as a separate document Project understanding. Reflect an understanding of the nature of MTC's request and of the neighborhood. Project team structure. Describe the structure, makeup and roles of the project team. Include all strategic partner organization(s), names, titles, and headshot of each project team member.
• Project scope. Describe how the consultant team will address the requested project scope.
• Project schedule. Please include an estimated number of hours of work for each phase of the project schedule.
• Project cost. Provide an estimate of cost based on the deliverables requested.
• Relevant experience. Include 2-3 examples of past projects that may be relevant to the nature of MTC's requests for this project.
• Team diversity. Please provide a brief statement on your efforts to increase the racial diversity of underrepresented groups in the lead firm's various departments related to professional services (planning, architecture, design, etc.)
• Team bios. Please provide professional bios and experience of the team members.
• Attachments. (Optional) Letter(s) of support and any other relevant materials. BUDGET Our objective is to solicit innovative approaches to addressing the plan elements listed in the RFP. SCSDC has committed funds of $25,000.00 for the plan in the year 2023/24.

ADDITIONAL, TERMS AND CONDITIONS

This is a Request for Proposals only. Issuance of this RFP does not obligate SCSDC to make an award or pay for costs incurred by potential respondents in the preparation and submission of a proposal.

Evaluation Process*

The award will be made to a responsible offeror who follows the RFP instructions, meets the eligibility requirements, and displays the aptitude and track record of completing projects of similar scope and scale. SCSDC seeks firms that share a commitment to organizational justice and racial equity, inclusion and belonging. The final consultant team should closely resemble the make-up of the community. Strong preference will be given to project teams with at least 20% of their combined organizations comprised of people of color. Please note that if there are significant deficiencies regarding responsiveness to the requirements of this RFP, an offer may be deemed "non-responsive"; and thereby disqualified from consideration. SCSDC reserves the right to waive immaterial deficiencies at its discretion. Best-offer proposals are requested. However, SCSDC reserves the right to conduct any of the following:

• Conduct negotiations with and/or request clarifications from any offer prior to award.
• While preference will be given to offerors who can address the full technical requirements of this RFP, SCSDC may issue a partial award or split the award among various suppliers, if in the best interest of the project.
• SCSDC may cancel this RFP at any time.

Questions About the RFP*

Submit questions via email to: rmorgan@stclairsuperior.org.

Questions, requests for clarification, and responses that SCSDC believes may be of interest to other proposers will be circulated to all recipients who have indicated an interest in responding. Only the written answers issued by SCSDC will be considered official in the RFP process and subsequent evaluation. Any verbal information received from employees of SCSDC, or any other entity should not be considered as an official response to any questions regarding this RFP. SUBMISSIONS Proposals must be received no later than 5:00 PM EST on January 12, 2024. Proposals must be emailed to rmorgan@stclairsuperior.org. Please reference the Project Name in any response to this RFP. Proposals received after the specified time and date will be considered late and will be considered only at the discretion of SCSDC. We plan to make the contract award and notify all applicants.