Affordable Housing Development Services

REQUEST FOR QUALIFICATIONS
FOR
AFFORDABLE HOUSING DEVELOPMENT SERVICES
FOR TOWN OF CHAPEL HILL, NORTH CAROLINA
RFQ: A/E26-006
DATE: April 30, 2026
QUESTIONS DUE BY: 5:00 PM, May 11, 2026
RESPONSES DUE BY: 3:00 PM, June 15, 2026
Town of Chapel Hill
Department of Housing and Community Development
405 Martin Luther King Jr. Blvd.
Chapel Hill, NC 27514
1

REQUEST FOR QUALIFICATIONS FOR
AFFORDABLE HOUSING DEVELOPMENT SERVICES
FOR TOWN OF CHAPEL HILL, NORTH CAROLINA
RFQ: A/E26-006
Table of Contents
I. Introduction ........................................................................................................ 3
II. Solicitation Overview and Requirements......................................................... 4
III. Background ........................................................................................................ 7
IV. Scope of Work .................................................................................................. 10
V. Submission Requirements ............................................................................... 11
VI. Standards and Process to Select the Partner ................................................. 14
Attachments
Exhibit A - Concept Plans and Renderings
Exhibit B - Candidate Certification Forms
Affordable Housing Development Services 2
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026

REQUEST FOR QUALIFICATIONS FOR
AFFORDABLE HOUSING DEVELOPMENT SERVICES
FOR TOWN OF CHAPEL HILL, NORTH CAROLINA
I. INTRODUCTION.
The Town of Chapel Hill ("Town") is seeking a development partner ("Partner") interested in
developing affordable housing on a Town-owned property located at 101 Weaver Dairy Road
Extension (PIN: 9880-250-693) ("Site"). This Site is envisioned as a unique opportunity to
address multiple community needs within the same Town-owned property.
The Town seeks a development partner that carries a strong track record in financing,
developing, and managing high quality housing and has experience working collaboratively
with the public sector in the planning and development of affordable housing. The Town has a
strong preference to maintain ownership of the land through a long-term ground lease and to
serve households earning, on average at or below 60% of the Area Median Income (AMI). The
Town is looking for projects that maximize the number of affordable units on the Site while
minimizing the amount of Town subsidy needed. The Town anticipates that the Site may be
competitive for 4% and/or 9% Low-Income Housing Tax Credit (LIHTC) financing, but the
Town may consider alternative proposals that can achieve comparable levels of density,
affordability, and leveraging.
The Town intends to select a Partner for this Site pursuant to this Request for Qualifications
(RFQ) process. The Town will then enter into a Memorandum of Understanding (MOU) with
the selected partner, providing time and performance requirements for the Town and the
selected Partner to negotiate an agreement to prepare a proposed development project for the
site, and all necessary legal documents. The negotiated agreement and accompanying
documents will stipulate all responsibilities of the Partner and finalize all business terms
between the Town and the Partner concerning development of the Site.
Questions must be submitted via email no later than 5:00 PM on May 11, 2026, to Maggie
Simon at msimon@chapelhillnc.gov. Written responses to all questions received in writing by
the due date will be published by May 20, 2026, in the form of an addendum on the Town's
website at www.chapelhillnc.gov (Click on the "Town Government" menu, then "Doing
Business with Chapel Hill" option, then select "Bids: Current", then click on the name of this
project Click).
All submittals are due by 3:00 PM on June 15, 2026, to Lenore Bishop, Purchasing and
Contracts Manager: lbishop@chapelhillnc.gov, with "RFQ AE26-006 Affordable Housing
Development Services - "Company Name"" in the subject line. Email attachments are
limited to 20 MB per email. Late responses will not be considered.
Affordable Housing Development Services 3
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026

II. SOLICITATION OVERVIEW AND REQUIREMENTS.
The Town is seeking interest and input from potential developers, by way of this RFQ, for the
development of affordable housing on Town-owned land.
1. Schedule.
The preliminary timeline for key milestones associated with Partner selection is as follows:
Issue RFQ April 30, 2026
Questions Due May 11, 2026, 5:00 PM
Town Responses to Questions Posted as Addendum May 20, 2026, 5:00 PM
Proposals Due June 15, 2026, 3:00 PM
Respondent Interviews - Virtual July 13-17, 2026
Selection By July 31, 2026
2. Questions about the RFQ.
All questions must be submitted to Maggie Simon at msimon@chapelhillnc.gov via email
no later than 5:00 PM on May 11, 2026.
Written responses to all questions received in writing by the due date will be published by
May 20, 2026, in the form of an addendum on the Town's website at
www.chapelhillnc.gov under the Current Bids page.
3. Proposals Due.
All responses are due by 3:00 pm on June 15, 2026. Respondents shall submit an electronic
copy (in .pdf format) of the submission package via email lbishop@chapelhillnc.gov.
Email should have the subject line "RFQ AE26-006 Affordable Housing Development
Services- "Company Name"". Responses received after 3:00 PM on the Town's internal
server will be rejected.
4. Insurance.
The successful Company shall procure and maintain during the life of the contract the
following insurance coverages:
Worker's Compensation: Coverage to apply for all employees for statutory limits in
compliance with the applicable state and federal laws. The policy must include employer's
liability with a limit of $100,000 for each accident, $100,000 bodily injury by disease each
employee and $500,000 bodily injury by disease policy limit.
Commercial General Liability: Shall have minimum limits of $1,000,000 per occurrence
combined single limit for bodily injury liability and property damage liability. This shall
include premises and/or operations, independent contractors, products and/or completed
operations, broad form property damage and explosion, collapse and underground damage
coverage, sudden and accidental pollution losses, and a contractual liability endorsement.
Affordable Housing Development Services 4
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026

Business Auto Policy: Shall have minimum limits of $1,000,000 per occurrence combined
single limit for bodily injury liability and property damage liability. This shall include:
owned vehicles, hired and non-owned vehicles and employee non-ownership.
Professional Liability Insurance: The selected firm will be required to furnish proof of
Professional Liability insurance coverage in the minimum amount of $1,000,000.
Special Requirements:
The Town of Chapel Hill is to be named as an additional insured on the Commercial
General Liability policy.
Current, valid insurance policies meeting the above requirements shall be maintained for
the duration of the project. Renewal certificates shall be sent to the Town of Chapel Hill
thirty (30) days prior to any expiration date. There shall also be a 30-day notification to the
Town in the event of cancellation or modification of any stipulated insurance coverage.
Certificates of Insurance on an Accord 25 (8/84) or similar form meeting the required
insurance provisions shall be forwarded to the Town of Chapel Hill. Wording on the
Certificate of Insurance which states that no liability shall be imposed upon the company
for failure to provide such notice is not acceptable. Original policies or certified copies of
policies may be required by the Town at any time.
5. Hold Harmless.
The Contractor agrees to indemnify and hold harmless the Town of Chapel Hill from all
loss, liability, claims or expense (including reasonable attorneys' fees) arising from bodily
injury, including death or property damage to any person or persons caused in whole or in
part by the negligence or willful misconduct of the Contractor except to the extent same
are caused by the negligence or misconduct of the Town.
6. Preparation Costs.
The Town is not liable to pay or reimburse any costs incurred by the respondent in
the development, submission, or review of responses to this RFQ. This includes,
without limitation, all costs incurred by the respondent in its response to this Solicitation,
in response to any request for information made by the Town throughout the selection
process, in negotiating with the Town on any matter related to this RFQ, or otherwise,
unless specifically agreed to in writing by the Town.
7. The Town's Rights and Options.
a. The Town reserves the right to take any action during the process of this RFQ that is in
the best interest of the Town.
b. The Town of Chapel Hill reserves the right to reject any and all proposals.
8. Public Records.
Information submitted to the Town of Chapel Hill is public information and is available
upon request in accordance with the North Carolina Public Information Act. As provided
by North Carolina statute and rule, the Town will consider keeping confidential the trade
Affordable Housing Development Services 5
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026

secrets, which the respondent does not wish to be disclosed. For such information, the
respondent must mark each page in boldface at the top and bottom as "CONFIDENTIAL".
In spite of what is labeled as a trade secret, the determination of whether it is or not will be
determined by North Carolina General Statues 132-1.2(1).
Affordable Housing Development Services 6
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026

III. BACKGROUND
A. Town of Chapel Hill.
Chapel Hill, NC is a town of around 64,000 residents located in Orange and Durham
Counties, on the western corner of the rapidly growing Triangle region of North Carolina.
Chapel Hill is home to the University of North Carolina at Chapel Hill. The approximate
land area within the Town's corporate limits is about 21 square miles, bordered by a
38,000-acre rural buffer, that prohibits annexation and protects the area from municipal
expansion. The Town operates the second largest transit system in North Carolina,
providing over seven million fare-free rides per year.
Chapel Hill is a relatively affluent area with a median household income of $126,200, but
nearly one in five households remain in poverty. Already one of the highest cost housing
markets in the state, housing prices have been steadily increasing over the last 5 years, with
more dramatic upticks in recent years. Between 2020 and 2024, median rent increased by
32% and median home value increased by 40%. While 40% of all households are cost-
burdened, high housing costs have hit low-income households particularly hard - nine in
ten households earning less than $35,000 are cost-burdened.
Much of the Town's affordable housing work is implemented through the Department of
Housing and Community Development, whose vision for Chapel Hill includes a vibrant
and inclusive community where all residents have access to affordable housing and
opportunities to thrive. The department's mission is to create partnerships, catalyze
affordable housing and build community. It works to address the need for affordable
housing in our community by:
* Distributing affordable housing funding to support local projects and programs
* Designing and implementing affordable housing policies
* Owning and managing affordable housing units
* Initiating the development and preservation of affordable housing on Town-owned
land
B. Site Description.
The Site is located at the gateway intersection of Weaver Dairy Road Extension and Martin
Luther King Jr. Boulevard, 3.5 miles from Chapel Hill's main street (Franklin St.) and 0.5
mile from the closest exit to Interstate 40. Currently, the property includes the existing Fire
Station 4 and a fire training facility spread over 4.11 acres. The portion of the site
envisioned for affordable housing fronts Martin Luther King Jr. Boulevard and is near a
variety of transportation and community amenities including a planned Bus Rapid Transit
stop, shopping, grocery stores, pharmacy, restaurants, retail, and health care services.
Affordable Housing Development Services 7
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026

Based on the 2026 Qualified Allocation Plan for the North Carolina Housing Finance
Agency's Low Income Housing Tax Credit (LIHTC) program, the Site may be competitive
for a 4% or 9% LIHTC award.
C. Project History.
The existing Chapel Hill Fire Station 4 is beyond its useful life and needs replacement.
There is a simultaneous and urgent need for additional housing units, especially affordable
housing units, within the Town to support increased demand for residency and to increase
housing access across a range of incomes and housing types. Because the availability and
price of land is a major barrier to building additional affordable housing locally, the Town
has pursued the development of Town-owned parcels as a key strategy to address the local
shortage of affordable housing. The Town is currently working with development partners
on four affordable housing projects on Town-owned land, with more in the pipeline.
Fire and Affordable Housing staff have been working with a design and engineering
consultant team over the last several months to re-imagine the Fire Station 4 site to include
a new fire station adjacent to affordable housing. The team is exploring an innovative
design concept that aligns with Council's values and the Town's plans for this gateway
corridor and incorporates typical LIHTC development standards.
The new fire station will be constructed on the portion of the site where the existing training
center is located, and the training center will be relocated to an alternate location. The
relocation of the fire station frees up Town-owned land at a key intersection along the
proposed Bus-Rapid Transit corridor. Given the Town's high demand for affordable
housing, the redevelopment of Fire Station 4 presents an opportunity to address that
demand at this location. Preliminary concept drawings are included in Exhibit A.
D. Vision.
Town staff have established the following goals for the Fire Station 4 site, based on the
needs of the future fire station as well as the Town's affordable housing goals:
* Provide housing affordable to a range of income levels with priority for units
serving households earning 60% or less of Area Median Income
* Maintain long term affordability (30+ years for rental, 99 years for homeownership)
* Minimize need for Town funding through leverage of outside sources
* Utilize environmentally friendly and sustainable principles for development
* Support connectivity within the Site and with the surrounding neighborhood
* Retain Town ownership of the Site
* Complement design of the future fire station
* Maintain consistency with the Town's Complete Community Framework
Affordable Housing Development Services 8
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026

E. Town Support for Project.
The Town Council's adopted FY 2023-25 Strategic Focus Areas and Goals include a focus
on Affordable Housing & Housing Production in order to increase housing across a range
of income and housing types to achieve equitable housing outcomes for historically
marginalized populations. This includes increasing the availability of affordable housing.
In working toward that goal, the Town has been utilizing Town-owned land to create new
opportunities to support affordable housing development with deeply discounted land
prices in optimal locations
The Town also offers a variety of incentives and resources to support the development of
affordable housing:
* Streamlined development review process with robust staff support for Town
priority projects.
* Waiver of most development-related fees for the portion of a project that provides
permanently affordable housing that remains affordable for at least 20 years.
* Long-term ground lease at a nominal rate to reduce upfront acquisition expenses
and overall development costs.
* Gap financing through the Town's local Affordable Housing Funding Program and
an Affordable Housing Bond, which was approved by voters in November 2024.
Affordable Housing Development Services 9
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026

IV. SCOPE OF WORK.
A. The Developer Role.
The Town seeks an experienced and capable development partner to carry out the following
activities in development of the Site:
1. Development Plan: In collaboration with Town staff, their consultants and the broader
community, finalize the development plan, including site layout and design, housing
mix and affordability levels, and project financing. The Partner is responsible for
ensuring that the final development plan is financially viable and implementable.
2. Community Engagement: Work with Town staff and the community to gather public
input for the proposed development. It is expected that the Partner will host any
necessary community meetings to gather community and stakeholder input on the
development program and design.
3. Pre-Development: Conduct analysis of local housing needs and demands to support
the proposed housing mix for the Site. Work with Town Staff and consultants to finalize
plans needed to secure project entitlements and permits.
4. Financing: Identify and secure financing required to construct and operate the
proposed development. As part of a development contract with Partner, the Town will
require a detailed financing plan for the development that outlines sources and uses
during both construction and permanent operating phases of the development. It will
identify estimated total development costs, a 15-year cash flow, operating reserves,
general partner asset management fee, residual receipts sharing with the Town, and
funding of reserves.
5. Development Team: Hire and oversee the team to implement the respondent's
proposed workplan. Key members of the team, including the general contractor and
property management entity, will be subject to separate Town review and approval.
Developer is expected to be familiar with and comply with North Carolina contract and
procurement law, including, but not limited to North Carolina General Statute Sec.143-
128.2 and 143-128.4.
B. Town Role.
The Town of Chapel Hill will play the following roles in the development effort:
1. Land ownership: the Town anticipates retaining ownership of the land parcel included
in this RFQ by entering into a long-term ground lease with the selected entity under
terms of a development contract to be negotiated with the selected Developer.
2. Entitlements: The Town expects to procure a Partner before a conditional zoning
application is submitted and/or approved. The Department of Housing and Community
Affordable Housing Development Services 10
RFQ: AE26-006 Town of Chapel Hill
April 30, 2026