Hillsborough-Western Redevelopment

REQUEST FOR QUALIFICATIONS
FOR THE REDEVELOPMENT
OF CITY-OWNED PROPERTY
HILLSBOROUGH-
WESTERN
raleighnc.gov

Request for Qualifications (RFQ) # 274-HCD-FY26-18
Title: Hillsborough-Western Redevelopment
Issue Date: June 16, 2026
Due Date: August 7, 2026 no later than 5:00PM EST
*LATE PROPOSALS WILL NOT BE ACCEPTED*
Issuing Department: Housing and Community Development
Direct all inquiries concerning this RFQ to:
Lauren North
Redevelopment Projects Administrator
Email: redevelopment@raleighnc.gov

Table of Contents
1 INTRODUCTION ...........................................................................................................3
1.1 Purpose ............................................................................................................. 3
1.2 Background ........................................................................................................ 3
2 Subject Properties Overview and Project Requirements ......................................... 4
2.1 Site Description .................................................................................................. 4
2.2 Zoning ................................................................................................................ 5
2.3 Future Development Considerations and Priorities............................................. 5
3 QUALIFICATIONS PACKAGE .....................................................................................7
3.1 Request for Qualifications Required Document Format ...................................... 8
3.2 Additional Required RFQ Documents and Forms ............................................. 12
3.3 Qualifications Package Documents .................................................................. 12
4 SUBMITTAL EVALUATION ........................................................................................ 12
4.1 Evaluation Criteria ............................................................................................ 13
4.2 Selection .......................................................................................................... 13
5 Process Overview and Timeline ............................................................................... 13
5.1 Process Overview ............................................................................................ 13
5.2 Timeline ........................................................................................................... 14
5.3 Pre-Submittal Conference ................................................................................ 14
5.4 Questions ......................................................................................................... 14
5.5 Submittal Requirements and Contact Information ............................................ 15
5.7 Business Engagement and Opportunities ........................................................ 16
5.8 Rights to Submitted Material ............................................................................ 16
5.9 Communications .............................................................................................. 16
5.10 Lobbying .......................................................................................................... 16
5.11 Conflicts of Interest .......................................................................................... 17
5.12 Proposer Expenses .......................................................................................... 18
5.13 Proposer Acceptance ....................................................................................... 18
Appendix I - Proposer Questionnaire......................................................................................19
Appendix II - Reference Questionnaire (Instructions)............................................................20
Appendix II - Reference Questionnaire Form..........................................................................21
Appendix III - RHA Terms Framework......................................................................................23
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1 INTRODUCTION
1.1 Purpose
The City of Raleigh is seeking qualified for-profit or non-profit development partners for the
redevelopment of parcels at Hillsborough Street and Western Boulevard as a transit-oriented,
multifamily, all-affordable or mixed-income rental housing development.
The redevelopment site consists of a cluster of City-owned sites located at 0 Western Blvd.,
5508 Western Blvd., 5507 Hillsborough Street, and 5511 Hillsborough Street totaling
approximately 3.5 acres (the "Hillsborough-Western Site" or "the Site"), and will be made
available via long-term land lease. These City-owned parcels present a unique opportunity for
the City to create affordable housing along the planned Western Boulevard Bus Rapid Transit
(BRT) corridor. The City encourages creative proposals and is looking to developers for
innovative ideas that maximize the potential and efficiency of this site.
The City will utilize a two-step solicitation process.
Step 1: The City will issue an RFQ solicitation and will vet and create a short list of prequalified
developers; followed by,
Step 2: The prequalified developers selected in the previous step will be invited to respond to
a Request for Proposal (RFP) for the Hillsborough-Western Site.
An overview of the Hillsborough-Western Site and project requirements are provided in
Section 2 of this document.
All information related to this solicitation, including any addenda, will be posted to the North
Carolina electronic Vendor Portal (eVP) at https://evp.nc.gov/.
All questions related to this solicitation must be submitted in writing (via email) to the following
individual - questions submitted via telephone will not be answered:
Contact Name Email Address
Lauren North Redevelopment@raleighnc.gov
1.2 Background
The City of Raleigh, the Capital City of North Carolina, remains one of the fastest growing areas
in the country. A great economy, top educational institutions, and exceptional health care
facilities are some of the characteristics that attract people to the triangle area. The mild
climate, diverse work force and proximity to Research Triangle Park combine to make Raleigh
a great place to live.
Raleigh is a 21st Century City of Innovation focusing on environmental, cultural, and economic
sustainability. The City conserves and protects our environmental resources through best
practice and cutting-edge conservation and stewardship, land use, infrastructure and building
technologies. The City welcomes growth and diversity through policies and programs that will
protect and enhance Raleigh's existing neighborhoods, natural amenities, history, and cultural
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and human resources for future generations. The City leads to improve quality of life for
neighborhoods and standard of living for all citizens. The City works with universities, colleges,
citizens, and local partners to promote new technology, create new job opportunities, and
encourage local businesses and entrepreneurs. The City enlists and prepares 21st Century
staff with the skill sets to carry out the duties of the City through transparent civic engagement
and by providing the very best customer service to our citizens.
The Hillsborough-Western Site is located along the Western Boulevard corridor between
downtown Raleigh and Cary. The area is close to NC State Fairgrounds as well as NC State
University, JC Raulston Arboretum, Lake Johnson and the North Carolina Museum of Art.
The Hillsborough-Western Site has prime frontage along the planned Western BRT route, the
second of four routes to be constructed. This 12-mile route will connect downtown Raleigh to
downtown Cary, passing through NC State. The BRT will have several distinguishing features,
such as dedicated travel lanes, enhanced stations, off-board fare collections, frequent on-time
service and enhanced connections to Raleigh's existing network of public transportation. This
redevelopment site is located less than 0.5 miles from a planned enhanced BRT station stop,
which will ensure convenient, frequent, high-quality transit access for the new residents and
visitors alike.
2 Subject Properties Overview and Project Requirements
2.1 Site Description
The site includes an assemblage of four (4) parcels with the following addresses and Wake
County Real Estate PINs:
Parcel Address Parcel Pin Acreage Current Proposed Overlay
Zoning Zoning
0 Western Blvd 0784317428 0.18 R-10 RX-3 TOD
5508 Western Blvd 0784319416 1.48 R-10 RX-3 TOD
5507 Hillsborough St 0784318842 1.25 IX-3-PL RX-3 TOD
5511 Hillsborough St 0784317790 0.66 IX-3-PL RX-3 TOD
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Figure 1: Approximate map of the Hillsborough-Western Site.
2.2 Zoning
The City is leading a rezoning process of the subject properties (rezoning case Z-17-26) to
rezone them to Residential Mixed Use with a three-story height limit and Transit Overlay District
(RX-3-TOD). The initial neighborhood meeting and rezoning application have been completed,
and the second neighborhood meeting will take place on June 17, 2026. The final rezoning
decision by City Council is expected in August or September of this year.
The -TOD overlay permits height in stories to be increased by 50% when all the following apply:
- Additional stories are used for principal residential uses
- A number of units equal to at least 20% of the residential units in newly allowed stories
are affordable for households earning 60% of the Area Median Income or less for a
period of no less than 30 years from the date of issuance of a certificate of occupancy.
The developer is responsible for understanding what is allowed by RX-3-TOD zoning and the
underlying development regulations of the City's Unified Development Ordinance (UDO). More
information about the zoning can be found in the following sections of the Unified Development
Ordinance (UDO):
- Chapter 3, Mixed Use Districts
- Chapter 5, Sec. 5.5.1., Transit Overlay District (-TOD)
2.3 Future Development Considerations and Priorities
Stream Buffer
On the Western Boulevard parcels, there is a small stream that cuts through from Western
Boulevard to Carolina Ave, which is subject to the Neuse River Riparian Buffer regulations. A
50' buffer must be maintained around the stream during development and after. See additional
information regarding the Neuse River Riparian Buffer here 15a ncac 02b .0714.pdf.
Type and Orientation
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The City will leave the mix of uses to the proposers, but all proposals must include a significant
affordable housing component. The City anticipates that the most efficient and financially
feasible option will be a three- to five-story surface-parked development comprised of one or
multiple buildings. The City has conducted preliminary test fits which indicate 89-124 units are
feasible on the site. Development concepts should seek to activate and address the BRT
corridor on Western Boulevard through both their use programming and architectural design.
Affordability
Proposals must set aside at least 20% of the total units within the development as affordable
units to be rented to low-income households earning no more than 60% of the Area Median
Income (AMI), adjusted for family size, for the Raleigh, NC Metropolitan Statistical Area (MSA)
as established by the U.S. Department of Housing and Urban Development (HUD) through a
long-term legally binding agreement with an affordability period of no less than 50 years. Any
non-affordable units (e.g., market-rate units) within the development will not be subject to any
affordability requirements (e.g., income limits, rent limits, affordability period).
Additionally, a minimum of one (1) unit and up to 10% of units should be set aside for City of
Raleigh referrals. A project may propose additional units be set-aside for people with disabilities
or experiencing homelessness, however, no more than 30% of the total units can be restricted
to these populations.
Household income limits, income verification, and rent limits for the affordable units must be
reviewed and approved prior to initial occupancy (and upon subsequent lease renewals for
rental units) by the City Housing and Community Development staff.
There is an opportunity for the selected developer to obtain Rental Assistance Demonstration
(RAD) Project Based Vouchers (PBVs) through a negotiated agreement with the Raleigh
Housing Authority (RHA). RHA's basic terms for such a partnership are attached. Final terms
are to be negotiated between the selected developer and RHA. Proposers should indicate if
they intend to form such a partnership or not and describe why doing so or not contributes to
their development concept.
Gap Financing
The City is making available gap financing up to $1,500,000 to support affordable housing units
in the project. The subsidy may be used for construction-to-permanent gap financing to support
the construction of affordable units on the site.
The City encourages proposers to consider leveraging additional funding sources, such as
Low-Income Housing Tax Credits (LIHTC) and/or Wake County gap financing to achieve a
feasible project that includes deeper affordability (e.g., units at 30% AMI and under). However,
utilization of LIHTC is not required for this project. For any proposed funding sources, proposers
should provide supporting documents to demonstrate confidence that the sources can be
secured at the amount and terms proposed.
Site Ownership
The City will retain ownership of the development site and lease the land to the developer
through a long-term (i.e. at least 50-year and up to 99-year) ground lease.
Design
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While detailed designs are not requested at this RFQ stage, concept-level designs may be
included to demonstrate the high-level vision for the Site. Proposers are also encouraged to
include in their narrative responses an explanation of how the design will be compatible with
the surrounding neighborhood. Design of affordable and market rate units must be
indistinguishable.
The City encourages developers to utilize sustainability measures within the buildings and site
design. A commitment to certifications that exceed Energy Star are encouraged. Examples
include, but are not limited to, System Vision, LEED, and Energy Star "NextGen" certification,
an Energy Star score higher than what is needed to meet Energy Star Multifamily New
Construction Certification.
Projects will be expected to comply with all sustainability measures associated with applicable
funding sources and regulatory programs. The City encourages features such as renewable
energy, electric vehicle charging, conservation and protection of environmental resources,
green building, Green Stormwater Infrastructure (GSI), water conservation, tree conservation,
recycling of construction and residential waste, energy efficiency, etc.
Summary of City Priorities for the Hillsborough-Western Site
- Produce dense multifamily affordable or mixed-income rental housing of three stories or
more.
- Leverage a variety of funding sources to achieve deep income affordability (e.g., units
at 30% AMI and under).
- Include a frontage that complements the BRT corridor and encourages walkability.
- Employ high quality, innovative design that is sensitive to the surrounding neighborhood.
- Integrate sustainability features into buildings and site.
3 QUALIFICATIONS PACKAGE
Submittal responses must follow the format outlined below. The City may reject as non-
responsive at its sole discretion any submittal that does not provide complete and/or adequate
responses or departs in any substantial way from the required format.
Proposers must adhere to the following page count restrictions. Any pages that exceed
the page count will not be considered for evaluation. Pages must be standard letter (8.5 x 11
inches).:
Content Maximum Pages
Cover Letter 2 pages
Team/Firm Background and Experience 5 pages
Project Examples (4-5) 2 pages each project
Resumes/bios (up to 6 key staff members) 1 page each resume
Project Understanding/Approach 6 pages
Financial Information Not included in page count
Proposal Questionnaire + References Not included in page count
Appendices - teams may provide additional information 25 pages
regarding past projects, partnerships, or resumes of additional
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key personnel.
Members of the evaluation committee may reference
materials in the Appendix, but scoring will not be impacted by
materials that only appear in the Appendix.
3.1 Request for Qualifications Required Document Format
Responses should be divided into separate sections as detailed below. To clearly communicate
what information the City is requesting and the rationale behind it, we've included three call out
boxes.
What You Need to Submit: what you are required to submit
What We're Looking For: what we believe will make a strong response
Our Expectations: this is our baseline for "meeting expectations"
Section 1: Cover Letter
What You Need to Submit
- Provide an introduction letter summarizing the unique qualifications of your firm to meet
the needs of this project. This letter should be presented on the firm's official letterhead
and signed by an authorized representative who has the authority to enter into an
agreement with the City on behalf of the firm.
- Include the name, address, telephone and email address of the individual who serves as
the point of contact for this solicitation.
What We're Looking For
- We want to see that you understand the opportunity and project scope.
- We want to see a tailored response to this RFQ, not boilerplate marketing material.
Our Expectations
- You understand the Hillsborough-Western Site opportunity and have submitted a
thoughtful, tailored, and well-organized response that demonstrates your qualifications
for consideration.
Section 2: Team/Firm Background and Experience
What You Need to Submit
- Include background information on the development and management team and provide
information regarding the proposed legal structure of the team (e.g., joint venture,
partnership, etc.).
- Provide a project-specific org chart which clearly illustrates the roles, responsibilities, and
the reporting relationships of each team member (i.e., engineer, architect, property
manager, nonprofit partner, etc.).
- Provide resumes or bios of up to six (6) key staff members.
- Describe your team's experience partnering with public agencies, community
organizations, and funding partners on affordable housing projects. Highlight any existing
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or intended relationships with local stakeholders, agencies, or funders relevant to this
project.
- Include a list of all relevant projects completed in the last five (5) years, with location, unit
count, dates completed and current vacancy rates.
- Provide a minimum of three (3) professional references from public agency partners,
lenders, or other stakeholders from comparable projects completed within the last five (5)
years, including contact name, organization, telephone number, and email address. (not
included in page count-see Appendix II for reference questionnaire).
- Submit letters of support from other agencies and funding sources with whom you intend
to collaborate, if possible (include in Appendix).
What We're Looking For
- We want to see who is on your team, what role each member plays, and whether you
have the right people/partners to deliver this type of project at this scale.
- We want to know if you've worked with other municipalities and public entities and that
your team has a track record of working well with other partners.
Our Expectations
- Your team has experience delivering affordable housing projects and has demonstrated
successful collaboration with municipalities and public entities on affordable housing
developments.
Section 3: Project Examples
What You Need to Submit
- Highlight 4-5 comparable projects in which the key personnel of the respondent team
have played a lead role and best demonstrate the team's ability to complete a project with
similar goals. Each project example should include, at a minimum:
- Name and location of the project
- Site plans, massing, renderings, and/or photographs
- Respondent team members involved on the project and role
- Other firms involved in the project
- Scope (land area, gross square footage by program/product type, unit count, etc.)
- Number of units broken down by income/affordability level (e.g. 20 units at 30% AMI,
40 units at 60% AMI, 60 units market-rate)
- Total development cost (excluding land) and all-in cost per unit
- Development timeline, and
- Details and amounts of project financing sources (e.g bank loan, tax credit equity,
gap financing, etc)
- Description of supportive services offered (if any)
- Current vacancy rate
What We're Looking For
- We want to see case study examples of comparable size, scale, vision, and complexity
to the Hillsborough-Western Site.
- Your key personnel have experience of being in a lead role on comparable projects.
- We want to see how your team continues to deliver after the project is built, including
providing excellent property management services (if applicable), and low vacancy rates.
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