Valencia Grove Phase III Developer Partner

REQUEST FOR PROPOSALS (RFP)
RFP PC1463
April 2026
Valencia Grove Phase III Developer Partner
To: Prospective Developer-Partners
Issued by: Housing Authority of the County of San Bernardino (HACSB)
Project: Valencia Grove Phase III
Services: Co-Developer and Partner for the Construction of Valencia Grove
Phase III
TIMELINE:
RELEASE OF RFP: April 28, 2026
PRE-PROPOSAL CONFERENCE May 14, 2026 @ 1-2PM (link below)
(ATTENDANCE ENCOURAGED) : Please RSVP by May 7th for attendance @
procurement@hacsb.com
QUESTION DUE: May 28, 2026 @ 2PM
ANSWERS TO QUESTIONS: June 10, 2026
PROPOSALS DUE: June 24, 2026 @ 2PM
EVALUATION PROCESS: June/July 2026
PRESENTATIONS: July 2026
AWARD OF CONTRACT/BOARD September/October 2026
RFP
Contact: Angie Lardapide,
Procurement Department
procurement@hacsb.com
Document Availability: All RFP documents are available on PlanetBids Vendor Portal
Pre-Proposal Conference Link: Click Link to Join
Meeting ID: 257 665 813 031 93
Passcode: Gb3kY3Xf
Dial In: +1 559-500-2713,905273820#
Phone Conference ID: 905 273 820#

TABLE OF CONTENTS
Table of Contents.....................................................................................................................
SECTION 1: INTRODUCTION ................................................................................................... 2
SECTION 2: PROJECT BACKGROUND AND SCOPE .................................................................... 2
SECTION 3: RFP SCHEDULE ..................................................................................................... 4
SECTION 4: CHANGES TO RFP ................................................................................................. 5
SECTION 5: DEVELOPER SCOPE OF SERVICE ............................................................................ 5
SECTION 6: SUBMISSION DETAILS ........................................................................................ 10
SECTION 7: EVALUATION ...................................................................................................... 11
SECTION 8: SUBMISSION REQUIREMENTS ............................................................................ 13
SECTION 9: STATEMENTS & REQUIRED INFORMATION .......................................................... 15
Section 10: CONTRACT CONDITIONS.................................................................................................20
EXHIBIT A: CONTACT INFORMATION.................................................................................................21
EXHIBIT B: CERTIFICATION REGARDING DEBARMENT OR SUSPENSION......................................22
EXHIBIT C: HUD FORM-5369B............................................................................................................23
EXHIBIT D: HUD FORM-5369C............................................................................................................24
Exhibit E: HUD FORM-5370.................................................................................................................25
EXHIBIT F: PROPOSAL FORM..............................................................................................................26
EXHIBIT G: STATE OF CALIFORNIA LABOR CODE..............................................................................27
ADDENDUM 1: TRACT MAPS.............................................................................................................28
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SECTION 1: INTRODUCTION
The Housing Authority of the County of San Bernardino (HACSB or the Authority) invites qualified
developers to submit proposals to participate in the construction of the Valencia Grove Phase III
(Project). HACSB seeks an experienced developer partner (Developer) to collaborate in the
development of single-family homes for sale to low-income households. The Authority
encourages proposers to submit plans that are creative, yet in line with the organizational and
policy goals of the agency.
SECTION 2: PROJECT BACKGROUND AND SCOPE
A. Project Background
Located on the corner of Orange Street and Lugonia Avenue in Redlands, CA, Valencia Grove
Phase III is the final phase of the multi-phase Valencia Grove Development. This is a large-scale
redevelopment of a former public housing site on Authority-owned land. Previously completed
Phase I is comprised of 84 affordable housing units for families earning less than 80% of the Area
Median Income (AMI). Phase II is completed and consists of 104 units for families earning 80%
AMI or below. A feasibility analysis for these projects is currently underway. See Addendum 1 for
a detailed tract map.
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HACSB owns the land and aims to find a developer partner to develop and finance this project.
HACSB would like the Developer or an affiliated party to incorporate some supportive services
including down payment assistance as well as soft second mortgage financing into their proposal.
Master planning services for this homeownership development are included as a part of this RFP.
HACSB retains the right to approve or deny the chosen developer's development plans for this
phase of the project based on its overall alignment with HACSB goals and intended outcomes.
B. Development and Financing Plans
Valencia Grove Phase III will be a moderate-income, green community for first-time homebuyers.
Owned by the Authority, (with a recorded HUD Declaration of Trust) the now-vacant project area
is part of a larger redevelopment area which has replaced the former public housing units with
an affordable and walkable community. The project area site will advance the inclusive
redevelopment of Valencia Grove and provide residents with access to amenities from previously
completed phases.
Single Family Development. Included in this RFP is a proposed project plan for the development
of 39 single family homes reserved for families earning between 80% and 120% of AMI. The plan
for this development is not finalized and HACSB is open to receiving alternative site plans for
affordable homeownership units.
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Developers are encouraged to consider and propose (1) unit layouts and (2) funding sources for
the project.
Offsite work coordination may be necessary as it relates to the scope of work being proposed for
this development. HACSB will work with the chosen developer to seek additional sources of
funding to offset project-related costs whenever opportunities for leveraged sources of funding
are identified.
C. Proposed Development and Ownership Structure
The Housing Authority would like the bidding developer to propose both a development project
management structure and a long-term property management structure for the purposes of
developing and maintaining this project over time. Such a structure will likely involve the strategic
creation of various LLC's and limited partnership entities. All committed funding procured under
these entities will be utilized for the purpose of realizing this project.
D. RFP Objectives
HACSB is seeking proposals from potential developer partners to assist the Authority with the
development of the affordable homeownership units in Phase III of the Valencia Grove
development.
SECTION 3: RFP SCHEDULE
The RFP process will adhere to the following timeline (all times Pacific):
RFP Issue Date: April 28, 2026
Pre-proposal Conference: May 14, 2026 @ 1-2PM (link on cover page)
Please RSVP to procurement@hacsb.com by
May 7th for attendance
Deadline for Written Questions: May 28, 2026 @ 2PM
Answers to Written Questions: June 10, 2026
Proposals Due Date: June 24, 2026 @ 2PM
Committee Evaluation (Including Interviews): June/July 2026
Notice of Award: July/August 2026
HACSB Board Approval of Award: September/October 2026
Questions regarding the contents of this RFP must be submitted via PlanetBids or before time and date and
directed to the RFP Contact listed as the RFP Contact. All questions submitted will be answered and posted
on HACSB's website as an addendum.
Proposals and questions will not be accepted by e-mail or facsimile. All proposals must be
completed and uploaded to the PlanetBids website.
Late proposals will not be considered.
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SECTION 4: CHANGES TO RFP
HACSB reserves the right to change this RFP. Any changes will occur via a written addendum
posted at the following web address: PlanetBids Vendor Portal
SECTION 5: DEVELOPER SCOPE OF SERVICE
1. Proposed Developer Responsibilities
Developer and HACSB would each have certain rights and obligations relating to the development
and financing of the Project which would be detailed in a contract with the selected developer.
Such rights and obligations would include, but not be limited to, construction and development
obligations, and ownership and approval rights. Developer and HACSB would work cooperatively
and collaboratively on the day-to-day development efforts. Developer would use their best efforts
to secure required financing, in collaboration with HACSB.
Developer acknowledges and agrees that Developer would perform, or cause to be performed,
the following:
(a) Lead the effort to engage and coordinate the work of consultants including but not limited to
civil engineer, architect, MEP, landscape, and structural engineer.
(b) Prepare and monitor budgets for the pre-development costs and manage costs to be within
any project budget.
(c) Arrange for all required environmental testing studies and engineering surveys.
(d) Assist HACSB with all federal and state environmental review requirements, including all
requirements imposed by HUD or San Bernardino County, which duties and obligations may
be specified in a separate agreement between the Parties.
(e) Develop a financing plan for the Project and secure financing for the project, including
preparing all applications and required submissions for government and private financing.
(f) Apply for zoning variances entitlements, permits, approvals, certificates of occupancy, or
equivalent documents for the Project.
(g) Assist HACSB with any submissions to HUD.
(h) Establish appropriate administrative and financial controls for the Project's design and
development through the establishment of scopes of work and contracts with consultants.
(i) Carry out pre-construction activities, including design, engineering, and construction for the
Project.
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(j) Monitor progress of construction and change orders and report variances between actual and
budgeted costs.
(k) Obtain necessary warranties of compliance with plans and specifications from architects and
general contractors for the Project.
(l) Coordinate and manage property sales, and repairs under builder home warranty.
(m) Provide construction completion guarantee, builder home warranty, operating deficit
guarantee, repurchase guarantee, recapture guarantee, and any other guarantees as required
by lender/investor.
(n) Provide progress reports as required to HUD and other agencies.
2. HACSB Responsibilities
HACSB will be responsible for general oversight of the Project and carrying out the following:
(a) Cooperatively work with the Developer to complete the Project in a timely and responsible
manner and make available such representatives necessary to review, approve, and execute
the documents, contracts, agreements, leases, operating agreements, designs, construction
documents, and permits that are necessary for the successful completion of the Project.
HACSB staff shall make all critical decisions in a timely manner, unless, at the discretion of
HACSB's Executive Director, HACSB Board of Commissioners (Board) approval is required.
(b) Assign adequate development staff to work closely with Developer.
(c) Use good faith best efforts to assist Developer in securing available state and local funding for
the Project.
(d) Provide timely input on the site plan, budgets, schedule, plans and specifications, and other
significant items, unless, at the discretion of the HACSB's Executive Director, HACSB Board of
Commissioners' approval is required.
(e) As necessary, review and comment on all applications for funding for the Project.
3. Joint Responsibilities
Joint party decision making will be required for certain Project components, including the
following:
(a) Leading the community engagement and outreach process for the Project.
(b) Coordinating all matters required to secure necessary governmental approvals for the Project.
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(c) Solicitation, evaluation, and selection of prospective lenders and investors for the Project
where applicable. The chosen developer shall be responsible for the solicitation of such
parties. HACSB will have approval rights over all solicitations and other similar requests, as
well as over final selection of lender and if applicable for the Project. Selection of such parties
shall be on commercially reasonable terms.
(d) Jointly consenting to the terms and provisions of the Project ownership structure or operating
agreement if applicable, and to the terms and execution of any mortgage loan or other
financing for the Project
(e) Providing regular progress reports, education, and in-person outreach to community
members about the Project and coordinating and managing resident and community
participation, including recommending members for stakeholder groups and conducting
resident outreach, and communicating with local, municipal, and elected officials,
neighborhood groups, local organizations, and individuals with respect to the Project
(f) Jointly approving the pre-development, development, and operating budgets for the Project
(g) Identifying funding for necessary public improvements for the Project
(h) Determining the scope and budget for any necessary environmental remediation for the
Project and incorporating the cost for such remediation into the development budget
4. Cost Proposal
Projected Sales Prices. Please include the following information related to proposed market
rate and affordable sales prices:
* Market Rate Sales Prices:
o 1. Provide the proposed market sales prices for each unit type;
o 2. Include evidence that the market rate sales prices shown in the pro
forma are reasonable and achievable. Please include a preliminary market
study analysis that demonstrates that the sales prices are achievable.
* Affordable Sales Prices:
o 1. Provide the proposed affordable sales prices for each proposed income
level by unit bedroom type.
o 2. Provide the assumptions utilized for the affordable sales price
calculations including:
i. Proposed income limits;
ii. Utility allowances;
iii. HOA, insurance and maintenance allowances; and
iv. The Interest rate assumed for the homebuyer first trust deed
mortgages
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5. Other Business Terms
a. Third Party Contractors
Selection of the general contractor and other third-party contractors is subject to HACSB
approval. Any third-party contractor with an identity of interest with Developer shall require the
prior written approval of HACSB.
b. Property Management; Fees and Agreement
HACSB will work with the chosen developer to implement a long-term property management
plan that works for the project. HACSB expects a Homeowner's Association (HOA) manager to
manage the Project. Such an entity shall receive a base management fee in accordance with any
HUD and applicable requirements, calculated based on gross HOA revenues collected. Bidding
developers shall provide a proposed management structure and fee in their proposals.
c. Predevelopment and Development Costs
Subject to HACSB review and approval of a predevelopment budget, Developer shall be
responsible for 100% of the total approved predevelopment budget, which may be treated as a
predevelopment loan and reimbursed from either financial closings or from home sales proceeds
when available. Developer shall strive to structure predevelopment budgets, costs, and loans to
be supportable from later reimbursements.
d. Developer Fee
The developer fee shall be included as a project cost for the Project in the budget to be approved
by HACSB.
To the extent supported by financing and allowable under HUD and State of California
requirements, and subject to the approval of Project lenders and investors, the developer fee will
be negotiated upon approval of final proposal.
The Developer Fee structure shall be negotiated with the selected developer upon notice of
award.
Milestones for payment of the developer fee splits shall be subject to lender and investor
requirements. The Developer will certify that neither Developer nor any of its affiliates will receive
fees related to the Project in addition to the Developer Fee other than disclosed related third-
party fees such as property management fees, or syndication fees if applicable. Except for the fee
referenced above, Developer shall disclose to HACSB in writing all fees paid to Developer derived
from an entity which has an identity of interest with Developer.
e. Purchase Option and Right of First Refusal
HACSB (directly or through an affiliate) shall have a purchase option and right of first refusal to
acquire the entire property.
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f. Guarantees
The Developer, or an affiliate of Developer with sufficient assets as determined by lender/investor
and first approved by HACSB, shall provide all guarantees required by lenders-including
completion guarantee, operating deficit guarantee, repurchase guarantee, recapture guarantee,
and any other guarantees as required by lender/investor/home buyer-and shall provide HACSB
with one or more completion guarantees covering all construction and demolition activity for the
Project.
g. Equity/Operating Losses
It is recommended that the developer provide a proforma that includes reserves for the project
to cover any potential operating losses. Such a reserve should take into account and consider
stipulations set forth by various lending entities. Please specify as appropriate based on funding
sources suggested in your proposed project proforma.
h. Termination
Terms and conditions for termination shall be contained in the Master Development Agreement
(MDA) for the Project.
i. Ground Lease
HACSB will provide a ground lease to individual developers or partnerships as needed. Ground
lease and other site control items are to be negotiated once a developer is selected and based on
the pro-forma review.
j. Related Interest Disclosure
The Parties shall disclose any transactions that are with related entities, affiliates, or other than
at arm's length for the written approval of the other party, and such disclosures shall be taken
into account with respect to the terms hereof.
In the event an affiliate of, or entity related to Developer submits a response to a Project proposal,
RFP, RFQ, bid, or any other procurement for the Project, the review of all submissions and a
recommendation on the selection of a successful bidder shall be conducted by a third-party
selected by HACSB.
k. Communication with the State & Authorities
The Parties shall work together in all communications with the State of California, San Bernardino
County, and the United States Department of Housing and Urban Development (HUD). HACSB
will lead discussions with the State of California, San Bernardino County, and HUD in partnership
with the Developer on all matters related to the Project. To the extent HACSB, Developer, or their
respective designees take the lead, in consultation with the other, with respect to a particular
issue, the lead Party will include the other in meetings and communications and keep the other
Party informed as to Project-related communication and developments in a timely manner.
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