MSHDA BLIGHT ELIMINATION PROGRAM

 2017 NOTICE OF FUNDING AVAILABILITY

The Michigan State Housing Development Authority (MSHDA) is seeking proposals in support of targeted demolition activity within local units of governments across Michigan with the goal of initiating or triggering private investment and development; supporting current investment and development, promoting public safety, and/or stabilizing and increasing the property values of the project area.  

Award Limit: 
• For communities that have a population of 50,000 or less, the minimum award is $25,000, and the maximum award is $250,000;
• For communities with a population of over 50,000, the minimum award is $50,000 and the maximum is $500,000; and
• The maximum amount of grant funds allowed per residential structure is $25,000.
• The maximum amount of grant funds allowed per commercial structure is $100,000.

Eligible Applicants: Local units of government (counties, cities, townships, or villages) and local Land Banks.
 
Eligible Properties: 
• Must be vacant at the time of acquisition;
• Must be blighted, which is defined as meeting any of the following criteria:
o Properties have been either deemed a public nuisance according to local code or ordinance or deemed a nuisance because of age, physical condition, or use;
o Properties are a fire hazard or otherwise dangerous to the safety of persons or property; or
o Properties have had utilities, plumbing, heating, or sewage disconnected, destroyed, removed or rendered ineffective so that the property is unable to meet state and local building code.
• For residential demolition, the Grantee must provide documentation that last use was as a single-family or multifamily residential 1-4 unit structure;
• For commercial demolition, property must be in or adjacent to a residential area.  Commercial demolition must be part of a development project with funding commitments, and must include a local match of at least 10%.
• Must be publicly-owned.

Ineligible Projects: 
• Demolition of structures with known or suspected environmental contamination (e.g., sites with underground storage tanks, structures previously housing dry cleaning establishments, etc.), not including lead or asbestos;
• Demolition of industrial property;
• Property acquisition or redevelopment
• Demolition of properties that are listed in the National Register of Historic Places (either individually or as part of a historic district) or those found within local historic districts designated under 1970 PA 169 for which the State Historic Preservation Office (SHPO) and/or the local historic district commission has not already approved demolition.

Allowable Costs:  Only reasonable and necessary costs that are directly related to demolition and are supported by the solicitation of multiple bids are eligible.   Eligible demolition-related activities include but are not limited to:

• Utility disconnect fees;
• Demolition, including labor, trucks and fuel;
• Permits;
• Abatement of lead and asbestos;
• Dangerous Building Inspections;
• Environmental Survey and Compliance Inspection;
• Dirt cost for backfill;
• Greening costs to include dirt, grade, seed, and sidewalk replacement;
• Landfill costs for waste;
• Pre-demolition maintenance costs, including trash elimination and mowing (maximum per property $750 – these costs are considered part of the 5% project administration allowable costs); and
• Project Administration:  Maximum of 5% of grant.

Application Evaluation and Scoring:  Proposals will be evaluated based on their anticipated impact in initiating or triggering private investment and development; supporting current investment and development; promoting public safety; stabilizing and increasing the property values of the project area; and capacity of the applicant to engage in the project activity.  Applications will be scored on a 30-point scale, with a total of 5 possible points available in each of below categories. 

Five points will be scored where the application demonstrates that the project meets the criterion exceptionally well, four points will be scored where the project serves the goal to a high degree, three points will be scored where the project serves the stated goal, two points will be scored where the project marginally serves the goal, and one point will be scored where the project does not meet the stated goal.

Category 1 – New private investment and development:  The project will initiate or trigger private investment and development.  This could be documented by written commitments for investment and/or development to commence after the demolition.  A targeted demolition approach will more likely score higher than a scattered demolition approach.

Category 2 – Current private investment and development:  The project will support current private investment and development.  This could be documented evidence of current private investment and/or development adjacent or close to the proposed demolition, and that is part of an overall investment and development strategy.  Matching funds for the demolition do NOT count in this category. Only funds for which evidence of a written commitment is included in the proposal will be counted towards scoring.  Projects with the highest amount of other investment and development funding in the project will score highest in this category.  The scale for scoring the percentage of other dollars invested will be as follows:

• 81% and Up (5 points)
• 61% - 80%   (4 points)
• 41% - 60%   (3 points)
• 21% - 40%   (2 points)
•   1% - 20%   (1 point)

Category 3 – Matching Funds:  There are matching funds being used for the demolition.  Projects with the highest amount of matching funds in the demolition will score highest in this category.  Only funds for which evidence of a written commitment is included in proposal will be counted towards scoring.  The scale for scoring the percentage of matching funds for demolition will be as follows:

• 81% and Up (5 points)
• 61% - 80%   (4 points)
• 41% - 60%   (3 points)
• 21% - 40%   (2 points)
•   1% - 20%   (1 point)

Category 4 – Promoting Public Safety:  The project promotes public safety. This could be documented by a map showing the proposed demolition will eliminate unsafe structures in or adjacent to a school, hospital, business district, public park, or core neighborhood institution.  Police reports documenting evidence of vandalism, criminal behavior, trash, vermin, and other dangers will score highest in this category.

Category 5 - Property Value Stabilization: The project will stabilize or increase property values in the project area.  A targeted residential demolition approach will score higher in this category than a scattered residential demolition approach.  Documentation could include evidence of lower property values in the project area compared to other neighborhoods with similar household incomes and housing types but without blight.

Category 6 – Capacity:  The applicant has the capacity to successful carry out the project activity.  For example, applicants who have successfully carried out demolition activities previously will score higher than those without any prior experience.

APPLICATION SUBMISSION REQUIREMENTS

A complete application must include all of the following information:

Project Applicant:
Name, Address, Phone
Point of Contact Name, Address, Phone, Email

Project Summary: Provide a brief narrative including a description of the project area, the proposed demolitions, and the amount requested.

Detailed Project Description:

1. Description of local project areas within or immediately adjacent to the applicant’s jurisdictional limits including street boundaries and neighborhood description;

2. Rationale for the selection which includes information on how the proposed project accomplishes one or more of the following:

a. Will initiate or trigger new private investment and development;
b. Supports current private investment and development;
c. Promotes public safety;
d. Will stabilize or increase property values in the project area.

3. A completed site-specific Field Contamination Checklist for each property that includes the site location/address, the property owner, a map, and a condition assessment (including any known environmental problems).

4. Documentation that each structure meets the Eligible Properties criteria outlined earlier in this NOFA.

5. Land reuse: describe the plan for restoring the land after demolition and the planned post-demolition use of the land.

6. A description of how this proposal is consistent with a local master, strategic or blight elimination plan.

7. Identification of any contractors that will be used in carrying out the demolition, and description of procurement process used to select contractors (all projects must be competitively bid). Contractors should be selected in keeping with the following minimum eligibility criteria:

e. Evidence of financial stability to include review financial statements and previous two years corporate tax returns.  Review of these items should ensure that the contractor has sufficient capital to complete the assigned project;

f. State of Michigan’s (SOM)  residential builder’s license and/or maintenance and alterations contractor with a house wrecking designation, asbestos survey/abatement  in compliance with MIOSHA (Michigan Occupational Safety & Health Administration);

g. Evidence of Insurance- Commercial general liability coverage of no less than $2,000,000 workers compensation; and employer’s liability coverage of no less than $500,000;

h. Automobile liability with limits not less than $1,000,000 per occurrence. Professional liability with coverage no less than $1,000,000;

i. Current Insurance Certificates must be on file in grantees  office at all times;

j. Evidence of legal standing.  Contractors must be legally organized and in good standing with the SOM as evidenced by a certified copy of the contractor's Articles of Incorporation and Good Standing Certificate (or comparable documentation if the Contractor is not a corporation), or a Certificate of Authority to Transact Business, if the contractor is a foreign corporation (or entity). All such certificates shall be dated within 30 days of submission and issued by State of Michigan’s Department of Licensing and Regulatory Affairs (LARA).

k. A complete list of all the contractors’ board members/officers;

l. Evidence of Experience:  Applicant  must verify that all contractors have a minimum of five (5) years of proven experience providing professional licensed demolition services of similar scope/scale;

m. Surety/Performance Bond- Contractors must secure a performance bond in an amount equal to one hundred percent (100%) of the total contract amounts.  Bonds must a) be issued by a bona fide company authorized to do business in the SOM and b) comply with state regulations;

n. Applicants must ensure that there is no State or Federal debarment/suspension, conflict of interest or gross program violations with all contractors;

o. State and local licenses and permits for all workers - it is the applicant’s responsibility to ensure that any and all applicable federal, state and local laws, requirements and ordinances are met including MIOSHA designations, certification, operator license and other requirements. Contractors selected must provide to grantee evidence and ongoing certification that any sub-contractors are also in compliance with all applicable federal, state and local regulations and ordinances.

8. Communities proposing demolition outside of their limits must submit documentation showing that local officials agree that demolition in the adjacent community is critical to support the redevelopment or stabilization within the core community and contained within the strategic plan.

Projected timeframes: Estimated work start and finish dates, and other project timeframes.

Budget: Applicants must provide a detailed project budget estimate and budget narrative including other funding sources (if applicable).

Evidence of Local Support: Attach evidence of local support for the proposed project.

Evidence of Capacity:  Description of the applicant’s demolition or development project management experience including a description of at least two projects completed or under way, number of units demolished, and any other indicators showing capacity to administer funding for demolition.

APPLICATION PROCESS/DEADLINES

Applications must be submitted by mail through USPS, or via FED EX or UPS, or hand-delivered to the Lansing MSHDA office to the following:

Jess Sobel
Grants Manager
MSHDA
735 E. Michigan Avenue
P. O. Box 30044
Lansing, MI 48909
517-241-0453


Applications must be received on or before 5:00 PM on June 21, 2017.

Questions regarding this NOFA may be submitted in writing on or before 5:00 on June 12, 2017 to:  Jess Sobel at 517-241-0453 or sobelj@michigan.gov

Responses to questions will be posted to www.michigan.gov/mshda on or before June 15th, 2017.  

Responses to Blight Questions