Workforce Housing Developer

qualified and experienced residential housing development teams interested in the design, finance, construction, operation and continued maintenance and compliance of long-term affordable workforce housing for those residents making modest incomes such as first responders, teachers, and the workforce employed by many of our local community businesses. The City has identified a City owned tract of land which consists of approximately 22.51 acres located along the southside of the heavily traveled Bee Cave Parkway and west of Skaggs Drive (the “Project Site”). The Project Site is located within walkable proximity to retail, restaurants, and regional shopping centers. The Project Site is adjacent to pedestrian paths, a large fitness/sports complex, and recreational parks. The development of workforce housing is technical and may require specialized financing that could require certain mandated timelines and certain on-going compliance monitoring; therefore, the City is soliciting

proposals through this Request for Proposal (“RFP”) from housing developers that demonstrate to the City, in its sole and absolute discretion, an understanding of the Bee Cave community and that have a proven track record of developing and operating high-quality housing. Qualified Respondents (“Qualified Respondent”) should provide satisfactory evidence of successful experience in developing and managing affordable mixed-income housing and maintaining affordability commitments. The purpose of this RFP is to invite the creativity of the development community to meet the objectives outlined herein and encourage Qualified Respondents to bring all viable ideas to the City. The City recognizes the need for varied housing options to meet the needs of the community and acknowledges the importance of collaborating with a Qualified Respondent to achieve an accelerated development cycle realized by the private sector’s expertise and resources. The Project Site is owned by the City and it is the responsibility of the City to ensure the most beneficial, efficient and expedited process in its utilization. While fee simple acquisition of the Project Site is preferred for the purposes of providing workforce housing, the City understands that there are common practices in the development community in relation to City owned property that leverages the best outcomes of affordability, maximizes the number of affordable units and returns the greatest benefits to the City. The City may consider such options included within selected proposals. Qualified Respondents must consider to the extent of law or in equity, that the City must adhere to a standard of reasonable care when considering alternative land control and utilization within capital structures. Based on proposals other than fee simple acquisition, the City may engage outside advisors and/or counsel familiar with such structures to ensure the highest duty of care in the Project Site utilization. Such costs for the engagement of outside professionals regarding such a structure may be required to be included in the development budget. II. Project Overview and Objectives: A. OVERVIEW Bee Cave is located in the hills of Travis County, Texas, approximately 15 miles west of Austin, and is known for its natural beauty; superior school district; low property taxes; and shopping, dining, and outdoor recreational activities. The City’s population, including the extra territorial jurisdiction (ETJ) is approximately 15,400 as of March 2023 and continues to grow as the greater Austin economy has boomed over the past decade. Bee Cave is experiencing an affordable housing crisis, much like the rest of the United States and particularly Texas1. The explosive population growth over the past decade in Central Texas paired with skyrocketing home values and limited new supply of homes has created an unaffordable environment for many who work in Bee Cave. According to Zillow, the typical home value in Bee Cave is $901,135 resulting in a mortgage payment of $5,4312. To support this payment amount, a household must earn $260,0003 annually. The median rent for a three bedroom apartment is $2,840. To support this rental payment a household must earn approximately $140,000 annually. The average first responder makes between $35,000 and $55,000 annually, a teacher’s salary is approximately $51,816, and retail workers range from $15,080 to $32,240 annually. As a result of the current options for housing, many of these types of residents must pay more than 30% of their annual gross income on housing and therefore must seek housing in communities located further and further away from Bee Cave. A lack of affordable workforce housing impacts the quality of life for Bee Cave residents as evidenced through longer wait times for services, businesses struggling to fill labor shortages causing reduced business hours and business clos