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Paradise Apartments

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1. Are we able to get site plans?

Tax maps are available online through Madison County Tax Assessor's Office.

PPIN# - 41569 More...

2. Are there any zoning issues with the property?

None that we are aware of.

3. Will HUD consider returning to project based Section 8 housing?

No.

4. Is the management company that is currently in place required to stay?

No.

5. Are there any utility issues with the property?

None that we are aware of.

6. Does the property have any asbestos problems?

The HUD repair requirements do mention asbestos as it relates to vinyl flooring. Refer to the Draft contract of sale for more information. Draft Contract of Sale

7. Does the property have any lead based paint problems?

Do not know.

8. What is the age of the property?

Approximately 25 years old.

9. Do the roofs of the current buildings have any known damage from the storms?

No inspection has occured to determine that.

10. Is each unit separately metered for utilities?

Yes.

11. Is there a certain format the requested proposals should be put in?

There is no set format. Emailed proposals are acceptable.

12. Do we need to reveal/prove our funding source in the proposals?

It is strongly recommended to show your financial capability while not required to absolutely have your funding source secured. Further investigation of the financials would happen at a later date.

13. How long will it take for the city to define it’s finalists?

It is our desire to evaluate them as they are received and determine a course of action based on the quality of the proposals.

14. Who will be on the committee that chooses the winning proposal?

Taylor Edge - Exec Asst to Mayor
Councilman Tim Holcombe
Councilman Tim Cowles
Councilman Bill Holtzclaw
Cody Phillips - Director of Building
Lillie Causey - Director of Finance

15. What are the projected taxes on the property after rehab?

The taxes are based on the value of the property after rehab. As an example, a $1,000,000 property would cost $11,500 in property taxes.

16. Since all previous tenants were section 8 tenants, how will they be able to afford to return?

All relocated residents were issued Housing Vouchers by Huntsville Housing Authority.

17. Will give the relocated tenants new vouchers for whatever the new rent amount will be?

All relocated residents were issued Housing Vouchers. There is no need to get new vouchers. The value of the Housing Voucher is established by what the Huntsville Housing Authority has established as its Payment Standard. The residents would have to pay the difference between the Payment Standard and the rent established by the new owners in accordance with requirements set forth as conditions of the sale/purchase of Paradise between HUD and the City of Madison.

18. What is your definition of maintaining Paradise as affordable housing?

Current market rates for the area are $635 for 3 bedroom units and $500 for 2 bedroom units.

Huntsville Housing Authority's Payment Standard for Housing Vouchers is $910 for a 3 bedroom and $665 for a 2 bedroom.

HUD's formula for calculating "affordable" housing is (Average Median Income of the area x 80%) x 30%. Average Median Income for this area is approximately $67,500.

19. Do any of the units have mold?

Yes. 4 units currently have mold present.

20. Section 5.e. of the Draft Contract of Sale states "Purchaser shall have 21 days from the date of execution of this contract ...". What is the date of execution?

The City will give the buyer of the property at least 21 days from the signing of the contract between the City and the buyer to address the requirements of that clause.

21. Would it be possible to receive copies of the documents referenced in the Cost Estimate Remarks section of HUD's Post-Closing Repairs Requirements?

The City has given you all we have, and HUD won’t give us this information. If you need to do other inspections or investigations, we’ll permit that.

22. Has HUD commissioned or have copies of any Phase I Environmental Assessment or any other environmental testing?

HUD has indicated they have no environmental assessments. City of Madison has done no environmental testing. We have nothing aside from what we have provided.

23. If during the course of performing due diligence during the 60 day closing period, the purchaser identifies reasons not to proceed, will the City allow the contract to be terminate?

Under the terms of the contract of sale, closing must occur within 60 days from date of execution. The City of Madison would like all prospective buyers to do as much due diligence as possible now, including feasibility studies. We would expect the closing to occur within the 60 days from the date of execution, and really cannot agree to other cancellation provisions. That being said, we want the project to be successful, so the City of Madison will consider all circumstances and intends to act reasonably, with all prospective bidders.

24. Is a staged completion allowed?

As long as the completed project falls within the timeline identified in the redevelopment plan, a staged completion would be considered.

25. Do you have any information regarding the utility bills?

In February of 2009, the water and sewer bill was ~$1300.

26. Will these apartments need to be brought up to the current building and fire code, i.e. sprinkler systems or additional water pipes to support addtional fire hydrants?

The code does not require the entire building or buildings to be brought up to our current 2003 International Building Code however the repairs actually performed must meet the current adopted code. Further, alterations cannot create a code violation under the current adopted code as a result of the alteration.

While we are not requiring sprinkler systems, the inclusion of such systems would be evaluated favorably.

27. Rider 3 states that “All units must be maintained as affordable.” This conflicts with the City’s statement that 36 units must be maintained as affordable housing. How many units is it?

are negotiating with HUD and have verbal agreement that 36 will be the number. We will amend our contract with HUD before we finalize it to reflect that.

28. 2. Can we receive a list of incomes of the former tenants granted First Right of Refusal?

2. In this situation, affordable rent is calculated by HUD using Average Median Income for the metro area; not the actual income of the tenant. For this property, “affordable” rent using this calculation is higher than the market rate rents in the area. The tenants that are allowed to reapply for admission back into the property would then have to pay the rent charged by the new owner not what they were paying before.