TO: CRA Board of Commissioners
FROM: Christine Tibbs, Assistant Director
THROUGH: Renée A. Jadusingh, Esq., Executive Director
DATE: July 23, 2026
Title
DISCUSSION AND DIRECTION REGARDING TO THE REQUEST FOR PROPOSALS FOR THE DISPOSITION OF A CRA-OWNED VACANT LOT FOR THE DEVELOPMENT OF AFFORDABLE/WORKFORCE HOUSING - 216 NW 8TH AVENUE
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Recommended Action:
Recommendation
1. Update and discuss the previously issued Request for Proposals for the disposition of a CRA-owned vacant lot located at 216 NW 8th Avenue for the development of affordable/workforce housing;
AND
2. Provide Board direction for the language within the Requests for Proposal to be issued for the disposition of 216 NW 8th Avenue for development of affordable/workforce housing.
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Background:
On January 26, 2026, the Request for Proposals (RFP) CRA No. 2026-02 for the disposition of a Delray Beach Community Redevelopment Agency (CRA) owned vacant lot for the development of affordable/workforce housing was issued with the purpose of seeking qualified not-for-profit entities for the purchase and development of one (1) CRA-owned vacant lot property located at 216 NW 8th Avenue (Subject Property) for the purpose of developing and constructing affordable/workforce housing to provide for-sale single-family housing that is restricted on a long-term basis for affordable/workforce housing. The Subject Property is a non-conforming lot size with an approximate lot width of 40 feet and lot depth of 135 feet. An unpaved alley abuts the west side of the Subject Property at the rear.
The RFP had an initial Proposal Submission Due Date of March 12, 2026.
On March 3, 2026, CRA staff issued Addendum #1 addressing timely received questions. The Addendum also extended the Proposals Submission Deadline to March 31, 2026. On March 31, 2026, no proposals were received by 4:00PM deadline.
At the April 28, 2026, CRA Board meeting, the CRA Board cancelled RFP 2026-02 as a result of having received no Proposals. After which, CRA Staff briefly discussed the potential development options for the Subject Property: 1) Re-issuing a similar RFP for the disposition of the Subject Property for the development of affordable/workforce housing; or 2) Entering into an agreement with one (1) of the architectural firms in the CRA’s continuing consulting services pool to develop design and construction plans for a single-family home and then issuing a future Invitation to Bid to construct the home. Prior to making a decision related to the development path for the Subject Property, CRA Staff suggested coordinating a meeting with representatives from the Delray Community Land Trust, the Delray Beach Housing Authority, Habitat for Humanity for Greater Palm Beach County and the Delray Beach Community Development Corporation (collectively referred to as Non-Profit Partners) to gather their feedback regarding the issued RFP. Following that meeting CRA Staff would present the feedback collected to the CRA Board.
On May 12, 2026, CRA Staff met with the Non-Profit Partners and discussed the issued RFP and the Subject Property. The feedback received from that meeting is summarized below.
Request for Proposals
Proposer’s Financial Information:
One Non-Profit Partner discussed the requirements related to the Proposer’s Financial Information and requested the CRA consider revising the requirements.
The issued RFP required that the Proposer provide:
• Immediate past three years of audited financial statements
• Current fiscal year financial statements (which includes balance sheet and profit and loss statement)
• Projected one-year income statement for the current fiscal year for the Proposer (and its parent entity if it is a subsidiary).
• The Proposer must provide tax returns (Form 990) for the immediate past three years.
During the discussion with the Non-Profit Partners, CRA Staff discussed the current RFP requirements and the prior RFP requirements. In 2024, the CRA revised the Financial Information requirements to require non-profit Proposers to submit their immediate past three years of audited financial statements and tax returns. Prior to 2024, the CRA had required non-profit Proposers to submit the immediate past year’s audited financial statement and tax return.
Should the CRA Board consider revising the Financial Information requirements for non-profit Proposers, CRA Staff will revise the language in future RFPs as directed by the CRA Board.
Financial Assistance and Subsidies:
The Non-Profit Partners emphasized the increasing costs of design and construction, which in turn, increases the sales price of a home to the end buyer. Specifically, unplanned architectural design expenses for any re-design as a result of a requirement from the City determined during the permitting process, or other unplanned pre-construction work to prepare the property for construction. The Non-Profit Partners requested the ability to request financial assistance and/or subsidies from the CRA to assist with the development and construction of the homes, or to assist the end buyers with purchasing the homes.
The issued RFP provided the following Financial Assistance that would cover certain eligible costs that would be paid for by the CRA and not incurred by the non-profit developer or the end homebuyer:
1. Architectural & Engineering Services
2. Development and Construction Permit Fees, including Impact Fees
3. Construction Financing
4. Roadway, Alley, Sidewalk, Infrastructure Construction as required by the City of Delray Beach
Additionally, the issued RFP also provided Financial Subsidies for end homebuyers to assist with the cost to purchase the home.
During the discussion with the Non-Partners, CRA Staff explained that the CRA understands the pressure of increasing design and construction costs, and the desire of all non-profit housing developers to keep the sales prices of affordable/workforce housing homes attainable. For that reason, CRA Staff explained the significant revision contained within the issued RFP that allows for Financial Assistance and Subsidies requests from non-profit Proposers. Prior issued RFPs had not allowed for any Financial Assistance of Subsidies requests from non-profit Proposers.
Going forward, RFPs issued for the disposition of CRA-owned land for the development of affordable/workforce housing will continue to allow requests for Financial Assistance from the CRA to help non-profit developers cover certain eligible design and construction costs, as listed above, and requests for Financial Subsidies from the CRA to assist homebuyers with the costs to purchase the home.
Performance and Payment Bond:
The Non-Profit Partners discussed the requirement related to the Performance and Payment Bond and requested the CRA consider alternative forms assurance. Specifically, the cost to provide the Performance and Payment Bond was felt to be burdensome.
During the discussion, CRA Staff explained the need for the Performance and Payment Bond. In lieu of alternative forms of assurance, CRA Staff would like the CRA Board to consider allowing the cost of the Performance and Payment Bond to be included in the list of eligible costs a non-profit Proposer could request Financial Assistance from the CRA.
Should the CRA Board consider revising the eligible costs for which Financial Assistance could be requested by non-profit Proposers, CRA Staff will revise the language in future RFPs as directed by the CRA Board.
Additional Comments Related to the RFP:
The Non-Profit Partners expressed a desire for flexibility in the development process, including the ability to substitute a home design and floor plan and the ability to allow for amendments to the Purchase and Sale Agreement due to unforeseen development conditions.
During the discussion, CRA Staff explained that once a Purchase and Sale Agreement has been executed by the non-profit developer and the CRA, the expectation is that the home design and floor plan, as previously submitted by the non-profit developer and accepted by the CRA, is the one that will be built. In certain limited circumstances, such as unplanned architectural design changes due to requirements from the City, unplanned pre-construction work to prepare the property for construction, or unplanned need to hire a new general contractor, substitutions or revisions to the Purchase and Sale Agreement would be considered. Moreover, any substitution or request to amend a Purchase and Sale Agreement would need to be brought before the CRA Board for approval.
Lastly, the Non-Profit Partners discusses the CRA issuing RFPs with multiple properties. During the discussion, CRA Staff explained that prior RFPs had included multiple CRA-owned properties. The final determination as to which CRA-owned properties are included together within an RFP for the disposition for the development of workforce/affordable housing is dependent on whether a property is ready for development and the property’s location.
Site Constraints
The Subject Property is a non-conforming lot size with an approximate lot width of 40 feet and lot depth of 135 feet. The Subject Property fronts NW 8th Avenue and has an unpaved alley at the rear.
The Non-Profit Partners discussed the challenges related to development and construction of affordable/workforce housing in general, and then developing the same on non-conforming properties. In general, the feedback received related to costs preparing the properties for construction: clearing and grading the properties, removing trees and/or fences from the properties, and obtaining property surveys. More specific to non-conforming , the Non-Profit Partners discussed the size constraint of the non-conforming properties, especially after setbacks and any required City dedications are taken into account, how the size constraint and additional utility and infrastructure requirements affect the development and construction costs, and then in turn, how the same affects the sales price of the home.
During the discussion CRA Staff explained that the Subject Property is representative of most of the CRA-owned infill properties; they are mostly vacant, non-conforming properties that have never had a structure constructed on them. Similar issues experienced with the Subject Property as relayed by the Non-Profit Partners - setbacks, dedications, utility connections, and other infrastructure that would need to be constructed - would also affect all the vacant CRA-owned infill properties that would be used for the development of affordable/workforce housing.
In understanding the pressure of increasing design and construction costs, and the desire of all non-profit housing developers to keep the sales prices of affordable/workforce housing homes attainable, CRA Staff would like the CRA Board to consider allowing certain pre-construction costs, such as property surveys, and property clearing and grading, to be included in the list of eligible costs a non-profit Proposer could request Financial Assistance from the CRA. Alternatively, the CRA could also preform this work on a case by case basis.
Should the CRA Board consider revising the eligible costs for which Financial Assistance could be requested by non-profit Proposers, CRA Staff will revise the language in future RFPs as directed by the CRA Board.
Request for Proposals - Re-Issue
Following the discussion with the Non-Profit Partners, CRA Staff has a better understanding of the concerns the Non-Profit Partners had related to the issued RFP. Overall, the Non-Profit Partners cited limited financial resources and concerns about maintaining long-term affordability amid rising construction costs. They noted that many of these challenges are being experienced by non-profit housing developers throughout the county and emphasized the need for continued collaboration with the CRA in order to preserve and expand affordable housing opportunities.
With that end goal in mind, CRA Staff recommends issuing a Request for Proposals for the disposition of 216 NW 8th Avenue for the development of affordable/workforce housing.
Additionally, CRA Staff is requesting the CRA Board discuss and provide direction as to the following language within the Requests for Proposal:
1. Revising the Financial Information Requirements
2. Revising the eligible costs that can be included within any request for Financial Assistance to include:
a. Performance and Payment Bond
b. Pre-construction activities: property surveys, property clearing and grading
Following Board direction as to the above items, CRA Staff will finalize the Requests for Proposal for the disposition of the CRA-owned vacant lot located at 216 NW 8th Avenue for the development of affordable/workforce housing. The finalized Requests for Proposal will be scheduled for a future CRA Board meeting for review and authorization for issuance.
Attachment(s): Exhibit A - Location Map; Exhibit B - Previous RFP 2026-02
CRA Attorney Review:
N/A
Funding Source/Financial Impact:
N/A
Overall need within the Community Redevelopment Area from Delray Beach CRA Redevelopment Plan:
Removal of Slum and Blight
Land Use
Economic Development
Affordable Housing
Downtown Housing
Infrastructure
Recreation and Cultural Facilities