Increase contracting opportunities with HPD!

This entry is part 9 of 15 in the series City Procurement

How do you increase and build your contracting opportunities on affordable housing projects?

 

Today we’ll explain how to achieve these goals through MBE & WBE Build Up, a program promoted by NYC’s Housing Preservation & Development (HPD)  & Housing Development Corporation (HDC).

 

How is this program helpful to you?

 

It requires developers/borrowers to spend at least a quarter of HPD/HDC-supported costs on certified MBEs & WBEs throughout the design and construction of the projects. Meaning that all payments – no matter funding source – will need to go to certified MBEs & WBEs.

 

Developers/borrowers need you in order to comply with these requirements.  

 

All eligible projects – those that HPD and HDC contribute $2MM or more towards – must adhere to this program’s requirements.

 

Scroll down to read all details!

 

 

What are the key takeaways to know beforehand?

 

Developers and GCs identifying certified MBE and WBE contractors or professional service providers will seek them out in agency directories (a.k.a: all of the places where they could find you). MAKE SURE YOUR NAISC CODES ARE ACCURATE, this is literally how they find you. 

 

 

There’s a process to request a Goal Reduction before closing Construction Loan. Once the budget is finalized, a developer/borrower may submit the appropriate Goal Reduction Request Form to HPD staff for consideration.

 

  • Requests must be received two weeks before the construction loan closing  
  • Post-construction loan closing, a developer/borrower may also submit a Goal Modification Request if applicable (click to see all the details here on page 11
  • If there are any difficulties in meeting goals during construction, developers/borrowers  may request a goal reduction by submitting a During Construction M/WBE Goal Modification Request Form (also on page 11) which requires a demonstration of good faith efforts
  • Good faith efforts: Developer/borrower must show evidence that developer, prime contractors, and/or subcontractors made timely written requests for assistance to NYC’s DSBS; describe how recommendations made by DSBS were acted upon; and an explanation of why action on such recommendations didn’t lead to the participation levels of MBEs and WBEs.

 

Why is this important to know?

 

The better you understand how Developers and GCs/CMs look to find Contractors to help them meet their goals, the more likely you will be in the right place when they are looking for you. There is a system in place, understanding how it works is the first step in positioning yourself to be able to bid on these projects. 

 

What else can you do? 

 

  1. Make sure you are certified to do business with the City, read our blog post here!
  2. Make sure you’ve submitted your paperwork to as many of the agencies above, using the correct codes.
  3. Schedule a meeting with us to discuss how we can help you prepare your business for larger projects.

 

Want to learn even more? Watch and/or listen to Constructing a Business: Available on Youtube, Spotify and/or Anchor platforms.

Series Navigation<< Grow your business with SCA Mentor Programs!Get the most from HPD Build-Out Program! >>

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