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APPROACH

Scope

TASK 1: PROJECT INITIATION,
DEMOGRAPHIC & ECONOMIC DATA
COLLECTION

In this task, RKG will work with the City to schedule

a kick-off meeting to initiate the project and introduce
us to the community with a tour and set of stakeholder
interviews. RKG will also begin initial data collection
and analysis on both the demographic and economic
baseline conditions.

Task 1.1 Kick-Off and Background
Materials

Task 1.4.1. Data Needs Identification and
Collection

Task 1.1.1 will address the data collection aspect of the
project. RKG will develop a list of public information
to be conveyed by the City to RKG prior to the kickoff
meeting. RKG will require a wide range of data and
information from the City to adequately complete this
analysis. Any existing databases will need to be made
directly accessible to us. These include, but are not
limited to:

» The City’s GIS databases;
» The City’s property assessment data;

» Any data collected about the residential for sale
and for rent markets (i.e. rent studies);

» Market data from City departments dealing with
housing;

» All ordinance and policy guidelines related to
housing;

» Housing permit data;
» Code enforcement data;

» Inventory of city-owned land, with particular
emphasis on vacant, developable properties;

» Inventory data of all existing and proposed
developments within the City; and

» Previous financial feasibility and housing market
studies done.

Task 1.1.2 Review Background Materials,
Documents, and Information

Before beginning any formal work tasks, RKG will
review relevant materials, planning documents,
databases, maps, and any other information relevant

to the project. A thorough review of such information
will establish a research context from which to begin
the project and will provide RKG with a background
perspective on the City and its past and present housing
market climate.

Task 1.1.3 Project Kickoff Meeting

An initial kick-off meeting will be held with City staff

to review and discuss key elements of the project. The
kick-off meeting is an important opportunity for RKG

to better understand the relevant issues surrounding the
project, and to come to common agreement regarding
the project’s objectives and to fully understand the City’s
expectations for the final product. Logical points for
discussion at the kick-off meeting include:

» How do housing policies and programs currently
meet (or not meet) the needs of Nashua residents?

» Are there any groups currently not being served?

» What are the City’s short-term and long-term goals
for providing housing assistance in the future?

» What level of public and private investment has
there been for affordable and workforce housing
in recent years (e.g., new development, major
redevelopments, etc.)?

» Do local housing agencies benefit from current
policies and initiatives?

» What roles will the City and its housing
partners play in the implementation of the
recommendations?

» ITs there capacity for-profit and non-profit housing
developers to create a significant number of new or
revitalized restricted housing units?

RKG Associates

After the kick-off discussion, RKG will conduct a tour of
the City and its neighborhoods.

Task 1.4.4 Stakeholder Interviews

During the project initiation meeting/site visit, RKG
will work with the City to set up a series of in-person
interviews with local housing experts. Over the
years, we have learned that the most effective way to
begin to understand a community is through candid
one-on-one interviews with business and property
owners, affordable housing agencies (public and non-
profit), developers (market rate and affordable), major
employers, community leaders, stakeholders, and
citizens. It is important to conduct these interviews

at the beginning of the process to help frame the data
collection efforts and provide local context to tell the
qualitative side of Nashua’s housing story. Interview
topics may include:

» Local and regional residential market trends;

» Recent construction trends and their impact on the
residential market;

» Real estate pricing, occupancy levels and
absorption trends;

» Regional and local business climate;

» Regulatory environment for new development
(e.g., zoning, approval processes, etc.);

» Perspective on unmet affordable housing needs
and gaps in the community;

» Perceived biggest barriers to building modest and
affordable housing;

» Input on the types of incentives and programs that
would lead to largest increases in affordable units;
and

» Potential funding sources and tax incentive
programs.

RKG Associates

APPROACH

Task 1.2 Demographic and Economic Data
Analysis

Task 1.2.1. Demographic Baseline

RKG will collect and analyze demographic data for the
City to better understand how changes in population
and household characteristics are impacting housing
choice and availability. Data collection will include, but
is not limited to, population trends, age composition,
changes in race and ethnicity, educational attainment,
household composition, household income, and
measures of cost-burdening of existing households.
RKG will also review projections for population and
household change over time to use as an input for future
housing demand.

Task 1.2.2. Economic Baseline

Akey component of assessing the housing market and
its affordability is assessing the economic conditions

in the community. Wages can be directly correlated

to housing affordability and cost-burdening, and
understanding the strength and growth of industry
sectors can help predict the housing needs of residents
going forward. RKG will review changes in employment
sectors and wages, and compare those to the cost

of housing in Nashua. RKG will also supplement
quantitative data with interviews with major employers
to understand what needs exist with employees and
how partnerships with local employers could benefit
residents and the City.

APPROACH

TASK 2: Rental Housing Market
Analysis

Task 2.1 Supply-Side Analysis

An analysis of the primary and secondary residential
market conditions is a necessary foundation for a supply
and demand analysis. RKG will conduct an analysis of
the residential real estate supply in the area, including
an inventory and analysis of current renter-occupied
real estate assets. RKG will work with local data
sources, such as the property assessment database, as
well as primary and secondary data (i.e. online rental
listings, interviews with management companies, etc.)
that are collected from previous studies and RKG’s
efforts. The analysis will identify housing availability by
type, pricing, amenities (as appropriate), occupancy, and
location.

RKG will also create a set of rental housing profiles by
product type which will describe general conditions,
locations in the community, average rent rates, average
year of construction, size and scale, etc. These one-page
cut sheets can be used by the City to better understand
the current stock of rental housing, pricing, general
condition, and locations across the community.

Task 2.2 Demand-Side Anaiysis

To complement the supply-side real estate analysis, RKG
will gather information on the current demand for rental
residential housing. RKG will evaluate various demand
indicators, including, but not limited to: existing
demographic and income data, current employment
and wage data, and recent employment growth trends.
This effort will provide a detailed analysis of the relative
demand for rental housing at various income levels.

TASK 3; Owner Occupied Housing
Market Analysis

Task 3.1 Supply-Side Analysis

RKG will conduct an analysis of the residential real
estate supply in the area, including an inventory and
analysis of current owner-occupied real estate assets.
RKG will work with local data sources, such as the
property assessment database, as well as primary and
secondary data (e.g. MLS, interviews with brokers, etc.)
that are collected from previous studies and RKG’s
efforts. The analysis will identify housing availability by
type, pricing, occupancy, sales activity, days on market,
and location,

RKG will also create a set of owner-occupied housing
profiles by product type describing general conditions,
locations in the community, average sale prices, average
year of construction, size and scale, etc. These one-page
cut sheets can be used by the City to understand the
current stack of ownership housing, pricing, general
condition, and locations across the community.

RKG will also use property assessment data to better
understand how the City built out over time and where
older homes may be clustered creating potential for
long-term maintenance issues. We have found in other
studies this information can help target strategies,
funding, and programs to address problem properties
today or issues in the coming years. This might include
lead paint remediation or addressing structural issues.

Task 3.2 Demand-Side Analysis

To complement the supply-side analysis, RKG will
gather information on the current demand for owner-
occupied housing. RKG will evaluate various demand
indicators, including, but not limited to: existing
demographic and income data, current employment
and wage data, and recent employment growth trends.
This effort will provide a detailed analysis of the relative
demand for ownership housing at various income levels.

RKG Associates

In some more recent housing studies, RKG has also
begun looking at homeownership and rental needs
from the perspective of prospective buyers or tenants
and what their needs are based on predominate
household typologies. As we explore the demographic
and household composition data in Nashua, there may
be an opportunity to reframe the housing analysis

from the perspective of current and future residents
and how housing does (or does not) meet their needs.
Through this analytical process, we may find household
typologies that desire different housing types than what
currently exist in the city today.

TASK 4: Gap Analysis

Task 4.1 Market Gap Analysis

RKG will compare the results of the supply and demand
analyses to identify market gaps (demand segments
that are underserved based on available supply)

within the city. The market gap analysis will present
current gaps and projected gaps based on forecasts in
new housing development and changes in demand
from growing/changing population. The gap analysis
will be completed for both rental and owner housing.
The results of this assessment will further shape the
recommendations, as housing demand varies by income
level and age group.

RKG will integrate HUD standards of affordability
into the gap analysis to provide the City with detailed
information on housing gaps at various income levels.
This will include calculations and comparisons of
household incomes to monthly rent costs, as well as
household incomes to mortgage costs for owners.

The resulting gap analysis will inform strategies

and recommendations which will fill those gaps and
encourage housing to meet the needs of current and
future residents.

RKG Associates

APPROACH

Task 4.2 Local Capacity for Housing
Production

As part of the gap analysis task, RKG will conduct
an assessment of local housing organization and City
department capacity. RKG will categorize each entity
by their focus (rental, ownership, affordable, market
rate, mixed-income, etc.), identify programs available
through each entity, and create a gap matrix that

will be used in the formulation of strategies for the
future. We will also review and catalogue housing
finance programs, their level of funding, availability/
competitiveness, and what potential housing barriers
they can help address.

Task 4.3 Rehab Gap Analysis

RKG will work with the City to quantify the universe

of housing units that may be in need of rehabilitation
assistance. This will involve quantifying the number of
housing units in Nashua by year built and by residential
typology to identify older housing units that may need
rehab assistance. Based on the year built, RKG will
assign dollar values for typical rehabilitation requests
such as new roofs, lead abatement, porch repairs, etc.
We will work closely with City staff to better understand
current requests from the program, dollar values, and
assess potential unmet need, This analysis will feed into
the housing strategies and prioritization of the City’s
limited housing dollars.

TASK 5: Barrier Analysis

RKG will complete a barrier analysis that looks at local
zoning, state and local funding programs, and the cost
of bringing new housing into the market to identify
where future policy changes could unlock opportunities
for housing, The funding and development barriers
analysis will be done separately for rental and
ownership housing as different criteria may be used

to determine public subsidies or lending for private
development. In addition to available local data sources,
RKG will supplement with interviews of City staff,
lending institutions, and local developers.

APPROACH

TASK 6: Housing Strategies

Once the analytical, gaps, and barriers components of
the project are completed, RKG will prepare a set of
recommendations to address the issues that surface
during the analysis. Given the City’s historically-low
vacancy rate, part of the recommendations will focus
on housing production and likely feed into future
Master Plan discussions. These recommendations may
come in the form of zoning changes, land disposition,

public-private partnerships, or development subsidies.

We also recognize as the second largest city in

New Hampshire, we are likely to encounter issues
around older housing units, needs for rehabilitation,
and underlying pressures to redevelop. These can
often come at odds with housing affordability and
preservation goals. RKG will work with the City to
identify these issues, where they intersect, and policy/
program strategies to further the housing goals in
Nashua.

Lastly, RKG will address the needs for deed-restricted
affordable housing across Nashua. We will review
the City’s Inclusionary Housing Ordinance to see
how it could be improved and how it can be used
more effectively to leverage units and funding to

seed the Housing Trust Fund. We will also look at
available programs and funding sources the City can
tap into or leverage to partner on affordable housing
developments in the future.

10

TASK 7: Housing Report

The City has laid out requirements for the draft and final
document, which include:

» Executive Summary

» Key Findings

» Methodology

» Glossary of Terms

» Zoning Map

» Reference/Resource Guide
» Acknowledgments

Our report will incorporate many of these elements
with the potential exception of the zoning map. In our
experience, the creation of an updated zoning map can
be time consuming and political with potential impacts
to the Zoning Ordinance itself. RKG can however offer
an annotated map which describes locations across

the City where zoning changes could benefit future
residential development.

At the onset of the project, RKG will discuss the format
and content of the final product with the City to
minimize changes and reorganization at the end of the
project.

RKG Associates

BUDGET

Schedule
TASKS Total Labor Cost (Month)
Task 1 - Project Initiation,
Demographic & Economic Baseline $4,000 June
Task 2 - Rental Housing
Market Analysis $3,500 June - July
Task 3 - Owner Occupied
Housing Market Analysis $3,500 June - July
Task 4- Gap Analysis | $4,000 | July
Task 5 - Barrier Analysis | $3,150 | July
Task 6 - Housing Strategies | $3,500 | August
Task 7 - Housing Report | $3,000 | Aug ~ Sept
TOTAL COST | $24,650 | 4MONTHS

RKG ASSOCIATES
76 Canal Street

Boston, MA 02114
Phone: 617.847.8912
Fax: 617.847.8914
www rkgassociates.com

09.20.2021

To

Sarah Marchant
Community Development
Division Director

City of Nashua, NH

From

Kyle Talente
President

RKG Associates, Inc.

Re

Inclusionary Zoning
Financial Feasibility
Analysis Add-On Services

Request for Quotes Proposal

Ms. Marchant,

On behalf of RKG Associates, we are excited about the prospect of building upon our collective
effort to understand the financial impact of a revamped inclusionary zoning policy by assisting
the City of Nashua in crafting a new policy. RKG Associates understands that time is of the
essence and is ready to commit the resources to ensure the City’s Board of Aldermen are engaged
effectively to understand the impacts of changing the existing inclusionary zoning policy and to
make an informed decision on how to structure the components necessary to make a new more
efficient and effective policy. The following narrative highlights the approach RKG
recommends for the City to consider.

Task 1: Aldermen Engagement

RKG Associates believes this effort will require three workshops with the Board of Aldermen as
part of this process. RKG Associates assumes all workshops will be held through Zoom or
another teleconferencing platform. Those meetings should cover:

=" Workshop #1 — Components of an Inclusionary Zoning Policy (October 5, 2021)

This meeting will provide the Alderman an introduction to the components or regulatory
options that are traditionally part of an inclusionary zoning policy. Topics will include,
but not be limited to, AMI thresholds, percentage requirements for affordable units,
payment in lieu, bonus density, etc. RKG Associates will detail how each component
works, its benefits and challenges, and potential impact on development. This meeting
will focus on understanding the Alderman’s interests/priorities/concerns that will frame
the creation of a draft policy.

«" Workshop #2 — Draft Policy Workshop (October 19, 2021)
This meeting will allow the RKG Team to present the draft inclusionary zoning policy
for the Alderman to consider. The RKG Team will detail the structure and requirements
of this draft policy to gamer support and/or comment from the Alderman on how to
finalize the policy.

" Workshop #3 — Recommended Policy Review (November 2, 2021)
Based on the results of the previous meeting, RKG will revise the inclusionary zoning
policy for final presentation. This meeting will be the final presentation to the Alderman
to garner any final recommendations/changes. RKG anticipates that this meeting will
solidify the Alderman’s position on the policy, allowing RKG to provide a final
recommendation to the City.

Task 2: Draft Policy Creation

The RKG Associates Team will develop new inclusionary zoning policy that reflects the results
of RKG’s prior financial modeling efforts and input from the first Alderman workshop. The
policy will be informed by best practices for inclusionary zoning, regulations that align with the
results of RKG’s financial feasibility model, and policy approaches preferred by the Alderman.

09.20.2021

Request for Quotes Proposal Pg.02

The RKG Associates Team will use an existing policy structure from another community of the
staffs preference (or of the RKG Team’s recommendtation) and modify it to reflect the results
of the initial workshop with the Alderman. This approach will be possible only if the results of
the first workshop are consistent with an existing policy known and accessible to the City staff
and/or RKG Associates.

Task 3: Policy Refinement
RKG Associates will refine the draft inclusionary zoning policy based on the results of workshop
#2 with the Aldermen. RKG will provide City staff the revised policy for review and comment
prior to the final workshop.

Task 4: Inclusionary Zoning Policy Document

RKG Associates will craft an approval-ready policy for submission to City staff and the City’s
legal counsel. This policy will be crafted in accordance with New Hampshire state statues
governing planning and zoning law. RKG will work closely with staff and the City’s legal
counsel to ensure the policy meets both city and state requirements, can replace the existing
inclusionary zoning policy, and minimizes conflicts with other sections of the City’s zoning
ordinance.

Task 5: On-Call Technical Assistance

This task provides for up to 40 hours of on-call assistance from RKG Associates to the City staff
to address any unforeseen needs related to the development and submission of the inclusionary
zoning policy. This can include, but not be limited to, additional Alderman meetings (either as
a group or individual) and further technical research/financial modeling of potential policy
alternatives. RKG Associates will only bill these hours if used and will notify City staff before
initiating this work. If the City exhausts the 40-hour allocation, additional hours can be added
through a contract amendment.

COST PROPOSAL

The following table details the hours and costs per task. The final cost of the project will be
determined by [1] which approach to Task 2 is used and [2] how many technical assistance hours
are consumed (Task 4).

Task 1 — Workshops 32 $6,400
Task 2 — Draft Policy Creation 20 $3,250
Task 3 — Policy Refinement 14 $2,350
Task 4 — Policy Document 16 $3,200
Task 5 — On-Call Assistance 40** $8,000

City of Nashua

Purchasing Department
Administrative Services Division (603) 589-3330
229 Main Street - Nashua, NH 03060 Fax (603) 594-3233

October 13, 2021
Memo #22-179

TO: Mayor Donchess
Finance Committee

SUBJECT: Software Maintenance: Hyland Onbase in the amount not to exceed $52,663 funded
from accounts 54407 Software Maintenance

Please see attached communications from Kimberly Kleiner, Director of Administrative Services, dated
October 13, 2021 for project specific details related to this purchase. Below please find a summary of the
purchase approval request:

Item: Software Maintenance for Hyland Onbase for the period of 1/1/22-12/31/22
Value: $52,662.14
Vendor: Hyland Software Inc

Department: 122 Information Technology
Source Fund: 54407 Software Maintenance

Ordinance: Pursuant to § 5-84 Special purchase procedures. A/(4) Sole-source procurements,
where the proposed purchase is manufactured by only one company.

The Administrative Services Division: Information Technology, and the Purchasing Department
respectfully request your approval of this contract.

Regards,
Kelly Parkinson

Purchasing Manager

Ce: K Kleiner
J Graziano