Department: Housing and Community Development
Department Head/Elected Official: Thao Costis, Executive Director
Regular or Supplemental RCA: Regular RCA
Type of Request: Contract - Award
Project ID (if applicable): Lost Oaks
Vendor/Entity Legal Name (if applicable): Mark-Dana Corporation
MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Participation (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Request Summary (Agenda Caption):
title
Request by Housing and Community Development for approval to transfer up to $2,750,000 in American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) to the Harris County Housing Finance Corporation to purchase the land at 810 Oak Street for the Lost Oaks Project, and execute a loan agreement in an amount up to $1,778,000 in ARPA SLFRF funds to reimburse eligible development costs for the project.
end
Background and Discussion:
On March 26, 2024, Mark-Dana Corporation previously requested and was conditionally awarded up to $3,100,000.00 in ARPA State and Local Fiscal Recovery Funds for the acquisition and development of a new multi-family affordable housing development called Lost Oaks located at 810 Oak Street, Houston 77018. Mark- Dana Corporation was awarded 9% LIHTC Tax Credits by Texas Department of Housing and Community Affairs (TDHCA) in 2023. The total development costs for Lost Oak are $26,044,410.
On June 4, 2024, Mark-Dana Corporation previously requested and was conditionally awarded up to $4,528,000 in ARPA State and Local Fiscal Recovery Funds for the acquisition and development of a new multi-family affordable housing development called Lost Oaks located at 810 Oak Street, Houston 77018. Mark- Dana Corporation was awarded 9% LIHTC Tax Credits by Texas Department of Housing and Community Affairs (TDHCA) in 2023. The total development costs for Lost Oak are $26,044,410.
This request will allow for the following changes to be made to the purchase price and pre-development costs: maximum purchase price has been decreased from $2,850,000 to $2,750,000 with an increase in the ARPA State and Local Fiscal Recovery Funds for eligible predevelopment costs for the Lost Oak Project from 1,678,000 to $1,778,000 to which will not increase the previous conditional award of up to $4,528,000.
The Lost Oaks will create 78 new Multi-Family Affordable Housing Units. The unit mix will consist of 11 units for those making 30% or less of Area Median Income, 32 units for those making between 31%-50% of Area Median Income, and 35 units for those making between 51%-80 Area Median Income, The Project will consist of 23 one-bedroom units, 50 two-bedroom units and 5 three-bedroom units. The HCHFC will own the land and the Project will enter a 99-year ground lease, which will keep the project affordable for 99-years.
Expected Impact:
The expected fiscal impact is to transfer $2,750,000.00 in ARPA State and Local Fiscal Recovery Funds to the HCHFC to acquire the land for the Lost Oak Project and give a conditional commitment of $1,778,000 in ARPA State and Local Fiscal Recovery Funds to Mark -Dana Corporation for eligible development cost for the Lost Oaks Project.
Alternative Options:
The alternative option is that the project will not move forward.
Alignment with Goal(s):
_ Justice and Safety
_ Economic Opportunity
X Housing
_ Public Health
_ Transportation
_ Flooding
_ Environment
_ Governance and Customer Service
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
|
03/26/2024 |
16 |
On March 26, 2024, Mark-Dana Corporation previously requested and was conditionally awarded up to $3,100,000.00 in ARPA State and Local Fiscal Recovery Funds for the acquisition and development of a new multi-family affordable housing development called Lost Oaks located at 810 Oak Street, Houston 77018 |
|
06/4/2024 |
16 |
On June 4, 2024, Mark-Dana Corporation previously requested and was conditionally awarded up to $4,528,000 in ARPA State and Local Fiscal Recovery Funds for the acquisition and development of a new multi-family affordable housing development called Lost Oaks located at 810 Oak Street, Houston 77018 |
Location:
Address (if applicable): 810 Oak Street, Houston 77018
Precinct(s): Precinct 1
|
Fiscal and Personnel Summary |
|
Service Name |
Affordable Rental Housing |
|
|
|
Current Fiscal Year Cost |
Annual Fiscal Cost |
|
|
Labor |
Non-Labor |
Total |
Recurring Expenses |
|
Funding Sources |
|
|
Existing Budget |
|
|
|
|
|
2651 - American Rescue Plan 2021 |
$ |
$4,528,000.00 |
$4,528,000.00 |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Current Budget |
$ |
$4,528,000.00 |
$4,528,000.00 |
$ |
|
Additional Budget Request (Requires Fiscal Review Request Form) |
|
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Additional Budget Request |
$ |
$ |
$ |
$ |
|
Total Funding Request |
$ |
$4,528,000.00 |
$4,528,000.00 |
$ |
|
Personnel (Fill out section only if requesting new PCNs) |
|
|
Current Position Count for Service |
- |
- |
- |
- |
|
Additional Positions Request |
- |
- |
- |
- |
|
Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: September 19, 2024
Anticipated Implementation Date (if different from Court date): N/A
Emergency/Disaster Recovery Note: COVID-19 related item
Contact(s) name, title, department: Sam Borders, Director, Multi-Family Housing Development, Harris County Housing and Community Development
Attachments (if applicable): Court Order