Primary Department: Housing and Community Development
Primary Department Head/Elected Official: Thao Costis, Executive Director
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular RCA
Type of Request: Contract - Amendment
Project ID (if applicable): D2017-087
Vendor/Entity Legal Name (if applicable): NHPF Temenos Conduit LLC; Temenos Permanent Affordable LL
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - project was awarded prior to launch of County's M/WBE Program
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Rate is not 0% and is listed above.
Request Summary (Agenda Caption):
title
Request for approval of a sixth amendment to an agreement with NHPF Temenos Conduit, LLC and Temenos Permanent Affordable, LLC for the Temenos IV project to reallocate budget line-items in order to align the budget with the real costs of the project without affecting the overall project budget of $10,881,905.
end
Background and Discussion:
On June 29, 2021, Commissioner’s Court approved an agreement between Harris County, NHPF Temenos Conduit LLC, and Temenos Permanent Affordable LLC for the Temenos IV project.
On November 15, 2022, Commissioner’s Court approved the First Amendment to the said agreement to extend the 18-month construction completion requirement for an additional four (4) months to June 30, 2023 due to unanticipated rain/hurricane delays, and unexpected infrastructure delays.
On January 31, 2023, Commissioner's Court approved the Second Amendment to the agreement to include budget revisions to various funding sources for the project. Changes to the Harris County CDBG-DR FY17 budget reflect redistribution of funding between the line items; however, the total amount of Harris County’s commitment of $11,000,000, remains unchanged.
On May 16, 2023, Commissioner's Court approved the Third Amendment to said agreement to extend the 18-month construction completion requirement for an additional four (5) months to November 30, 2023 due to unanticipated rain/hurricane delays, and unexpected infrastructure delays.
On August 29, 2023, Commissioner’s Court approved the Fourth Amendment to said agreement to add $404,000.00 of 2015 Harris County HOME Funds to fund eligible soft costs and reducing the amount of 2017 Harris County CDBG-DR Funds by 118,095.00 from the Harris County CSD Management and Oversight and HCED Inspections Line-Item. This would bring the total Harris County funding to $11,285,905.00 with $10,881,095 in 2017 Harris County CDBG- DR Funds and $404,000 in 2015 Harris County HOME Funds.
On September 19 2023, Commissioner’s Court approved the Fifth Amendment to amend said agreement to (i) incorporate requirements of Title I of the Housing and Community Development Act of 1974 and all regulations issued there under; (ii) to add the following language : "WHEREAS, Harris County Received HOME Investment Partnerships Program grant funds (Application Number: M-15-UC-48-0215) from the U.S. Department of Housing & Urban Development (HUD). Harris County approves obligating $404,000.00 in HOME funds to the Temenos IV Project from the HOME Investment Partnership Program (HOME) 2015 funds."; (iii) to add the following language, "The Subrecipient and Maker shall be responsible for administering a HOME Project in manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds as set out in 24 C.F.R. §92 HOME Investments Partnership Program (HOME). The Subrecipient and Maker certifies and agrees that the activities carried out with funds provided under this Agreement shall meet one or more of the HOME Program requirements at 24 C.F.R. §92.205, which states that HOME funds may be used to develop, support and finance land acquisition of non-luxury affordable housing. Specific eligible Project costs are set forth in 24 C.F.R. §92.206."; (iv) to reallocate funding which is outlined in Exhibit D and bringing the total Harris County funding to $10,881,905.00 in 2017 CDBG-DR funding and $404,000.00 in total Harris County HOME 2015 funding with total development costs now at $34,428,394.00.
WHEREAS now, the parties desire to amend said Agreement for the Sixth Amendment, to (i) to increase the CDBG-DR Acquisition line-item from $662,277.29 to $769,605.79; (ii) to decrease the CDBG-DR Direct Construction line-item from $8,064,300.71 to $6,964,941.66; (iii) to decrease the CDBG-DR Site Work line from $1,374,163.28 to $0; (iv) to decrease the CDBG-DR Other Construction line-item from $261,163.72 to $0; (v) to decrease the CDBG-DR Construction Management line item from $120,000 to $0; and (vi) to increase the CDBG-DR Developer Fee line-item from $0 to $2,747,357.55. The Harris County Harris County CDBG-DR funding will remain unchanged for a total of $10,881,905 budget.
Expected Impact:
The expected impact is that the amendment changes to the agreement will be more aligned with the projects current budget line-item adjustments. The Harris County Harris County CDBG-DR funding will remain unchanged for a total of $10,881,905 budget.
Alternative Options:
The alternative option is that the developer can de-obligate funds in each budget line-item rather than doing budget line-item changes that match the needs of the project at the current stage in development.
County Strategic Plan Goal: 6. Help residents achieve housing stability.
County Strategic Plan Objective: U: Build and preserve affordable housing, particularly for low-income families.
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): W2: Increase stock of permanent supportive housing.
Additional notes related to the Strategic Plan: N/A
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
|
07/14/2020 |
320.1008-1010 |
Approval of Funding for the Temenos IV project |
|
06/29/2021 |
214 |
Approval of Temenos IV Loan Agreement |
|
11/15/22 |
164 |
Approval of Temenos IV Amendment #1 |
|
01/31/23 |
423 |
Approval of Temenos IV Amendment#2 |
|
05/16/23 |
175 |
Approval of Temenos IV Amendment #3 |
|
8/29/23 |
186 |
Approval of Temenos IV Amendment #4 |
|
09/19/23 |
437 |
Approval of Temenos IV Amendment #5 |
Location:
Address (if applicable): 1703 Gray Street, Houston, TX 77003
Precinct(s): Precinct 1
|
Fiscal and Personnel Summary |
|
Service Name |
Temenos IV |
|
|
|
Current Fiscal Year Cost |
Annual Fiscal Cost |
|
|
Labor |
Non-Labor |
Total |
Recurring Expenses |
|
Funding Sources |
|
|
Existing Budget |
|
|
|
|
|
Grant |
$0 |
$0 |
$0 |
$0 |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Existing Budget |
$ |
$ |
$ |
$ |
|
Additional Budget Request (Requires Fiscal Review Request Form) |
|
|
Grant |
$0 |
$0 |
$0 |
$0 |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Additional Budget Request |
$ |
$ |
$ |
$ |
|
Total Funding Sources |
$0 |
$0 |
$0 |
$0 |
|
Grants - Proposed Budget (To be filled out by Grants staff only) |
|
|
Labor |
Non-Labor |
Total |
No. of Grant Years |
|
Local Match Source - Existing Budget: Choose an item. |
$ |
$ |
$ |
|
|
Local Match Source - Additional Budget Request: Choose an item. |
$ |
$ |
$ |
|
|
Grant Funds Applied for/Awarded (Total) |
$ |
$ |
$ |
|
|
Personnel (Fill out section only if requesting new PCNs) |
|
|
Current Position Count for Service |
- |
- |
- |
- |
|
Additional Positions Request |
- |
- |
- |
- |
|
Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: 1/9/2025
Anticipated Implementation Date (if different from Court date): 1/9/2025
Emergency/Disaster Recovery Note: Disaster Recovery related item
Contact(s) name, title, department: Sam Borders, Director, Multifamily Development
Attachments (if applicable): Amendment 6