Department: Housing and Community Development
Department Head/Elected Official: Thao Costis, Executive Director
Regular or Supplemental RCA: Supplemental RCA
Type of Request: Contract - Award
Project ID (if applicable): New Hope Housing Avenue C
Vendor/Entity Legal Name (if applicable): Houston Area Community Development Corporation
MWDBE Contracted Goal (if applicable):
MWDBE Current Participation (if applicable):
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 increase the conditional award to $11,000,000 of American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds to purchase the land with a maximum purchase price of $3,677,000 and to negotiate and execute a loan agreement up to $7,323,000 for eligible development costs for the New Hope Housing Avenue C project for the Harris County Housing Finance Corporation.
end
Background and Discussion:
On Mach 26, 2024, Commissioners Court approved for Housing and Community Development a conditional award of up to $9,000,000 of American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds to purchase the land with a maximum purchase price of $3,677,000 and to negotiate and execute a loan agreement up to $5,323,000 for eligible development costs for New Hope Housing Avenue C project for the Harris County Housing Finance Corporation. Houston Area Community Development Corporation was awarded 4% LITC Tax Credits by TDHCA in 2023. The total development costs for New Hope Housing Avenue C project are $33,552,882.
New Hope Housing Avenue C has seen an 8.46% increase in hard costs and a 22.27% increase in the total development cost. These increases are due to rising construction, insurance costs, and persistently high interest rates. Since submitting the original application in 2023, the total development cost has increased from $33M to $41M. The additional funding requested will offset these rises and make the project financially feasible.
Houston Area Community Development Corporation is requesting from $9,000,00 up to $11,000,000.00 in ARPA State and Local Fiscal Recovery Funds purchase the land with a maximum purchase price of $3,677,000 and to negotiate and execute a loan agreement from $5,323,000 to $7,323,000 for eligible development costs for New Hope Housing Avenue C project located at 7520 Avenue C, Houston, TX 77012 for the Harris County Housing Finance Corporation. The total development costs for New Hope Housing Avenue C are now $40,992,978. The Harris County Housing Finance Corporation has agreed to enter the General Partnership of this Project and receive Equitable Title.
The New Hope Housing Avenue C will create 120 new Multi-Family Affordable Housing Units. The unit mix will consist of 19 units for those making 30% or less of Area Median Income, 44 units for those making between 31%-50% of Area Median Income, and 57 units for those making between 51%-60 Area Median Income, The Project will consist of 90 one-bedroom units, and 30 two-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 $3,677.000.00 in ARPA State and Local Fiscal Recovery Funds to the HCHFC to acquire the land for the New Hope Housing Avenue C Project and give a conditional commitment of
$7,323,000.00 in ARPA State and Local Fiscal Recovery Funds to Houston Area Community Development Corporation for eligible development cost for the New Hope Housing Avenue C 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 |
|
3/26/2024 |
18 |
On Mach 26, 2024, Commissioners Court approved for Housing and Community Development a conditional award of up to $9,000,000 of American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds for the acquisition and development of a new multi-family affordable housing development called New Hope Housing Avenue C located at 7520 Avenue C, Houston, TX 77012 |
Location:
Address (if applicable): 7520 Avenue C, Houston, TX 77012
Precinct(s): Precinct 1
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Fiscal and Personnel Summary |
|
Service Name |
Affordable Rental Housing |
|
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Current Fiscal Year Cost |
Annual Fiscal Cost |
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Labor |
Non-Labor |
Total |
Recurring Expenses |
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Funding Sources |
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Existing Budget |
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2651 - American Rescue Plan 2021 |
$ |
$11,000,000.00 |
$11,000,000.00 |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
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Total Current Budget |
$ |
$11,000,000.00 |
$11,000,000.00 |
$ |
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Additional Budget Request (Requires Fiscal Review Request Form) |
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|
Choose an item. |
$ |
$ |
$ |
$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Total Additional Budget Request |
$ |
$ |
$ |
$ |
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Total Funding Request |
$ |
$ |
$ |
$ |
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Personnel (Fill out section only if requesting new PCNs) |
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Current Position Count for Service |
- |
- |
- |
- |
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Additional Positions Request |
- |
- |
- |
- |
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Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: June 4, 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