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): N/A
Vendor/Entity Legal Name (if applicable): HTG Rushmore, LLC
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 conditionally award up to $5,975,000 of American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds to purchase the land for The Rushmore for the Harris County Housing Finance Corporation with a maximum purchase price of $3,280,000 and to negotiate and execute a loan agreement of up to $2,695,000 in ARPA State and Local Fiscal Recovery Funds for eligible development costs for The Rushmore project.
end
Background and Discussion:
HTG Rushmore, LLC is requesting up to $5,975,000 in ARPA State and Local Fiscal Recovery Funds for the acquisition and development of a new multi-family affordable housing development called The Rushmore located at 800 Highway 6 South, Houston 77079. HTG Rushmore, LLC was awarded 9% LIHTC Tax Credits by TDHCA in 2021. Due to increase in insurance rates, interest rates, and construction costs, this project is no longer viable without partnering with Harris County and receiving ARPA State and Local Fiscal Recovery Funds. The total development costs for The Rushmore are $31,038,092. The Harris County Housing Finance Corporation has agreed to enter the General Partnership of this Project and receive Equitable Title.
The Rushmore Project will create 101 total units of which 85 are new Multi-Family Affordable Housing Units and 16 Market Rate units. The unit mix will consist of 9 units for those making 30% or less of Area Median Income, 76 units for those making between 51%-80% Area Median Income, The Project will consist of 32 one - bedroom, 50 two-bedroom units, and 19 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 $3,280,000 in ARPA State and Local Fiscal Recovery Funds to the HCHFC to acquire the land for The Rushmore Project and give a conditional commitment of $2,695,000 in ARPA State and Local Fiscal Recovery Funds to HTG Rushmore, LLC for eligible development cost for The Rushmore 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 |
|
|
|
|
Location:
Address (if applicable): 800 Highway 6 South, Houston 77079
Precinct(s): Precinct 4
|
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 |
$ |
$5,975,000.00 |
$5,975,000.00 |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Current Budget |
$ |
$5,975,000.00 |
$ |
$ |
|
Additional Budget Request (Requires Fiscal Review Request Form) |
|
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Additional Budget Request |
$ |
$ |
$ |
$ |
|
Total Funding Request |
$ |
$5,975,000.00 |
$5,975,000.00 |
$ |
|
Personnel (Fill out section only if requesting new PCNs) |
|
|
Current Position Count for Service |
- |
- |
- |
- |
|
Additional Positions Request |
- |
- |
- |
- |
|
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