Department: Housing and Community Development
Department Head/Elected Official: Thao Costas, Executive Director
Regular or Supplemental RCA: Regular RCA
Type of Request: Contract - Award
Project ID (if applicable): Manson Place Apartments
Vendor/Entity Legal Name (if applicable): Manson Place Apts, LP
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 $1,850,000 of American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds to purchase the land for the Manson Place Apartments for the Harris County Housing Finance Corporation with a maximum purchase price of $1,850,000.
end
Background and Discussion:
On March 26th Commissioners court approved the Manson Place Apts, LP project a conditional award of up to $4,250,000.00 in ARPA State and Local Fiscal Recovery Funds for the acquisition and development of a new multi-family affordable housing development called Manson Place Apartments located at 3502 Reeves Street, Houston 77004.
The Manson Place Apts, LP project is no longer seeking the eligible development costs and will only request the conditional award for acquisition only costs up to $1,850,000 of American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds to purchase the land for the Manson Place Apartments for the Harris County Housing Finance Corporation with a maximum purchase price of $1,850,000. Manson Place Apts, LP reduced its acquisition only maximum price from $2,065,000.00 to $1,850,000.00 by decreasing its construction costs through value engineering without sacrificing any resident amenities. Additionally, a slight downtick in interest rates is affording Manson Place Apts, LP more borrowing capacity, and underwriting for an additional source from TDHCA (Multi-Family Direct Loan - NHTF) was approved. Manson Place Apts, LP must close by June 30, 2024, and seeking the acquisition only funding will allow Manson Place Apts, LP to meet its closing deadline.
Manson Place Apts, LP 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 Manson Place Apartments are $30,981,422.00.
The Manson Place Apartments Project will create 76 total units of which 74 are new Multi-Family Affordable Housing Units and 2 Market Rate units. The unit mix will consist of 8 units for those making 30% or less of Area Median Income, 66 units for those making between 51%-80% Area Median Income, The Project will consist of 62 two-bedroom units, and 14 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 $1,850,000.00 in ARPA State and Local Fiscal Recovery Funds to the HCHFC to acquire the land for the Manson Place Apartments 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 26th Commissioners court approved the Manson Place Apts, LP project a conditional award of up to $4,250,000.00 in ARPA State and Local Fiscal Recovery Funds for the acquisition and development of a new multi-family affordable housing development called Manson Place Apartments located at 3502 Reeves Street, Houston 77004. |
Location:
Address (if applicable): 3502 Reeves Street, Houston 77004
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 |
$ |
$1,850,000.00 |
$1,850,000.00 |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Current Budget |
$ |
$1,850,000.00 |
$1,850,000 |
$ |
|
Additional Budget Request (Requires Fiscal Review Request Form) |
|
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Additional Budget Request |
$ |
$ |
$ |
$ |
|
Total Funding Request |
$ |
$1,850,000.00 |
$1,850,000.00 |
$ |
|
Personnel (Fill out section only if requesting new PCNs) |
|
|
Current Position Count for Service |
- |
- |
- |
- |
|
Additional Positions Request |
- |
- |
- |
- |
|
Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: May 7, 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