Legislation Details

File #: 24-7049    Version: 1 Name:
Type: Contract - Amendment Status: Passed
File created: 10/30/2024 In control: Commissioners Court
On agenda: 11/12/2024 Final action: 11/12/2024
Title: Request for approval of a fourth amendment to an agreement with HCHA Redevelopment Authority, Inc. (a subsidiary of the Harris County Housing Authority) to add $428,933 in Neighborhood Stabilization Program Round 3 Funds to the Acquisition line item, while the CDBG-DR award amount of $23,000,000 remains unchanged for the Bluestem Apartments project.
Attachments: 1. Backup Bluestem Amendment_4thAmendment

Department: Housing and Community Development

Department Head/Elected Official: Thao Costis, Executive Director

 

Regular or Supplemental RCA: Regular RCA

Type of Request: Contract - Amendment

 

Project ID (if applicable): D2017-065

Vendor/Entity Legal Name (if applicable): Bluestem Apartments

 

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 for approval of a fourth amendment to an agreement with HCHA Redevelopment Authority, Inc. (a subsidiary of the Harris County Housing Authority) to add $428,933 in Neighborhood Stabilization Program Round 3 Funds to the Acquisition line item, while the CDBG-DR award amount of $23,000,000 remains unchanged for the Bluestem Apartments project.

end

 

Background and Discussion:

On May 19, 2020, Commissioners Court approved an agreement between Harris County and HCHA Redevelopment Authority, Inc. for the Bluestem Apartments Project, utilizing $23,000,000.00 in CDBG-DR funds.

 

On March 9, 2021, Commissioners Court approved a First Amendment to decrease the Developer Fees budget line item by $3,602,105 and reallocating to the budget line items Acquisition by $263,080, Site Work increase by $1,274,175 and Direct Construction increase by $2,064,850, and the total amount of funding for this project staying at $40,154,512. The total amount of Round 1 CDBG-DR funds will remain $23,000,000.00 and the total amount of funding for this project is $40,154,512. The total amount of Round 1 CDBG-DR funds will remain $23,000,000.00 and the total amount of funding for this project is $40,154,512.

 

On November 15, 2022, Commissioners Court approved a Second Amendment to the Agreement to extend the construction completion date, such that the adjusted construction completion date is June 22, 2023, due to delays with civil and plumbing re-design, weather delays, and interruptions resulting from the COVID-19 pandemic.

 

On August 8, 2023, Commissioner Court Approved a Third Amendment to (a) extend the 18-month construction completion requirement for an additional five (5) months to December 31, 2023, due to weather impact days, delays with electrical equipment, delivery of building meters due to nationwide parts and supply chain issues that affected the schedule and a CenterPoint equipment relocation that is projected to delay the project; (b)  Direct Construction funding line has been established at $14,485,476 to $15,709,438, representing a total increase of $1,223,962; (c) Acquisition funding line has been reduced from $3,900,000 to $351,581, representing a total decrease of $3,548,419; (d) General Soft Costs has increased from $1,662,400 to $3,278,773, representing an increase of $1,616,373; (e) Permanent Financing funding line item has increased from $628,545 to $758,084 with a total increase of $129,539.

 

The Parties now desire to amend said Agreement to add $428,933 in Neighborhood Stabilization Program Round 3 (NSP-3) funds to the Acquisition line item, while the CDBG-DR of $23,000,000 remains unchanged.

 

Expected Impact:

The expected impact is an increase in the number of available affordable units reserved for low-income households.

 

Alternative Options:

The alternative option is that the developer can increase the number of market-rate units to cover any remaining costs associated with the development of the project.

 

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

05/19/2020

21-783

Approval of Bluestem Apartments Loan Agreement

03/09/2021

101

Approval of Bluestem Apartments First Amendment

11/15/2022

166

Approval of Bluestem Apartments Second Amendment

08/08/2023

160

Approval of Bluestem Apartments Third Amendment

 

Location:

Address (if applicable): 12103 S Sam Houston Pkwy N., Houston, TX 77044

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

 

 

 

 

Grant

$23,000,000

$0

$23,000,000

$

Grant

$428,933

$0

$428,933

$

Choose an item.

$

$0

$0

$

Total Current Budget

$23,428,933

$0

$23,428,933

$

Additional Budget Request (Requires Fiscal Review Request Form)

 

Choose an item.

$

$

$

$

Choose an item.

$

$

$

$

Choose an item.

$

$

$

$

Total Additional Budget Request

$

$

$

$

Total Funding Request

$23,428,933

$

$23,428,933

$

Personnel (Fill out section only if requesting new PCNs)

 

Current Position Count for Service

-

-

-

-

Additional Positions Request

-

-

-

-

Total Personnel

-

-

-

-

 

Anticipated Court Date: 11/12/24

 

Anticipated Implementation Date (if different from Court date): N/A

 

Emergency/Disaster Recovery Note: Disaster Recovery related item

 

Contact(s) name, title, department: Sam Borders; Director, Multi-Family Housing Development.

 

Attachments (if applicable):  Fourth Amendment to Bluestem Apartments Loan Agreement