The Housing and Community Development Department (HCDD) recommends Council approve a $14,500,000 performance-based loan (consisting of federal Disaster Recovery funds) to HY FS LLC for construction of the Residences at Hardy Yards, located at North Main and Burnett streets in the Near Northside neighborhood.
The development has a total of 350 units, including 179 affordable and 171 market-rate one and two bedroom units, and is part of a comprehensive, mixed-use redevelopment of the Hardy Rail Yard site. On-site amenities will include a resident center offering computers and business center.
The development, which has a total budget of $50,452,714, will Affirmatively Further Fair Housing in the Near Northside by maintaining affordable housing options in a neighborhood where gentrification is expected. Currently, there are extensive public and private investments underway in the Near Northside with projects such as the Metro light rail Red Line extension and drainage and street improvements. Additionally the development is near the University of Houston Downtown campus and another Disaster Recovery Round 2 affordable housing development, Avenue Station (f.k.a. 2010 North Main).
The Residences at Hardy Yards was one of five proposals selected out of 40 for funding through a competitive RFP process seeking proposals in DR 2 targeted Community Revitalization Areas. Development group principal Lee Zieben is currently partnered with HCDD for the ongoing renovation of 160 multifamily affordable units at Gulf Coast Arms, a development running on-time and within budget. The Residences at Hardy Yards is further validated by partnership and backing from the Houston Housing and Finance Corporation which formed HY FS LLC to undertake this development.
In exchange for this financing, 179 units are restricted at affordable rents for low-income tenants with an affordability period of no less than 10 years. Funding for this project is as follows:
Sources of Funds:
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Senior Lender (Construction Loan)
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$27,473,993
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Developer Equity
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$8,478,721
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City of Houston (CDBG-DR2)
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$14,500,000
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$50,452,714
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This item was presented to the Housing, Sustainable Growth and Development Committee on December 3, 2013.