The Housing and Community Development Department (“HCDD”) requests that City Council authorize an ordinance approving (1) the form of the New Home Development Program Master Contractor Agreement to be executed between the City and each of the following contractors: SLSCO, LTD.; PMG CONSTRUCTION, INC; THE BAPTISTE GROUP LLC; DSW HOMES, LLC; HOUSTON HABITAT FOR HUMANITY, INC; CROWN RIDGE BUILDERS, LLC; THOMPSON CONSTRUCTION GROUP, INC; BURGHLI INVESTMENTS INC dba BURGHLI HOMES; MAYBERRY HOMES, INC; REBUILDING TOGETHER - HOUSTON; JAMES W. TURNER CONSTRUCTION, LTD.; and BYRDSON SERVICES LLC dba EXCELLO HOMES, (2) the form of the New Home Development Program Tri-Party Agreement to be executed between the City, a contractor, and the Land Assemblage Redevelopment Authority (LARA) dba Houston Land Bank, (3) the execution of above referenced Master Contractor and Tri-Party Agreements by the Mayor and City Controller, and (4) providing $6,665,326.00 in previously appropriated Community Development Block Grant (CDBG) funds for the work to be performed under the Master Contractor and Tri-Party Agreements.
(1) HCDD requests City Council approval of the form of the Master Contractor Agreement for the New Home Development Program, which will govern the work to be performed by the contractors identified above, in the development of new single-family homes.
The City selected the 12 contractors listed above through a request for proposal (RFP) process for housing rehabilitation and construction services for single family homes (solicitation number: S67-T26361), issued on August 25, 2017 and revised on September 19, 2017. Council awarded the rehabilitation portion of the RFP on January 24, 2018 (Ord 2018-56). HCDD is now requesting that Council award the construction portion of the RFP. The RFP provides for a three-year contract term, with two, one-year options to renew.
(2) HCDD requests City Council approval of the form of the New Home Development Program Tri-Party Agreement to be used in the New Home Development Program. The Tri-Party Agreement will identify the roles and responsibilities of the City, LARA dba Houston Land Bank, and the named contractor in the development of specific single-family homes.
(3) HCDD requests City Council approve the execution of the Master Contractor and Tri-Party Agreements by the Mayor and City Controller.
(4) HCDD requests City Council approval of $6,665,326.00 in CDBG funds for the development of homes through the New Home Development Program. These funds were previously appropriated for New Single-Family Home Development, as shown in table below. No new appropriation is requested with this action.
New housing construction is typically prohibited using CDBG funds, however, HCDD received waiver of this restriction from the U.S. Department of Housing and Urban Development (HUD) on October 13, 2017. This waiver (in effect until June 30, 2019), enables the City to use CDBG funding for new home construction to replace affordable homes that were lost due to the impacts of Hurricane Harvey.
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New Single-Family Home Development
Appropriation / Budget Source Document
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Funding Source
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Amount
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Ordinance
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Amendment #4 to Program Year 2016 Annual Action Plan
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CDBG
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$2,591,277.25
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2018-321
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Amendment #1 to Program Year 2017 Annual Action Plan
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CDBG
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$4,074,048.75
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2018-321
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Total
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$6,665,326.00
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The Housing and Community Affairs Committee reviewed this item on May 15, 2018.
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Tom McCasland, Director