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Item Coversheet

CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 9/6/2017

Item Creation Date:

MSC - Harvey - Emancipation

Agenda Item#: 5.


Summary: AN ORDINANCE RELATING TO THE USE OF CERTAIN PROPERTY LOCATED AT 419 EMANCIPATION AVENUE (“PROPERTY”) FOR THE OPERATION OF A SHELTER FACILITY PROVIDING EMERGENCY HOUSING FOR PERSONS DISPLACED BY HURRICANE HARVEY; AUTHORIZING THE MAYOR OR THE MAYOR’S DESIGNEE TO NEGOTIATE THE TERMS AND CONDITIONS AND EXECUTE (1) A LEASE AGREEMENT FOR THE PROPERTY BETWEEN 419 HOPE PARTNERS, LLC, LANDLORD, AND THE CITY OF HOUSTON, LESSEE, FOR A PERIOD OF TIME NOT TO EXCEED TWELVE MONTHS (“LEASE AGREEMENT”); AND (2) A MANAGEMENT AGREEMENT BETWEEN THE CITY OF HOUSTON AND NEW HOPE HOUSING, INC. FOR THE OPERATION OF A SHELTER ON THE PROPERTY FOR A PERIOD OF TIME NOT TO EXCEED TWELVE MONTHS (“MANAGEMENT AGREEMENT”); APPROPRIATING THE SUM OF $500,000.00 OUT OF THE TIRZ AFFORDABLE HOUSING FUND; ALLOCATING THE AFOREMENTIONED FUNDS AS FOLLOWS: (1) $155,000 TO THE LEASE AGREEMENT AND (2) $345,000 TO THE MANAGEMENT AGREEMENT; MAKING FINDINGS AND CONTAINING PROVISIONS RELATING TO THE SUBJECT; AND DECLARING AN EMERGENCY


Background: Hurricane Harvey made landfall on Friday, August 25, 2017, between Port Aransas and Port O'Connor, Texas as a category 4 hurricane. Its devastating effects soon began to impact Houston. Hurricane Harvey caused catastrophic flooding, other severe weather, and hazardous conditions. Hurricane Harvey also presented an imminent threat to public health and safety and has resulted in the displacement of numerous individuals and families who were placed at emergency shelters established in various locations across the City, including the George R. Brown Convention Center and the Toyota Center. It is necessary to identify locations for more permanent emergency housing for these displaced individuals and families as soon as possible. Emergency shelter space is available at 419 Emancipation Avenue (the “Property”), which would enable the City to provide approximately 296 of these displaced individuals and families with emergency housing for the next twelve months. To secure this space, the City proposes to enter into a Lease Agreement to lease the Property from 419 Hope Partners LLC (“Lease Agreement”) and a Management Agreement for New Hope Housing, Inc. to operate an emergency shelter at the Property (“Management Agreement”). Due to the urgency of this situation, the Mayor or the Mayor’s Designee would be delegated the authority to negotiate the terms and conditions of the Lease Agreement and the Management Agreement so that these agreements can become effective as soon as possible and the affected individuals can be relocated immediately. The Lease Agreement and the Management Agreement would be in place for the next twelve months. At this time, City Council is requested to authorize the appropriation and allocation of $500,000.00 from Fund 2409, the TIRZ Affordable Housing Fund, with $155,000.00 of that amount allocated for payment of the initial month of costs incurred by the City pursuant to the Lease Agreement $345,000.00 of that amount allocated for payment of the initial month of costs incurred by the City pursuant to the Management Agreement. City Council will be asked to authorize additional appropriation and allocation of the remaining funding amount for these agreements in the coming weeks _________________________


Amount and Source of Funding: $500,000.00 - TIRZ Affordable Housing Fund (2409)


Contact Information: Andy Icken, Chief Development Officer

ATTACHMENTS:
Description	Type
Emergency Notice	Public Notice