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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 10/16/2018
District C
Item Creation Date: 10/2/2018
HCD18-72 DSW Somerset GP, LLC - Somerset Lofts
Agenda Item#: 21.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing Loan Agreement between the City of Houston and DWR SOMERSET GP LLC to provide $6,000,000.00 Performance-Based Loan of Federal Community Block Grant Disaster Recovery Program - Rental Housing Projects Round 2 Funds, to assist with site acquisition and eligible soft costs for a 120 unit affordable housing community, located in the vicinity of 8506 Hempstead Road in Houston, Texas - DISTRICT C - COHEN |
| | | | | | | | Background:
The Housing and Community Development Department (HCDD) recommends Council approval of an Ordinance authorizing a
$6,000,000.00 loan utilizing funds form the Community Development Block Grant Disaster Recovery Round 2 (CDBG – DR2) for the construction of a 120-unit multifamily property at 8506 Hempstead Rd. The City of Houston will distribute proceeds from the Loan Agreement to DWR Somerset GP, LLC, which will loan them to the owner, DWR Somerset 18 LP. The funds will be used for the acquisition of land of a multifamily housing development. All 120 units will be restricted to households, including families, earning below 60% of Area Median Income.
The Lazybrook/Timbergrove community offers highly rated schools and proximity to employment centers and public transportation. The total development cost of $22,999,897.00 will fund a project with an urban townhome design and podium parking, fitting right in with the design of developments in the area. The development will consist of (48) one-bedroom units, (60) two-bedroom units, and (12) three- bedroom units. The onsite Multi-Functional Resource Center will feature a variety of tenant services and grade school tutoring.
DW R Development Group is an established for-profit developer/consultant of affordable multifamily properties. Total funding for
Somerset Lofts will be as follows:
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Sources:
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Uses:
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National Equity Fund - 9% Housing
Tax Credit Syndication Proceed
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$13,648,635.00
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Hard Cost
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$12,528,263.00
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CDBG – DR2 (Hurricane Ike)
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$ 6,000,000.00
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Soft Cost
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$ 3,516,079.00
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Capital One- Permanent Loan
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$ 3,300,000.00
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Acquisition Cost
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$ 4,135,000.00
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In-Kind Equity/ Deferred
Developer Fee
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$ 51,262.00
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Developer Fee
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$ 2,308,362.00
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Reserves
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$ 512,193.00
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Total Source of Funds:
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$22,999,897.00
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Total Project Cost:
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$22,999,897.00
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No Fiscal Note required on grant items.
This item was reviewed by the Housing and Community Affairs Committee on August 21, 2018.
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Tom McCasland, Director
Housing and Community Development Department
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| | | | | | | | Amount and Source of Funding:
$6,000,000.00
Federal Local State - Pass Through Fund (5030) |
| | | | | | | | Contact Information:
Roxanne Lawson
Phone: (832) 394-6307 |
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