| The Housing and Community Development Department (“HCDD”) requests that City Council approve an ordinance authorizing the re-appropriation of $9,935,050.00 in Tax Increment Reinvestment Zone (TIRZ) Affordable Housing funding from the Single-Family Home Repair Program Master Contractor Agreements to the New Home Development Program Master Contractor Agreements.
This action is one of four related actions to ensure that different aspects of HCDD’s Single Family Program are funded appropriately and maintain compliance with HUD regulations.
On October 13, 2017, The Department of Housing and Urban Development (HUD) issued a waiver, in effect until June 30, 2019, to allow for the use of CDBG funds for new home construction to replace affordable housing lost due to the impact of Hurricane Harvey. Due to restrictions associated with implementing the program under this waiver, HCDD is seeking to deallocate the CDBG funding available for new construction activities. Instead, HCDD will re-appropriate Tax Increment Reinvestment Zone (TIRZ) Affordable Housing Set-Aside funding for the New Home Development Program Master Contractor Agreements to support the construction of affordable single-family homes.
The four related actions below will ensure HCDD stays in compliance with HUD regulations in four steps:
1. HCD18-104 - NHDP Master Contractor Agreement De-Obligation: De-Obligates $6,665,326.00 in CDBG funds from the Master Contractor Agreement for New Home Development
2. HCD18-108 - CDBG Substantial Amendments: Reallocates $12,256,284.58 in CDBG funds from New Home Construction to Home Repair
3. HCD18-102 – Home Repair Master Contractor Agreement Allocation: Allocates $10,098,907.00 of CDBG funds to a Master Contractor Agreement for Home Repair (the remaining $2 million will be used for project delivery)
4. HCD18-101 – De-appropriate/Re-appropriate $9,935,050.00 of TIRZ Funding from Home Repair New to New Home Development
Ordinance No. 2018-56, on January 24, 2018, appropriated $10,000,000 of TIRZ funding for use under the Master Contractor Agreements for the Single-Family Home Repair Program (HRP).
HCDD is now requesting the de-appropriation of $9,935,050.00 of this funding from the HRP Master Contractor Agreements, previously executed between the City and each of the following 12 contractors, and the allocation of these funds to the Master Contractor Agreements for the New Home Development Program (NHDP), for these same contractors. These changes are noted in the table below.
|
VENDOR
|
VENDOR #
|
CONTRACT #
|
ORIGINAL HRP AMOUNT
|
HRP DEALLOCATION
|
REMAINING HRP AMOUNT
|
NHDP ALLOCATION AMOUNT
|
|
SLSCO, Ltd.
|
148376
|
4600014684
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
|
The Baptiste Group
|
152911
|
4600014685
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
DSW Homes, LLC
|
136956
|
4600014686
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
Houston Habitat for Humanity
|
116676
|
4600014687
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
Crown Ridge Builders, LLC
|
153206
|
4600014688
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
James W. Turner Construction, Ltd. (JWTC)
|
150505
|
4600014689
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
Rebuilding Together Houston
|
137266
|
4600014690
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
Mayberry Homes, Inc.
|
141253
|
4600014691
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
Thompson Construction Group, Inc.
|
153056
|
4600014692
|
$833,333.33
|
($768,383.33)
|
$64,950.00
|
|
Burghli Homes
|
127522
|
4600014693
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
Byrdson Services LLC
|
131234
|
4600014695
|
$833,333.33
|
($833,333.33)
|
$0.00
|
|
PMG Construction Inc.
|
154015
|
4600014698
|
$833,333.37
|
($833,333.37)
|
$0.00
|
|
TOTAL
|
|
|
$10,000,000.00
|
($9,935,050.00)
|
$64,950.00
|
$9,935,050.00
|
The 12 above-mentioned contractors were selected through a request for proposal (RFP) process for housing rehabilitation and/or construction services for existing singlefamily homes and rehabilitation, reconstruction, and new construction of single family homes (solicitation number: S67-T26361), issued on August 25, 2017 and revised on September 19, 2017.
The Director or Designee has the flexibility to move funding between contractors based upon their job performance scorecard and may terminate a contractor at will, with five days prior notice.
Funding for this item is included in the FY2019 Adopted Budget. Therefore, no fiscal note is required as stated in the Financial Policies.
The Housing and Community Affairs Committee reviewed this item on November 7, 2018.
_________________________
Tom McCasland, Director
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