Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 3/26/2019
ALL
Item Creation Date: 2/28/2019

HCD19-23 Amendment for Mayberry Homes, Inc. NSP Loan Agreement

Agenda Item#: 17.


 
                               
Summary:

ORDINANCE approving and authorizing First Amendment to a Neighborhood Stabilization Program (“NSP”) Developer Loan Agreement between the city of Houston and MAYBERRY HOMES, INC to extend the term and the deadlines for completion and the expenditure of funds to acquire land and develop four affordable single-family homes in NSP target areas in Houston Texas

Background:

The Housing and Community Development Department (HCDD) recommends Council approval to amend the Neighborhood Stabilization Program (NSP) developer loan agreement that was previously approved by Council on August 22, 2018 Ordinance 2018-655.

 

The Amendment to the Mayberry Homes, Inc. NSP 3 Affordable Housing funds to develop affordable, single-family homes in HUD designated NSP 1 and NSP 3 target areas will extend the completion dates for work under the contracts as follows:

 

  1. The work completion date is extended to August 30, 2019
  2. The date by which all 100% of the Grant shall have been drawn and expended is extended to December 31, 2019
  3. The stated Maturity Date is extended to end on the earlier to occur of: (1) Developer's sale of all the Properties covered by the Agreement, and (2) December 31, 2019.

 

The NSP developer loan agreement grants Mayberry Homes Inc. a total of $718,887.81 comprised of $201,563.65 of NSP 1 and $517,324.16 of NSP 3 funding. The homes (all 4 homes are located in Sunnyside) will be approximately 1,400 square feet, have three bedrooms and two baths, and include a variety of energy efficient components, such as high efficiency HVAC systems, low E-rated windows, and radiant barrier roofing.

 

The extension will allow Mayberry Homes, Inc. to develop affordable, single-family housing.  HCDD is requiring Mayberry Homes, Inc. to develop houses for families earning below 120% Area Median Income (AMI), with at least 25% of the projects earmarked for families earning below 50% AMI. 

 

The City’s participation in this project will contribute to the goal of expanding sustainable homeownership opportunities for low-income families in the Houston Area.

 

No fiscal note is required on grant items. 

The Housing and Community Affairs Committee reviewed this item on March 19, 2019.

 

___________________________________

Tom McCasland, Director

Prior Council Action:
 8/22/2018, (O) 2018-655
Amount and Source of Funding:

$718,887.81 Federal Government - Grant Funded (5000) - previously approved by Ord. 2018-655

Contact Information:

Roxanne Lawson

(832) 394-6307


ATTACHMENTS:
DescriptionType
Cover SheetSigned Cover sheet