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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 9/22/2020
District C
Item Creation Date: 3/2/2020
HCD20-41 Light Rail Lofts - 4600 Main Street Amendment (HOME)
Agenda Item#: 8.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing amendment to Loan Agreement between City of Houston and CANTWELL-ANDERSON, INC, joined by 4600 MAIN STREET HOUSING, L.P., which provides for a loan of funds for an office building at 4600 Main Street in Houston, Texas to be redeveloped into a 56 unit affordable housing community, to reflect design, budget and financing changes required to complete the development of the community - DISTRICT C - KAMIN |
| | | | | | | | Background:
The Housing and Community Development Department (HCDD) recommends Council approve an Ordinance authorizing an amendment to the loan agreement between the City and Cantwell-Anderson, Inc. (Borrower), joined by 4600 Main Street Housing, L.P (Owner) which provides for a loan of up to $1,500,000.00 in HOME funds for reconstruction of an office building located at 4600 Main Street across from the light rail line into a three-story affordable housing community consisting of 56 studio units. No new funding is being provided by the City of Houston.
On August 23, 2017, City Council passed an ordinance authorizing the loan agreement. After approval, rising construction costs caused a gap in financing, and delayed the closing of the City’s loan. The third-party tax credit financing anticipated by the loan agreement is being replaced by a commercial bank loan and a loan through the Harris County Community Services Department which will utilize a portion of their allocation of Community Development Block Grant Disaster Recovery (DR17) funds.
The amendment to the loan agreement will extend the closing and construction related deadlines and will reflect the changes to the budget and to the third-party funding.
Cloudbreak Houston LLC, an affiliate of Borrower and Owner, has developed other projects with the City of Houston such as Midtown Terrace Apartments and Travis Street Plaza Apartments. This loan agreement requires that 13 units in the project be subject to a 20-year affordability period.
Total funding for Light Rail Lofts is proposed as follows:
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Sources:
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Uses:
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Harris County (DRHarvey)
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$ 9,546,947.00
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Hard Cost
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$10,221,166.00
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Conventional – Amegy Bank
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$ 2,983,915.00
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Soft Cost
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$ 2,494,355.00
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City of Houston CDBG
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$ 1,964,143.00
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Acquisition Cost
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$ 2,315,618.00
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City of Houston HOME
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$ 1,500,000.00
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Developer Fee
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$ 1,141,872.00
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Equity
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$ 344,000.00
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Reserves
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$ 165,994.00
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Total Source of Funds:
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$16,339,005.00
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Total Project Cost:
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$16,339,005.00
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Tom McCasland, Director |
| | | | | | | | Prior Council Action:
8/23/17 (O) 2017-658
4/24/13 (O) 2013-357 |
| | | | | | | | Contact Information:
Roxanne Lawson
Phone: (832) 394-6307 |
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