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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 11/29/2022
District B
Item Creation Date: 6/14/2022
HCD22-46 Oracle Mansfield Development
Agenda Item#: 18.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing Loan Agreement between City of Houston and RZ ENTERPRISES USA dba ORACLE CITY HOMES LLC to provide a loan in Uptown TIRZ Series 2021 Affordable Homes Funds, to finance the infrastructure for a single-family development to be located in Acres Home Complete Community - DISTRICT B - JACKSON |
| | | | | | | | Background:
The Housing and Community Development Department (HCDD) recommends Council approval of an Ordinance authorizing an agreement between the City of Houston (City) and RZ Enterprises USA, Inc. to provide a loan of $7,465,500.00 in Uptown TIRZ Series 2021 Affordable Homes Funds to finance the infrastructure needed to construct affordable single-family homes. This project will be administered by the HCDD’s Large Tract Division’s Affordable Home Development Program (AHDP) to increase affordable single-family homeownership opportunities for households earning between 60% and 120% of the Area Median Income (AMI). The proposed Oracle Mansfield developments will be located at 1538-1658 W. Tidwell Street, 0 Mansfield Rd., 0 Paul Quinn St., and 1236 Bland Street Houston TX 77091, in the Acres Homes Complete Community.
The vacant raw land must undergo horizontal and vertical construction to prepare the lots for new construction. RZ Enterprise USA, Inc. will build 189 single-family homes, which will include 117 homes targeting households whose income is 90% to 120% AMI. The remaining 72 properties will be market-rate homes. The development’s home designs have a mix of two- and three-bedroom single-family attached and detached homes.
The loan agreement is a maximum of five years, beginning from the date of the closing of the transaction and ending on the earlier of December 31, 2023, as may be extended by HCDD, but in no event longer than five years, or the date all affordable homes have been sold to homebuyers. The affordability period on these homes will be five years commencing when the sale and City loan to the homebuyer has closed. The loan will be non-amortizing throughout the construction period. The City’s Deed of Trust is to be fully released upon closing the sales of 117 affordable homes and closing the respective City loans to homebuyers. Partial releases of the City’s Deed of Trust securing the construction loan will be provided as the lots are sold. This project is aligned with the City’s efforts to invest in creating affordable housing opportunities for homebuyers in desirable Houston neighborhoods.
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Sources
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Amount
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Uses
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Amount
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TIRZ – Bond (COH HCD)
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$7,465,500.00
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Land Acquisition
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$4,939,000.00
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Home Sales
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$55,307,720.00
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Site Work
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$6,262,000.00
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Hard Construction Costs
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$41,567,100.00
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Soft Costs
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$7,175,280.00
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Developer Fee
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$2,829,840.00
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Estimated Total
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$62,773,220.00
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Estimated Total
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$62,773,220.00
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Fiscal Note:
No significant Fiscal Operating Impact is anticipated as a result of this project.
This item was reviewed by the Housing and Community Affairs Committee on June 21, 2022.
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Keith W. Bynam, Director |
| | | | | | | | Prior Council Action:
05/05/2021 (O) 2021-354
09/01/2021 (O) 2021-756
11/10/2021 (O) 2021-973 |
| | | | | | | | Amount and Source of Funding:
$7,465,500.00
Uptown TIRZ Series 2021 Affordable Housing Fund
Fund 2430 |
| | | | | | | | Contact Information:
Roxanne Lawson, Division Manager
Housing and Community Development Department
Phone: (832) 394-6307 |
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