ORDINANCE approving and authorizing Loan Agreement between City of Houston and NHPF CAROLINE CONDUIT, LLC, a Nonprofit Partner of MAGNIFICAT HOUSES, INC, joined by the NHP FOUNDATION, to provide a Grant of $18,656,631.00 of Community Development Block Grant – Disaster Recovery 2017 Funds for the land acquisition and/or new construction of 3300 Caroline Street, a permanent supportive housing community for homeless persons, in the vicinity of 3300 Caroline Street, Houston, Texas 77004 - DISTRICT D - EVANS-SHABAZZ

TAGGED BY COUNCIL MEMBERS EVANS-SHABAZZ, THOMAS, CASTEX-TATUM and PLUMMER

This was Item 15 on Agenda of August 17, 2022

The Housing and Community Development Department (HCDD) recommends Council approval of an Ordinance authorizing a Loan Agreement between the City of Houston (City) and NHPF Caroline Conduit, LLC (Borrower), and Magnificat Permanent Affordable, LLC (Owner), to provide an $18,656,631.00 Community Development Block Grant - Disaster Recovery 2017 (CDBG-DR17) grant for the new construction of a permanent supportive housing community for the homeless located at 3300 Caroline Street, Houston, TX 77004.  

Since 1968, MHI has offered an alternative to the streets by providing shelter, meals, a sense of community and guidance toward a brighter future. 3300 Caroline Street will be a four-story elevator-served building consisting of 149 efficiency apartments, shared space for supportive programs and office space for MHI staff. With an anticipated Housing Assistance Payment (HAP) subsidy contract from the Houston Housing Authority, all residents will pay no more than 30% of their monthly adjusted income in rent.

Conveniently located in Midtown, 3300 Caroline Street is a transit-oriented development within walking distance to light rail and several major bus lines, thus enabling access to key neighborhood services and employment opportunities. The development will provide residents with a safe, quality, supportive place to call home in their neighborhood.

3300 Caroline Street is funded through CDBG-DR17 program funds awarded by the United States Department of Housing and Urban Development, through the Texas General Land Office to provide affordable rental units for low- to moderate-income households in accordance with the City’s Harvey Multifamily Program Guidelines.

The City of Houston loan term and affordability period will be 40 years and will commence when the construction period is completed. Funding for 3300 Caroline Street will be as follows:

No Fiscal Note is required on grant items.

This item was reviewed by the Housing and Community Affairs Committee on April 19, 2022.

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Keith W. Bynam, Director

$18,656,631.00 Federal State Local - Pass Through Fund (5030)

Roxanne Lawson

(832) 394-6307