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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 12/19/2023
District B
Item Creation Date: 6/27/2023
HCD23-78 St. Elizabeth Place 3rd Amendment
Agenda Item#: 33.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing first amendment to amended and restated Loan Agreement and other Loan Documents related to Loan Agreement between City of Houston and FIFTH WARD COMMUNITY REDEVELOPMENT CORPORATION approved pursuant to Ordinance No. 2020-548 for Acquisition and Construction of St. Elizabeth Place, located in the vicinity of 4514 Lyons Avenue, as an 85-unit affordable rental housing community |
| | | | | | | | Background:
The Housing and Community Development Department (HCD) recommends Council approval of an Ordinance authorizing an additional $1,344,404.00 in Hurricane Harvey Community Block Grant Disaster Recovery (CDBG-DR17) funds for the rehabilitation of St. Elizabeth Place. This brings the total loan amount between the City of Houston (City) and Fifth Ward Community Redevelopment Corporation to $17,796,800.40. The additional funds will be used to subsidize unexpected cost increases of materials, labor costs, and other project-related expenses due to ongoing market inflation of construction materials.
St. Elizabeth Place offers proximity to employment centers and access to public transportation. The total project development cost of $36,413,442.40 will add affordable apartment units and contribute to the revitalization of the Lyons Avenue Corridor in Fifth Ward. The development will consist of 85 total units, including 25 efficiencies, 51 one-bedroom units, and nine (9) two-bedroom apartment units. The City will restrict 51% (44) of the units for low- to moderate-income households earning below 80% of the Area Median Income.
The loan and affordability period will be 40 years and will commence when the construction period is completed. The loan will be non-amortizing throughout both the construction and affordability period. Following project completion, the outstanding principal balance of the note shall accrue at 1% interest. The borrower will pay an annual installment of interest from available cash flow.
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Uses
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Amount
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City of Houston Supplement Request CDBG-DR17
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$1,344,404.00
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Hard Cost
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$20,789,900.40
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City of Houston CDBG-DR17
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$10,174,622.00
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Soft Cost
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$7,660,312.00
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City of Houston CDBG-DR2
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$6,277,774.40
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Acquisition Cost
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$4,427,269.00
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Conventional Loan
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$6,753,900.00
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Developer Fee
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$3,041,509.00
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Federal Historic Tax Credits
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$4,152,228.00
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Reserves
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$494,452.00
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Cash Equity
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$1,788,191.00
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State Historic Tax Credits
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$5,922,323.00
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Total Source of Funds:
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$36,413,442.40
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Total Project Cost:
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$36,413,442.40
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Fiscal Note:
No Fiscal Note is required on grant items.
The Housing and Community Affairs Committee Chair was briefed on this item July 12, 2023.
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Keith W. Bynam, Director |
| | | | | | | | Prior Council Action:
06/24/2020 (O) 2020-548
06/02/2021 (O) 2021-441
06/22/2022 (O) 2022-478 |
| | | | | | | | Amount and Source of Funding:
$1,344,404.00 Federal State Local - Pass Through Fund (5030) |
| | | | | | | | Contact Information:
Roxanne Lawson
(832) 394-6307 |
| ATTACHMENTS: | | Description | Type | | Cover Sheet | Signed Cover sheet |
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