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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 12/19/2023
District D
Item Creation Date:
HCD23-124 Garver Heights Loan Agreement Amendment
Agenda Item#: 37.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing amendment to Loan Agreement between City of Houston and COLE KLEIN BUILDERS, LLC to increase the Uptown TIRZ Series 2021 Affordable Homes Funds for construction of the infrastructure of a single-family developments to be located in Southeast Houston and replacing the senior lender - DISTRICT D - EVANS-SHABAZZ |
| | | | | | | | Background:
The Housing and Community Development (HCD) Department recommends Council approval of an Ordinance authorizing an Amendment to the Loan Agreement between the City of Houston (City) and Cole Klein Builders, LLC (Cole Klein) changing the senior lender to Amerant Bank, N.A. and adding an additional $1,000,000.00 of Uptown TIRZ Series 2021 Affordable Homes Funds (Fund 2430) from the City to finance the infrastructure for a single-family development to be located at Martindale Road and Carson Road. This project will be administered by HCD’s Single Family Division’s Affordable Home Development Program (AHDP) with the aim of increasing affordable single-family homeownership opportunities for households earning up to 120% of the Area Median Income (AMI).
This project was previously approved by Ordinance No. 2023-642 in the amount of $3,100,000.00 for infrastructure construction of 200 single-family homes, including 60 affordable homes and 140 market rate homes in the Mintex area of Southeast Houston. Due to current market conditions, the Developer is requesting a change in lenders to obtain economically advantageous financial options. Also, due to increased infrastructure costs and a surge in construction financing, the Developer will utilize the additional funding to help defray these increases and move the Garver Heights development forward.
This project is aligned with the City’s efforts to invest in creating affordable housing opportunities for homebuyers in desirable neighborhoods throughout the city.
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Development
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Neighborhood
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Total Homes
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Affordable Homes
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Target AMI Levels
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Unit Mix
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Sales Price
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Garver Heights
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Gulfgate/Hobby Area
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200
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60
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70% - 120%
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3-4 bedrooms
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$259K-$359K
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Zuri Gardens funding will remain unchanged at $2,110,000.00 while the Garver Heights funding will increase from $990,000.00 to $1,990,000.00. The total funding for this Agreement will increase from $3,100,000.00 to $4,100,000.00.
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Sources
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Amount
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Uses
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Amount
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Uptown TIRZ - Series 2021 (Fund 2430)
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$1,000,000.00
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$990,000.00 (Approved by Ord. No. 2023-642)
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Land Acquisition
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$5,820,000.00
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Equity/Land Value
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$5,820,000.00
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Pre-development
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$600,000.00
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Developer Funds
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$497,147.00
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Construction
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$5,308,852.50
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Garver Debt Facility
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$5,234,570.00
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Soft & Carrying Costs
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$1,812,864.50
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Total
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$13,541,717.00
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Estimated Total
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$13,541,717.00
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Fiscal Note:
No significant Fiscal Operating impact is anticipated as a result of this project.
The Housing and Community Affairs Committee Chair was briefed on this item on November 8, 2023.
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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, 08/09/2023 (O) 2023-642 |
| | | | | | | | Amount and Source of Funding:
$1,000,000.00 - Uptown TIRZ Series 2021 Affordable Homes Fund (2430)
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| | | | | | | | Contact Information:
Roxanne Lawson
(832) 394-6307 |
| ATTACHMENTS: | | Description | Type | | Cover Sheet | Signed Cover sheet |
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