The Housing and Community Development Department (HCD) recommends Council approval of an Assignment by The Men’s Center Incorporated, a Texas nonprofit corporation, now known as recenter ("recenter"), to and assumption by, The Harris Center for Mental Health and Intellectual and Developmental Disabilities, a Community Center and Agency of the State of Texas (Harris Center), of all of recenter’s rights and obligations under an existing loan (Loan) made by the City of Houston to Recenter. No additional City funding will be required for this action.
The Loan to recenter closed on July 27, 2011, and provided $3,000,000.00 of HOME funds that were used to pay construction costs associated with property located at 1104 Alabama St., Houston, Texas (Property). Construction on the Property was completed on July 9, 2015. The Loan required restricting a portion of the Property as affordable housing for a period of 20 years. Upon completion of construction, recenter operated the Property as a homeless housing program.
Upon completion of construction, recenter operated the Property as a homeless housing program. Then, on April 22, 2024, recenter elected to enter into a management agreement with Harris Center wherein Harris Center agreed to take over operations of the homeless program services at the Property. Therefore, pursuant to Ordinance No. 2024-264, approved by City Council on April 24, 2024, City Council approved a funding agreement between the City and Harris Center in the amount of $750,000.00 to fund Harris Center’s services at the Property.
The recenter additionally agreed to sell the Property to Harris Center. In conjunction with this sale, Harris Center will assume recenter’s obligations to the City pursuant to the Loan. In conjunction with the sale, Harris Center requested that the City consent to certain modifications to the existing usage restrictions originally imposed on the Property at the closing of the Loan.
The City and Harris Center agreed that the number of restricted units will be reduced from 31 to 24; provided, that all 64 units be restricted to persons earning 60% of the Area Medium Income (AMI) or less. In addition, the restricted units may be used by individuals and families suffering from both homelessness and behavioral health issues.
Established in 1965, The Harris Center’s mission is “to transform the lives of people with behavioral health and IDD needs.” Amongst the supportive services provided, Harris Center provides a wide array of housing services including homeless outreach, rehabilitative support, placement assistance, permanent supportive housing and crisis support for adults who are behaviorally ill. The Harris Center also provides outreach services through their current Projects for Assistance in Transition from Homelessness program.
This item was reviewed by the Housing and Affordability Committee on October 15, 2024.
________________________________
Michael Nichols, Director