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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 10/29/2024
District G
Item Creation Date: 7/3/2024
HCD24-65 The Rushmore
Agenda Item#: 17.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing Loan Agreement between City of Houston and HTG RUSHMORE, LLC. to provide Home Investment Partnerships Program Funds towards Construction and Acquisition Costs for new multifamily apartment development to be known as The Rushmore, located at 800 Highway 6 South, Houston, TX 77079 - DISTRICT G - HUFFMAN |
| | | | | | | | Background:
The Housing and Community Development Department (HCD) recommends Council approval of an Ordinance authorizing $3,000,000.00 of HOME Investment Partnerships Program (HOME) funds, for an Agreement between the City of Houston (City) and HTG Rushmore, LLC towards the construction and acquisition costs for a new multifamily apartment development to be known as The Rushmore, located at 800 Highway 6 South, Houston, TX 77079.
HTG Rushmore, LLC plans to develop new construction of a 101-unit, mixed-income apartment complex serving low-to moderate-income families. The development will be situated on approximately 3.47 acres at 800 Highway 6 South, Houston, Texas 77079, in Council District G. This new development will be a National Green Building Standard certified multifamily rental community.
The Rushmore will consist of 32 one-bedroom/one-bathroom units, 50 two-bedroom/two-bathroom units, and 19 three-bedroom/two-bathroom units with 179 surface parking spaces. The development team proposes to restrict 41 units to qualifying residents earning at or below 60% Area Median Income (AMI), 35 units to residents earning at or below 50% AMI, and nine units to residents earning at or below 30% AMI. The remaining 16 units will be reserved as market-rate units.
The loan and affordability period will be 20 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 the available cash flow.
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Sources
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Amount
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Uses
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Amount
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9% Housing Tax Credit
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$15,005,999.00
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Hard Costs
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$21,180,394.00
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City of Houston (HOME)
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$3,000,000.00
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Acquisition
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$3,280,000.00
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Conventional Loan
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$7,811,000.00
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Soft Costs
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$5,819,611.00
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Harris County ARPA funds
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$5,975,000.00
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Reserves
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$321,653.00
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In-Kind Equity/ Def. Developer Fee
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$752,649.00
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Developer Fee
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$2,317,990.00
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Private Loan / Grant
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$375,000.00
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Total Source of Funds:
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$32,919,648.00
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Total Project Cost:
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$32,919,648.00
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Fiscal Note:
No Fiscal Note is required on grant items.
This item was reviewed by the Housing and Community Affairs Committee on August 26, 2024.
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Michael Nichols, Director |
| | | | | | | | Amount and Source of Funding:
$3,000,000.00
Federal Government - Grant Funded
Fund 5000 |
| | | | | | | | Contact Information:
Roxanne Lawson, Division Manager
Housing and Community Development Department
Phone: (832) 394-6307 |
| ATTACHMENTS: | | Description | Type | | Cover Sheet | Signed Cover sheet |
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