ORDINANCE approving and authorizing Loan Agreement between the City of Houston and FIFTH WARD COMMUNITY REDEVELOPMENT CORPORATION to provide $2,000,000.00 of Federal Community Development Block Grant Funds to assist with renovation of a 165 unit Affordable Seniors Housing Community located at the intersection of Lyons Avenue and Pannell Street in Houston, Texas; approving and authorizing an amendment, modification and Assumption Agreement among the City of Houston, PLEASANT HILL COMMUNITY DEVELOPMENT CORPORATION, PLEASANT HILL COMMUNITY APARTMENTS, L.P. and PLEASANT HILL SENIORS, 165, L.P. pertaining to a prior loan of $757,000.00 for costs related to the construction of the foregoing project - DISTRICT B - DAVIS

The Housing and Community Development Department (HCDD) proposes to fund $2,000,000 for a portion of the renovation cost of the Pleasant Hill Village Apartments, a 165-unit senior’s facility in the 5^th Ward.

In June, 1996, City Council approved an Ordinance authorizing a Loan Agreement for $670,000 in CDBG funds for the construction of a 165-unit community for senior citizens. City Council subsequently approved an amendment to increase the loan to $757,000. Of the 165 units, 52% (85 units) are restricted at affordable rents for low-income Houstonians. 

On February 14, 2014, City Council provided a one-year extension to the loan term and the affordability period, and a subsequent action extended the loan term to October 29, 2015 and the affordability period to September 1, 2016.  The modification requested in this RCA includes a new payoff structure and a 30-year extension of the existing loan.

The owner has requested new funding to renovate the property as part of a 4% tax credit project. HCDD believes that this property is pivotal to revitalization activity in the Fifth Ward and proposes to provide a $2,000,000 loan in conjunction with a modification of the existing indebtedness (which was an interest bearing, cash flow loan).  The existing debt would be repaid as follows.

1. Owner will reduce the outstanding principal balance of $757,000 by paying $150,000 at closing.
2. The loan will be extended for an additional 30 years beyond completion of the renovation project.
3. The remaining principal ($607,000) will be paid to the City in equal installments of $2,500 per month.
4. When the owner sells or refinances the property, proceeds will be used to pay off the then-current principal balance, plus accrued interest ($548,000), to the extent funds are available.

Funding of the property renovation will be provided as follows:

This item was reviewed by the Housing and Community Affairs Committee on October 20, 2015.

6/28/96 Ord. 96-680

2/12/14 Ord. 14-111

11/12/14 Ord. 14-999

$2,000,000 Community Development Block Grant

Roxanne Lawson

832.394.6282

Juanita Moore

832.394.6210