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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 11/8/2017
District D
Item Creation Date: 10/31/2017
HCD17-101 Implementation of Provisions to Use Section 108 Loan Funds
Agenda Item#:
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Summary:
ORDINANCE pursuant to and implementing the provisions of Ordinance No. 2017-168, approving and authorizing the City to borrow from the United States Department of Housing and Urban Development (“HUD”) $5,062,000.00 of loan funds provided under Section 108 of the Housing and Community Development Act of 1974 (“Section 108”); appropriating $5,062,000.00 of Section 108 Funds and allocating $8,800,000.00 of Economic Development Initiative Grant Funds to fund the purchase of approximately 9.177 acres of land out of the G.P. Foster Survey, Abstract No. 273, Harris County, Texas, for a purchase price of $13,850,000.00 and related closing costs of $12,000.00; approving and authorizing a contract for loan guarantee assistance, a promissory note, and related documents between the City of Houston and HUD relating to the loan of the Section 108 Funds - DISTRICT D - BOYKINS
Background:
The Housing and Community Development Department (HCDD) requests City Council approval of an Ordinance implementing provisions of Ordinance No. 2017-168, approving and authorizing the City to borrow $5,062,000 in Section 108 Loan Funds from the United States Department of Housing and Urban Development (HUD), and to allocate $8,800,000 in Economic Development Initiative (EDI) Funds to fund the purchase from Houston Community College (HCC) of approximately 9.177 acres of land located at the NE Corner of HWY 288 and N MacGregor (the "Property") at a purchase price of $13,850,000 and related closing costs of $12,000. HUD has now approved the City's application to borrow the Section 108 Loan Funds and to allocate the EDI Funds for the purchase of the Property. This Ordinance will approve and authorize a contract for loan guarantee assistance, a promissory note, and related documents between the City and HUD for the Section 108 Loan Funds.
On March 8, 2017, by Ordinance No. 2017-168, the City Council authorized the submission of applications to HUD for the use of Section 108 and EDI Funds to fund the purchase of the Property and approved the related Purchase and Sale Agreement between the City and HCC.
On October 18, 2017 City Council approved Ordinance No. 2017-809 for a lease and development agreement between the City and the Houston Housing Finance Corporation (HHFC), which will become effective at time of closing. HHFC will be sub-leasing to HEB, which has committed to the construction of a full-service grocery store.
HCDD respectfully requests City Council approval of this Ordinance, which is required in order for the City to access the Section 108 Loan Funds.
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Tom McCasland, Director
Prior Council Action:
3/8/2017, (O) 2017-168
10/18/2017, (O) 2017-809
Amount and Source of Funding:
$5,062,000.00 - Section 108 Loan - Fund 5000
$8,800,000.00 - Economic Development Initiative (EDI) - Fund 5000
Contact Information:
Roxanne Lawson
832.394.6307
| ATTACHMENTS: | | Description | Type | | Cover Sheet | Signed Cover sheet |
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