Timeline for Huntington at Bay Area Project

Timeline for Huntington at Bay Area Interest in any deal named Huntington 1 Jan 26, 2021: Email with Memo to MST from TMc with cc to Marvalette Hunter and Andy Icken

• •

Memo recommends Huntington at Bay Area for a Resolution of Support even though it requires $15 million in additional funding which we had communicated we would not provide. Memo does not recommend Huntington at Witte in District A.

2 Feb 9, 2021: Email with attachments for weekly HCDD meeting to MST from TMc with cc to Marvalette Hunter and Andy Icken • • •

Memo recommends Huntington at Bay Area for a Resolution of Support even though it requires $15 million in additional funding which we had communicated we would not provide. Memo does not recommend Huntington at Witte in District A. Agenda indicates that department will recommend Willow Chase Apartments for support based on superior site demographics and the family designation following HUD-reviewed HCDD policy.

Feb 9, 2021: MH calls TMc and directs to include Huntington at Witte rather than Willow Chase Apartments 3 Feb. 9, 2021: Email from M. Crinejo to T. McCasland.

•

First attachment does not list Huntington at Witte for a Resolution of Support

4 Feb 9, 2021: Email from Marta to CMs •

Revised Resolution of Support in Attachment to HCD adds Huntington at Witte

5 Feb 11, 2021: Email from TMc to MH

•

Confams Huntington at Witte drew opposition letter; requests permission to add Willow Chase

5 Feb 12, 2021: Email from MH to TMc stating "You can proceed with the substitution."

Creation of a funding opportunity for Huntington

NOFA=Notice of Funding Availability, which is an open, competitive grant making process. It is not a procurement. 6 May 12, 2021: Email with attachments (including multifamily update) for HCD weekly meeting from TMc to MST with cc to Marvalette Hunter and Andy Icken

•

Briefing on unrelated development and limited remaining multifamily funds from Harvey.

May 13-19, 2021: MH calls TMc and asks us to take another look at Huntington at Bay Area to fund it. • • • •

Explained why we didn't issue a NOF A due to GLO litigation Stated that we had consistently told developers that we were not going to provide additional funding in this tax credit round MH inquires what possible somces are available to fund TMc indicated that GLO will require a competitive NOF A

7 May 20, 2021: Email from MH to TMc directing issuance ofNOFA, movement of funds and misrepresenting my recommendation.

8 May 31, 2021: Andy emails MH with cc to TMc, RM, and MST, but addresses MH/MST stating reasons to

reconsider issuing NOFA 9 Jun 1, 2021: Email response from MH: "We will move forward with a NOFA and can place parameters on it to ensure that we maximize the funding. I agree that it is not much and will likely go fast."

Jun 1, 2021: Competitive grant application process or Notice of Funding Availability (NOFA) opens Jun 7, 2021: Huntington at Bay Area submits its application Overturning staff recommendation to provide Huntington $15 million 10 Aug 17, 2021: Email with attachments (including Draft Memo-Multifamily NOF A) for weekly HCD meeting from TMc to MST with cc to Marvalette Hunter and Andy Icken

• • • •

Draft memo is from Ray Miller to TMc and recommends five deals, waitlists two deals as standbys, and does not recommend funding Huntington at Bay Area MST asks explicitly why Huntington didn't get recommended TMc states large ask and senior deal MST asks when we last did a deal in District E

11 Aug 24, 2021: Email with attachments (including revised Draft Memo-Multifamily NOFA) for weekly HCD meeting from TMc to MST with cc to Marvalette Hunter and Andy Icken

• • • • • • •

Draft memo is from Ray Miller to TMc and recommends five deals, waitlist two deals as standbys, and does not recommend funding Huntington at Bay Area Memo's revisions adds how many units are affordable (LMI) and how much the City is paying per affordable unit TMc discussed cost per affordable unit explicitly MST asks again when we last funded a development in Dist E Ray Miller references Kingwood Senior Village as the last deal When MST asks why we wouldn't prioritize District E, TMc responds that it is a pro, but this deal has extraordinary cost MST responds that Huntington will be a priority for him

12 Sep 1, 2021: Email with attachments (including revised Draft Memo-Multifamily NOFA) for weekly HCD meeting from TMc to MST with cc to Marvalette Hunter and Andy Icken

• •

Memo revised as directed by MST to show immediate awardees as Huntington and New Hope There is no staff or HCD recommendation for the two immediate awardees

13 Sep 1, 2021: Email from me to Ray Miller with cc to Derek Sellers indicting MST had directed to move

forward with announcing Huntington at Bay Area 14 Sep 17, 2021: Email from TMc to MST reiterating staffs business objections to Huntington 15 Sep 17, 2021: Email from MST to TMc stating both:

• •

We have had detailed conversations about Huntington AND "Much of what" I put in my email was new information and thus puzzling to him

16 Sep 21, 2021: Press release issued as directed by the Mayor and Marvalette Hunter

Summary of Narrative

With today's press release, the administration is bankrolling a specific developer to the detriment of working families needing affordable homes.

Documents 1-5: Interest in any deal named Huntington

• •

•

While no harm was done, the administration's direction to support Huntington at Witte indicated an interest in developments named Huntington that dates to nine months ago. Even though following the administration's direction violated our policy, I knew that Huntington at Witte was about to receive an opposition letter that would prevent it from moving forward. For that reason alone, I added the deal at the direction of the administration knowing that doing so would have no impact on funding decisions and that I could hopefully swap out that deal before City Council voted. City Council never voted on the list that included Huntington at Witte.

Documents 6-9: Creation of a funding opportunity for Huntington

• • • • • •

Huntington at Bay Area needed a funding opportunity to keep the TD HCA from ldlling it in the underwriting process. Because it had a $15 million funding gap, it was about to be eliminated. Marvalette calls to ask how we can give the necessaty funding to Huntington. I explained in detail why our funding goes through a competitive process and is not simply given to a developer. She asks whether and how we could rnn this competitive process Using funding discussions relating to another development, she then directs me to move sufficient funding to fund $15 million and open the NOFA or competitive application process Four business days after NOFA opens, Huntington applies just in time to meet TD HCA deadline to keep it from being eliminated.

Documents 10-15: Overturning staff recommendation to provide Huntington $15 million

• • • • • • •

Despite know that this NOF A was created to fund $15 million to Huntington, staff appropriately treats the NOF A as the competitive application process that it is. On two occasions, we put the recommended deals in front of the Mayor in writing and provide the basis for our recommendations. Rather than addressing the significant concerns with Huntington, the Mayor latches onto the only pro we listed for the development, which was its geographic location in District E. A family development in District E zoned to quality schools is something we would celebrate. One more senior deal in District Eis not significant from a fair housing perspective. In a last-ditch effort to avoid the charade of a predetermined competitive application process, I email the Mayor again reiterating why the deal is not good for Houston and families in need of affordable homes. Mayor responds that while we have had detailed conversations, much of what I am telling him about the bad business tenns is brand new and puzzling to him. Marvalette directs me to issue the press release.

Conclusion

•

•

I am not alleging fraud. I do not know whether fraud has occurred, and it is not my job to investigate whether it has occurred. My job is to administer the programs in a manner that can withstand scrutiny, address Houston's affordable housing crisis, and support the best interest of the taxpayers. I am alleging that the documents I have provided support the following conclusions: 1. The business te1ms of this deal has not been supported by the Mayor. The Mayor will want the conversation to focus only on this point-simply a disagreement between me and him on whether this development should move forward. If that was the only problem, I could resign quietly and move on. 2. The style of management by this administration has repeatedly been "do it because I say so." In fact, I have previously tendered my resignation to the Mayor specifically because of this style of management. The Mayor will say he has the legal right to direct staff simply because he says so because he is the Mayor. Within the bounds of the law, he is absolutely correct that he has that right. However, you should be concerned about this style of management because while it is not fraud, the lack of transparency, the lack of dialogue, and the failure to address staff recommendations in a "do it because I say so" culture creates the breeding grounds where fraud goes undetected. Furthermore, you cannot attract and you will not keep the best directors and the best senior team members in this culture. 3. Finally, and this is the straw that broke my back, I cannot support Huntington at Bay Area without participating in what I know is a charade of a competitive process when the outcome of that process was predetermined before the funding opportunity was even issued.

•

Why I am briefing you and what I need from you. 1. I know I serve at the Mayor's pleasure. That means he can fire me. It does not mean I am his puppet. 2. If and when I am fired, I need your support of my very strong team. They do not need me here to continue their good work. But there are several similar developments where the administration is pushing deals or developments and making decisions that will negatively impact the City well beyond this administration's tenure. There is also at least one other instance where there has been continuous pressure to take unethical action-pressure that to date we have successfully pushed back on. 3. Finally, I need both you and the general public to be aware that the structure of a strong mayoral form of gove1mnent should not mean that the strong mayor is free from public or City Council scrutiny nor should it mean that the strong mayor has free reign to make decisions without providing legitimate justifications for those decisions.

Document 1

Mccasland, Tom - HCD From:

Sent: To:

Cc:

Subject: Attachments:

Mccasland, Tom - HCD Tuesday, January 26, 2021 6:06 PM Sylvester Turner - MYR Hunter, Marvalette - MYR; lcken, Andy - MYR; 'Sellers, Derek - HCD (Derek.Sellers@houstontx.gov)'; 'Miller, Ray - HCD (Ray.Miller@houstontx.gov)' Draft memo of 9% Tax Credit Applications Memo - (Draft) 2021 9% HTC Applications.pd!

Mayor, Our meeting was cancelled this morning due to Housing Committee, so I am sending the attached briefing memo from Ray Miller given the short time line for tax credit applications. The first 4 pages provide the main content, and the last two pages are excel spreadsheets providing backup documentation. Here is the summary: • We received 49 applications for letters of support • We are recommending 26 developments inside the City and 1 development in the ETJfor support • Every district except for District K has at least one supported development. (Last year it was every district except for District E). • District Eis the only other District that has lower than the maximum allowed under the Department's policy for the District. This fact is a good indication that our policy around equitable distribution is working, by having every District share a relatively equal number of new developments. • Districts C & H both have one supportive housing development, which accounts for why they are both one higher than the max. • You will recall that per our policy, Districts with a max of 2 are already overrepresented in affordable housing developments. Districts with a max of 3 are underrepresented in affordable housing developments. Timeline: Jan. 29: Make recommendations public to allow time for appeals Feb. 3: Present list to a specially called session of the Housing Committee Feb. 10 or 17: Target Council Date (Feb. 17 gives us a tag week, but not a "cleanup" week in case there are changes due to appeals or other reasons.) Feb. 26: Target submission date to TDHCAto be complete by March 1. Here are a few additional items: • We have asked all developers not to rely on any funding from the City, which most have done. • We anticipate our region will receive 10 tax credit awards. Based on initial scoring, 9 will likely come to the City and one will go to the County in the ETJ. Ray and I are both available to answer any questions you or the Chief may have. Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282 1

Interoffice

CITY OF 1/0tJS TON

HOUSING AND COMMUNITY DEVELOPMENT

Memo

Date: January 23, 2021

To:

Tom Mccasland Director

From:

Ray Miller Assistant Director

Subject:

2021 Resolutionsfor 9% HousingTax Credit ApplicatiQ!]S

This memo is a summary of applications eligible for a resolution ofsupport required for 9% Housing Tax Credits applications submitted to the Texas Department of Housi~tand Community Affairs. These recommendations will be posted on HCDD's website later this month and prese~ted to Housing Committee of February 2"d. The items presented to City Council during February 17th agenda to approve the following items:.

• •

26 applications located within the citylimits eligible for~ '.esolution of support 1 application located within the ETJeligible for a resolution,ofsupport O•

'•'•'

·:-.-:. :•c:··:c·': "

The list below is a list of eligible applications loc~\ed~ithinthe support.

.<.-.:,

city 1ii1fasthat are eligible for a resolution of

Council District

Target Population

Application Number

D~velQpnient Address

1

21091

1041 Conrad Sauer Dr

A

Elderly

2

21223

:1212 W Sam Houston Pkwy

A

Elderly

3

21133

3300 block of W Gulf Bank

B

Family

B

Family

C

Family

,,>;,

Parkway M~~dows

:·, .•·•···

Green Way Villas·•..

·\:·_-':N Sam Houston Pkwy & I·:,. 45 Frwy 6970 Portwest Dr

4

21183

5

21038

Houstpn 150 Bay9u Apartti1ents ..

6

21128

Fisher 511'~¢\~Partnients

909 Fisher St

C

Family

7

21001

Harvard StreeHofts

15 Harvard Street

C

Family

8

21292

Campanile at Minimax

SECof Minimax Dr and W Loop 610

C

Elderly

9

21210

Hebron Village Supportive Housing (PSH)

7350 Calhoun Rd

D

Supportive Housing

10

21035

Manson Place Apartments

D

Family

11

21020

Huntington at Bay Area

E

Elderly

12

21058

Evening Star Apartments

SWQ of ReevesSt & Scott St SEcorner of Bay Area Blvd & Seawolf Dr 11800 S Glen Dr

F

Elderly

I

>,

·····:

Page 1 of 4

13

21100

Hawthorn Terrace

3100 Hayes Rd

F

Elderly

14

21188

Dove Gardens

SWC of Westchase Way Dr & W Sam Houston Pkwy s

F

Elderly

15

21010

Maury Street Lofts

2918 Elysian St

G

Family

16

21137

Ella Grand

2077 S Gessner Rd

G

Elderly

17

21245

The Rushmore

800 Highway 6 South

G

Family

18

21010

Maury Street Lofts

2918 Elysian St

H

Family

19

21238

Jackson Hinds Garden

607 Thornton Rd

H

Supportive Housing

20

21011

William Booth Apartments

808 Frawley St

H

Elderly

I

Family

I

Family

.·

21

21132

OST Lofts

... •

'

5520 Old Spanish Trail '·

.··

..

22

21026

Vista at Park Place

NWC Park Place Blvd and ..· .. Juniper St ·' '··

23

21027

New Hope Housing at Ennis

1846 E.nnisSt

24

21131

Boulevard 61

6101 Richmond Ave

J -',. ', Family

25

21213

Fairways at Westwoo(l

9745 Bissonnet, ..··

J

Family

26

21006

Westheimer Garden Villas

5811 Winsome Lr\

J

Elderly

'

,, I

Elderly

· ... :

. .

The list below is a revised list of ejigible applicationslocated Within. the ETJeligible for a resolution of support.

•.< .. Application Number

20142

.· ..

__,

'

·.

\• Development Name

Development Address

.

Cole Creek Estates· 6850 block of Gessner --_, .... ·. __

·

County

Target Population

Harris

Elderly

.·.,...· ..

Applications may receive additidn~I points if is located in a distinct area that was once vital and has lapsed into a situation requiring concerted revitalization, and where a concerted revitalization plan has been developed and executed (Concerted Revitalization Area). Under HCDDstandards, these areas include identified revitalization areas identified under the dty's Complete Communities initiative or Tax Increment Reinvestment Zone (TIRZ). Eight applications have selected to receive a Priority Resolution . .

..

Application Number

Development Name

Development Address

21091

Laurel Terrace

1041 Conrad Sauer

21183

Greens Way Villas

21133

Parkway Meadow

21035

Manson Place Apartments

Dr At N Sam Houston Parkway and 1-45 3300 block of W Gulf Bank SWQ of Reeves St & Scott St

Council District

A B B D

Concerted Revitalization Area

TIRZ 17 - Memorial City TIRZ 11- Greater Greens point Acres Homes Complete Community Third WardComplete Community

Page 2 of 4

F

TIRZ 20 - Southwest Houston

Maury Street Lofts

SWC of Westchase Way Dr and W Sam Houston Pkwy S 2918 Elysian Street

H

21132

OST Lofts

5520 Old Spanish

I

Near Northside Complete Community TIRZ 7 - OSTAlmeda

21006

Westheimer Garden Villas

21188

Dove Gardens

21010

Trail

5811 Winsome Lane

J

TIRZ 1- St. George Place

A total of 48 applications for resolutions of support were received with ?7applications recommended for a resolution of support. Below is a summary of the remaining 21 applipi_\ions with a summary of their application status or why it is not recommended for a resolution of support

... ···•·••·····.,) ... District iar~\'I ·:·. ·•

Application Number

Development Address

Development Name

_':' ·•··

1 2

21019 21204

1106 Witte Rd

Conrad Saur

1221 Conrad Sauer

~•!'lily

Application is not located in a recognized CRA

Famil\'

Application is not located in a recognized CRA

5

21036

A*

Elderly

Application is not located in a recognized CRA

6

21224

B

Elderly

Withdrawn by Applicant

SECof Westpark or:•I. Campanile at Wakeforest ,,.. & Wakeforest Ave.

C

Elderly

Withdrawn by Applicant

Fairways at

C

Elderly

Preference for family transactions and applications in lower poverty areas

C

Elderly

Located in flood zone AE

C

Elderly

Located on flood zone AE

>\

21308

8

2129

A*

1006 Reclhaw s1: -c--.

;·:-,::,. ':,

•··

Dominion Terrace

Greenway

1024 Pln(\1]1\:>nt .

·.

· ..

·..'>>

.,:

7

A•·J

·•.

·•. 0 Breton St Houston . --·.-.·-. I Willm,vChase 1262 Conrad Sauer iAvenue . Square <... ,. Dr _ii

21016

.

.

Applica.tioh is not located in a recognized CRA

•·

.

4

.

Populati ·• on .. < Appli~ation is not located in a Elderly recognized CRA <

Elderly

SkyPark Ten

21237

·.

·•

..

3

.. ·· A*

Huntington at Witte

Notes

A* ·. ~

I/

I·.

Drive

I )723 sbuitwyest Fr!leway

,:, 1706 & 1718 W 26 St & 2505 Ella Blvd th ''>.'·.··•. Viveza ····•····• ·. I )400 W 20 St

9

21307

10

21314

11

21306

Camponile at West Dallas

1415 W Dallas St

C

Elderly

Withdrawn by Applicant

12

21012

Beall Village

4463 N MacGregor

D

Elderly

Withdrawn by Applicant

13

21226

Serenity Palms

5511 Griggs Rd

D

Family

Withdrawn by Applicant

14

21264

Acadia Terrace

6002 Rogerdale Rd.

F

Family

Preference for other applications based on HCDD criteria

Bellaza

I

Page 3 of4

--·~-

15

21134

Hartwood at Bellaire

11360 Bellaire Blvd

F

Family

Preference for other applications based on HCDD

16

21217

Mariposa Senior living

6706 Harrisburg

I

Elderly

Application requires additional financing

17

21041

Eada Crossing

3122 Leeland St

I

Elderly

criteria

Preference for family transactions

18

21195

Bisson net Street Lofts

9945 Bissonet St

J

Elderly

Withdrawn by applicant

19

21296

Plainfield Street Lofts

9638 Plainfield St

J

Family

Withdrawn by applicant

20

21253

Valiente

NWC Jeanetta St and Pagewood Ln

J

8411 Knight Rd

K

21

21280

* Districts

i

.

Knight Road Lofts

'·Family •·... ·...·

maximum

Elderly .

Withdrawn by applicant

the attached addendums for additional information and criteria for selection.

District

Applications

Limit*

Total Resolutions

A

8

2

2

B

2

2

··

C

9

D

5

E

1

~f.

F

5

3

..

2

'l

.

' '

·. .

4

..

', ,·2

2 ..

i

> ·.

3,_,_·..-

1 ..

G

3

H I

---.53

J

6

K

1

ETJ Outside City

1 0

---0

Total

48

29

s

3

3

.

3 3 ..

3 ···, ' '

3

3

3 .

.·.

:_.·

I

0

0

.

1

·... 0 ~

.

27

Applies to new construction and non-PSH

Housing Type

Total

Total

Resolutions

Applications

Supportive Housing

2

3

Family

12

19

Elderly

13

33

I

I

''

The charts below summarize the distribution of resolutions by council district and housing type. Please refer to

Total

I

Poverty rate exceeds

with a high concentration of affordable units. Applications in must be l,ocated in a CRA.

Council

I

Page 4 of 4

Document 2

Mccasland, Tom - HCD From: Sent: To:

Cc: Subject: Attachments:

Mccasland, Tom - HCD Tuesday, February 9, 2021 10:44 AM Sylvester Turner - MYR Hunter, Marvalette - MYR; lcken, Andy - MYR; Marquez, Veronica - MYR; Bonham, Brenda - MYR; Washington, Amanda - MYR Documents for HCD meeting 1 TMC MST agenda 2.9.21.docx; 2 ERAPOverview.docx; 3 HEDP grants flyer.pdf; 4 HEDP Grants 1-Pager.docx; 5 Council Agenda Memo for MST 020921.pdf

Mayor, Please see attached the documents for today's meeting. Thank you, Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282

www.houstontx.gov/housing

1

MST meeting with HCDD Febrnary 9, 2021 1. City/County Rental Assistance (see attached briefing and FAQ)

•

2.

3.

4. 5.

Timeline i. 2/9: Launch HoustonHarrisHelp.org with basic information about the program-webpage is live. ii. 2/10: Began working current list of 12,000 Houston applications immediately (these are families not served in that last round of rental assistance) iii. 2/18 Open new landlord registration on HoustonHarrisHelp.org iv. 2/24 First BakerRipley funding run to waitlist applicants v. 2/25 Open new tenant application on HoustonHmTisHelp.org (compliancerelated updates to old application) v1. 3/15 Launch new landlord functionality, including landlord portal to view all own applicants vii. 3/31 Launch new tenant functionality and updated application, including visibility into application status Other Rental Assistance Programs • State Treasury Program (see press release from Mary Benton) Approximately $85.5 million of money for Houston residents still with State • County TDHCA Program. We will be funding here and will use this as a way of moving folks in eviction forward immediately. This will be through case management rather than publicly pushing this website. Hardy Yards Purchase-Near Northside Complete Community • Funding source: Harvey Single Family funds from GLO contract • $15 .4 million purchase, of which $3 .4 million to be returned to the City based on final subsidy below Following is conservative draft subject to responses from developers • Minimum of225 homes built for homeownership 1. 115 affordable homes with purchase price ranging from $115,000 to $170,000 ii. 110 market rate homes with purchase price underwritten at $350,000 • Total anticipated City subsidy $12 million, of which $2 million is for infrastructure cost • Ongoing conversations with community about desire for retail near light rail stop • If purchase approved, next steps will be competitive RFP for developer with guidance from community cha1Tette. • Purchase ensures we meet spending benchmarks for 2021 Hmyey Economic Development Update (see attached flyer and 1 Pager) Housing Tax Credit Update • District A - Westview Lofts pulled their application this morning due to an opposition letter written by the State Rep. Due to the withdraw ofWestview

Lofts, HCDD will recommend Willow Chase Apartments for a resolution of support based on superior site demographics and the family designation. •

District F - Acadia Terrace appealed for a support resolution and a priority resolution for the Alief CC. This change is being done as we did not meet the three deal limit in F (Evening Star is a rehhab) and Acadia Te1rnce has superior site demographics compared to the two other deals petitioning for the priority resolution, Evening Star (F) and Fairways at Westview (J).

•

District I - Vista at Park Place appealed for a priority resolution for TIRZ 8 Gulf gate and its being granted as the only application located in the TIRZ

6. Council Agenda Memo (see attached) with highlights below:

Interoffice

CITY OF HOUSTON

HOUSING AND COMMUNITY DEVELOPMENT

Memo

From

Department of Housing and Community Development Multifamily Division

Date:

January 29, 2021

Subject:

2021 Resolutionsfor 9% Housing Tax Credit Applications

The following is a summary of applications eligible for a resolution of support required for 9% Housing Tax Credits applications submitted to the Texas Department of Housing and Community Affairs. These recommendations will be presented to Housing Committee of February 3, 2021. Applicants are encouraged to join virtual session of Housing Committee to respond to any questions posed by Housing Committee. Additional information on the meeting can be found at this link. https:ijwww.houstontx.gov/council/committees/housing.html The items presented to City Council during February 10th agenda to approve the following items: • •

26 applications located within the city limits eligible for a resolution of support 1 application located within the ETJeligible for a resolution of support

The list below is a list of eligible applications located within the city limits that are eligible for a resolution of support. Application Number

Development Name

Development Address

Council District

Target Population

1

21091

Laurel Terrace

1041 Conrad Sauer Dr

A

Elderly

2

21223

Westview Lofts

1212 W Sam Houston Pkwy

A

Elderly

3

21133

Parkway Meadows

3300 block of W Gulf Bank

B

Family

4

21183

Greens Way Villas

N Sam Houston Pkwy & I45 Frwy

B

Family

5

21038

Houston 150 Bayou Apartments

6970 Portwest Dr

C

Family

6

21128

Fisher Street Apartments

909 Fisher St

C

Family

7

21001

Harvard Street Lofts

15 Harvard Street

C

Family

8

21292

Campanile at Minimax

SECof Minimax Dr and W Loop 610

C

Elderly

9

21210

Hebron Village Supportive Housing (PSH)

7350 Calhoun Rd

D

Supportive Housing

10

21035

Manson Place Apartments

SWQ of Reeves St & Scott St

D

Family

11

21020

Huntington at Bay Area

SEcorner of Bay Area Blvd & Seawolf Dr

E

Elderly

Page 1 of 5

12

21058

Evening Star Apartments

11800 S Glen Dr

F

Elderly

13

21100

Hawthorn Terrace

3100 Hayes Rd

F

Elderly

14

21188

Dove Gardens

SWC of Westchase Way Dr & W Sam Houston Pkwy S

F

Elderly

15

21108

Azalea Terrace

601 State Hwy 6 S

G

Elderly

16

21137

Ella Grand

2077 S Gessner Rd

G

Elderly

17

21245

The Rushmore

800 Highway 6 South

G

Family

18

21010

Maury Street Lofts

2918 Elysian St

H

Family

19

21238

Jackson Hinds Garden

607 Thornton Rd

H

Supportive Housing

20

21011

William Booth Apartments

808 Frawley St

H

Elderly

21

21132

OST Lofts

5520 Old Spanish Trail

I

Family

22

21026

Vista at Park Place

NWC Park Place Blvd and Juniper St

I

Family

23

21027

New Hope Housing at Ennis

1846 Ennis St

I

Elderly

24

21131

Boulevard 61

6101 Richmond Ave

J

Family

25

21213

Fairways at Westwood

9745 Bissonnet

J

Family

26

21006

Westheimer Garden Villas

5811 Winsome Ln

J

Elderly

The list below is a revised list of eligible applications located within the ETJeligible for a resolution of support. Application Number

Development Name

Development Address

County

Target Population

21042

Cole Creek Estates

Approx 6850 Gessner Rd

Harris

Elderly

Applications may receive additional points if is located in a distinct area that was once vital and has lapsed into a situation requiring concerted revitalization, and where a concerted revitalization plan has been developed and executed (Concerted Revitalization Area). Under HCDD standards, these areas include identified revitalization areas identified under the city's Complete Communities initiative or Tax Increment Reinvestment Zone (TIRZ). Eight applications have selected to receive a Priority Resolution. Application Number

Development Name

Development Address

21091

Laurel Terrace

1041 Conrad Sauer Dr

A

21183

Greens Way Villas

At N Sam Houston Parkway and 1-45

B

21133

Parkway Meadows

3300 block of W Gulf Bank

B

Council District

Concerted Revitalization Area

TIRZ 17 - Memorial City TIRZ 11- Greater Greenspoint Acres Homes Complete Community

Page2 of5

21035

Manson Place Apartments

21188

Dove Gardens

21010

Maury Street Lofts

21132

OST Lofts

SWQ of ReevesSt & Scott St SWCof Westchase Way Dr and W Sam Houston Pkwy S 2918 Elysian Street

D

5520 Old Spanish

I

Third WardComplete Community Tl RZ20 - Southwest Houston

F

Near Northside Complete Community TIRZ7 - OSTAlmeda

H

Trail Westheimer Garden Villas

21006

5811 Winsome Lane

TIRZ 1- St. George Place

J

To avoid unjustified concentrations of competitive 9% housing tax credits properties, TDHCA requires that an applicant receive a resolution from the governing body of the municipality where the development is to be located if a competitive HTCapplication proposes a development site located less than two linear miles from the proposed development site of another application within the same calendar year. The proposed development sites listed below are located less than two linear miles from the proposed development site of another supported application.

Application Number

Development Name

1

21091

Laurel Terrace

2

21223

Westview Lofts

21038 21292

Houston 150 Bayou Aoartments Campanile at Minimax

5

21128

Fisher Street Apartments

6

21010

7

3

9 10

1041 Conrad Sauer

Council District

Target Population

A

Elderly

A

Elderly

C

Family

C

Elderly

610 909 Fisher St

C

Family

Maury Street Lofts

2918 Elysian St

H

Family

21011

William Booth Apartments

808 Frawley St

H

Elderly

21238

Jackson Hinds Garden

607 Thornton Rd

H

21131

Boulevard 61

6101 Richmond

J

Supportive Housinq Family

J

Elderly

4

8

Development Address

Dr

1212 WSam Houston Pkwy N 6970 Portwest Dr SEC of Minimax Dr and Wloop

Ave

21006

Westheimer Garden Villas

5811 Winsome Ln

A total of 48 applications for resolutions of support were received with 27 applications recommended for a resolution of support. Below is a summary of the remaining 21 applications with a summary of their application status or why it is not recommended for a resolution of support.

Page 3 of 5

Application Number

Development Name

1

21019

Huntington at Witte

1106 Witte Rd

A*

Elderly

Application is not located in' a recognized CRA

2

21204

Conrad Saur

1221 Conrad Sauer

A*

Elderly

Application is not located in a recognized CRA

3

21237

SkyPark Ten

1006 Redhaw St

A*

Family

Application is not located in[ i a recognized CRA

4

21016

Houston Willow Chase

0 Breton St

A*

Family

Application is not located ini a recognized CRA

5

21036

Avenue Square

1262 Conrad Sauer Dr

A*

Elderly

Application is not located inl a recognized CRA I

6

21224

Dominion

1024 Pinemont Drive

B

Elderly

Withdrawn by Applicant

Terrace

Campanile at Wakeforest

SECof Westpark Dr & Wakeforest Ave.

C

Elderly

Withdrawn by Applicant

Fairways at Greenway

3 723 Southwest Freeway

C

Elderly

Preference for family transactions and applications in lower poverty areas

Development Address

District

Target Population

Notes

'

I

7

21308

8

2129

9

21307

Bellaza

1706 & 1718 W 26 St & 2505 Ella Blvd

C

Elderly

Located in flood zone AE

10

21314

Viveza

1400 W 20th St

C

Elderly

Located on flood zone AE

11

21306

Campanile at West Dallas

1415 W DaIlas St

C

Elderly

Withdrawn by Applicant

12

21012

Beall Village

4463 N MacGregor

D

Elderly

Withdrawn by Applicant

13

21226

Serenity Palms

5511 Griggs Rd

D

Family

Withdrawn by Applicant

14

21264

Acadia Terrace

6002 Rogerdale Rd.

F

Family

Preference for other applications based on HCDD criteria

15

21134

Hartwood at Bellaire

11360 Bellaire Blvd

F

Family

Preference for other applications based on HCDD criteria

16

21217

Mariposa Senior Living

6706 Harrisburg

I

Elderly

Application requires additional financing

17

21041

Eada Crossing

3122 Leeland St

I

Elderly

Preference for family transactions

18

21195

Bissonnet Street Lofts

9945 Bissonet St

J

Elderly

Withdrawn by applicant

19

21296

Plainfield Street Lofts

9638 Plainfield St

J

Family

Withdrawn by applicant

20

21253

Valiente

NWC Jeanetta St and Pagewood Ln

J

Family

Poverty rate exceeds

8411 Knight Rd

K

21

21280

Knight Road Lofts

maximum

Elderly

Withdrawn by applicant

• Districts with a high concentration of affordable units. Applications in must be located in a CRA. Page 4 of 5

I

I

I

Updates on Application HCDDrequests applicants notify HCDD as soon as possible if they decide not to move forward on their application. Changes in application status may impact determination for other applicants.

Appeals Applicants have the right to appeal the determination. Appeals may only be made in writing. To be considered complete, an appeal must contain the following information: • •

•

• •

• •

Applicant Name Mailing Address Phone Email Address Development Name Property Address Reason for Appeal

Appeals may be submitted in any of the following methods: • • • •

Website -Request an Appeal https://houstontx.gov/housing/appeals.html Email - HCDDComplaintsAppeal@houstontx.gov Mail -Address listed below In person - During regular business hours, Monday- Friday from 8 A.M. -5 P.M., at our address below: Housing and Community Development Department 2100 Travis St., 9th Floor Houston, TX 77002 Attn: Multifamily Division/Appeal

Due to the time-sensitivity and accelerated timeline to review Low Income Housing Tax Credits, the deadline date to file an appeal must be received no later than Friday, February 5th, 2021 at 3:00 pm. Upon receipt of an appeal, HCDDwill respond in writing to the appellant of the program area's decision regarding the appeal and provide the basis thereof as early as five (5) days, as practicable, from the date of the determination. If additional time to issue a response is needed, you will be notified as soon as feasible

Page 5 of 5

Document 3

Mccasland, Tom - HCD Crinejo, Marta - MYR Tuesday, February 9, 2021 4:31 PM Mccasland, Tom - HCD FW: Rental Assistance Program Description Attachment to HCD21-8 revised 2-9-21.pdf; Attachment to HCD21-10 revised 2-8-21.pdf; Attachment to HCD21-11 revised 2-9-21.pdf

From:

Sent: To:

Subject: Attachments:

Just verifying there are no changes based on your meeting this afternoon with the boss, please.

Marta Crinejo Agenda Director Office of Mayor Turner 832.393.1091 From: Lawson, Roxanne - HCD <Roxanne.Lawson@houstontx.gov>

Sent: Tuesday, February 9, 2021 4:29 PM To: Mccasland, Tom - HCD <Tom.McCasland@houstontx.gov>; Miller, Ray- HCD <Ray.Miller@houstontx.gov>;

Ryan - HCD <Ryan.Bibbs@houstontx.gov>; Martinez, Ana - HCD <Ana.Patino-Martinez@houstontx.gov>; - HCD <Juanita.Moore@houstontx.gov> Cc:Crinejo, Marta - MYR <Marta.Crinejo@houstontx.gov> Subject: RE: Rental Assistance Program Description

Bibbs, Moore, Juanita

Tom, Juanita had already sent the information to Marta, so she has it. I believe it is Marta's office that will upload the revised lists. They are all attached hereto. Roxanne Lawson City Council Liaison/Division

Manager

City of Houston Housing and Community 2100 Travis Street

I9

832.394.6307

(office)

713.471.8675

(mobile)

th

Development Floor

Dept.

I Houston,

TX 77002

www.houstontx.gov/housing www.recovery.houstontx.gov

From: Mccasland, Tom - HCD <Tom.McCasland@houstontx.gov>

Sent: Tuesday, February 9, 2021 4:25 PM To: Miller, Ray- HCD <Ray.Miller@houstontx.gov>;

HCD <Ana.Patino-Martinez@houstontx.gov>;

Bibbs, Ryan - HCD <Ryan.Bibbs@houstontx.gov>; Martinez, Ana Moore, Juanita - HCD <Juanita.Moore@houstontx.gov> 1

Cc:Crinejo, Marta - MYR <Marta.Crinejo@houstontx.gov>; Lawson, Roxanne - HCD<Roxanne.Lawson@houstontx.gov> Subject: RE: Rental Assistance Program Description Importance: High Team,

Who is getting Marta that revised list for the 9% deals based on the appeals? Please copy everyone on whatever is sent to her. We need this ASAP. Thanks, Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282 www.houstontx.gov/housing From: Crinejo, Marta - MYR <Marta.Crinejo@houstontx.gov> Sent: Tuesday, February 9, 2021 4:13 PM To: Mccasland, Tom - HCD <Tom.McCasland@houstontx.gov> Subject: RE: Rental Assistance Program Description Tom,

I'm also looking for the revised 9% project lists so that I can get them out to Council.

Marta Crinejo Agenda Director Office of Mayor Turner

832.393.1091 From: Mccasland, Tom - HCD <Tom.McCasland@houstontx.gov> Sent: Tuesday, February 9, 20214:12 PM To: Hunter, Marvalette - MYR <Marvalette.Hunter@houstontx.gov>;

Sylvester Turner - MYR <Mayor.ST@houstontx.gov> Cc: lcken, Andy- MYR <Andy.lcken@houstontx.gov>; Thomas, William P. - MYR <William.Thomas@houstontx.gov>; Crinejo, Marta - MYR <Marta.Crinejo@houstontx.gov> Subject: RE: Rental Assistance Program Description Thank you. I'll circulate the final PDF later this evening. Tom Mccasland Director City of Houston Housing and Community Development Dept. 2

2100 Travis Street 832.394.6282

I 9th

Floor

I Houston TX 77002

www.houstontx.gov/housing From: Hunter, Marvalette - MYR <Marvalette.Hunter@houstontx.gov>

Sent: Tuesday, February 9, 2021 3:57 PM To: Mccasland, Tom - HCD<Tom.McCasland@houstontx.gov>; Sylvester Turner - MYR <Mayor.ST@houstontx.gov>

Cc:lcken, Andy- MYR <Andy.lcken@houstontx.gov>; Thomas, William P. - MYR <William.Thomas@houstontx.gov>; Crinejo, Marta - MYR <Marta.Crinejo@houstontx.gov>

Subject: Rental Assistance Program Description Tom, The Rental Assistance Program description draft memo is approved. The Mayor wants to hold until tomorrow for distribution. Please finalize and have it ready to go out immediately after Council action. Thank you, Marvalette Hunter Mayor's Chief of Staff (832) 393-1050 Office (281) 714-8327 Cell From: Mccasland, Tom - HCD<Tom.McCasland@houstontx.gov>

Sent: Tuesday, February 9, 202110:44:13 AM To: Sylvester Turner - MYR <Mayor.ST@houstontx.gov>

Cc: Hunter, Marvalette - MYR <Marvalette.Hunter@houstontx.gov>;

lcken, Andy - MYR <Andy.lcken@houstontx.gov>; Marquez, Veronica - MYR <Veronica.Marquez@houstontx.gov>; Bonham, Brenda - MYR <Brenda.Bonham@houstontx.gov>; Washington, Amanda - MYR <Amanda.Washington@houstontx.gov> Subject: Documents for HCD meeting Mayor, Please see attached the documents for today's meeting. Thank you, Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832 .394.6282

www.houstontx.gov/housing

3

Revised February 9, 2021 Application Number

Council District

Target Population

Development Name

Development Address 0 Brenton Ridge St

A

Family

1041 Conrad Sauer Dr 3300 block of W Gulf Bank N Sam Houston Pkwv & 1-45 Frwv 6970 Portwest Dr

A

Elderly

B

Family

B

Family

C

Family

909 Fisher St

C

Family

15 Harvard Street

C

Family

SEC of Minimax Dr and W Loop 610 7350 Calhoun Rd

C

Elderly

D

Supportive Housing

SWQ of Reeves St & Scott St SE corner of Bay Area Blvd & Seawolf Dr 6000 blk of Roaerdale Road 11800 S Glen Dr

D

Family

E

Elderly

F

Family

F

Elderly

3101 Hayes Rd

F

Elderly

F

Elderly

G

Elderly

1

21016

2

21091

Houston Willow Chase Living* Laurel Terrace

3

21133

Parkway Meadows

4

21183

Green Way Villas

5

21038

6

21128

7

21001

Houston 150 Bayou Apartments Fisher Street Apartments Harvard Street Lofts

8

21292

Campanile at Minimax

9

21210

10

21035

11

21020

Hebron Village Supportive Housing !PSHl Manson Place Apartments Huntington at Bay Area

12

21264

Acadia Terrace*

13

21058

14

21100

Evening Star Anartments Hawthorn Terrace

15

21188

Dove Gardens

16

21108

Azalea Terrace

SWC of Westchase Way Dr& WSam Houston Pkwy S 601 State Hwy 6 S

17

21137

Ella Grand

2077 S Gessner Rd

G

Elderly

18

21245

The Rushmore

G

Family

19

21010

Maury Street Lofts

800 Highway 6 South 2918 Elysian St

H

Family

20

21238

Jackson Hinds Garden

607 Thornton Rd

H

21

21148

808 Frawley St

H

22

21132

William Booth Apartments OST Lofts

Supportive Housino Elderly

5520 Old Spanish Trail

I

Family

23

21026

Vista at Park Place

24

21027

25

I

Family

I

Elderly

21131

New Hope Housing at Ennis Boulevard 61

NWC Park Place Blvd and Juniner St 1846 Ennis St 6101 Richmond Ave

J

Family

26

21213

Fairways at Westwood

9745 Bissonnet

J

Family

27

21006

Westheimer Garden Villas

5811 Winsome Ln

J

Elderly

* Revisions February 9, 2021 • Houston Willow Chase Living added • Acadia Terrace added • Westview Lofts removed

Document 4

Mccasland, Tom - HCD Crinejo, Marta - MYR Tuesday, February 9, 2021 7:17 PM Alcorn, Sallie - CNL; Castex-Tatum, Martha - CNL; Cisneros, Karla - CNL; Evans-Shabazz, Carolyn - CNL; Gallegos, Robert - CNL; Hunter, Marvalette - MYR; Jackson, Tarsha - CNL; Kamin, Abbie - CNL; Knox, Mike - CNL; Kubosh, Michael - CNL; Martin, Dave - CNL; Peck,Amy - CNL; Plummer, Letitia - CNL; Pollard, Edward - CNL; Robinson, David - CNL; Thomas, Tiffany D. - CNL; Thomas, William P. - MYR; Travis, Greg - CNL Mccasland, Tom - HCD; Lawson, Roxanne - HCD Re: Revised project lists for items 10, 12, & 13.... Attachment to HCD21-8 revised 2-9-21 final.pdf

From:

Sent: To:

Cc: Subject: Attachments:

Council Members, Apologies but the backup for item #10 I uploaded previously was incorrect. attachment

I have uploaded the correct

in Novus and I've also attached it here for your review.

From: Crinejo, Marta - MYR

Sent: Tuesday, February 9, 2021 4:53 PM To: Alcorn, Sallie - CNL <Sallie.Alcorn@houstontx.gov>; Castex-Tatum, Martha - CNL <Martha.CastexTatum@houstontx.gov>; Cisneros, Karla - CNL <Karla.Cisneros@houstontx.gov>; Crinejo, Marta - MYR <Marta.Crinejo@houstontx.gov>; Evans-Shabazz,Carolyn - CNL <Carolyn.Evans-Shabazz@houstontx.gov>; Gallegos, Robert - CNL <Robert.Gallegos@houstontx.gov>; Hunter, Marvalette - MYR <Marvalette.Hunter@houstontx.gov>; Jackson, Tarsha - CNL <Tarsha.Jackson@houstontx.gov>; Kamin, Abbie - CNL <Abbie.Kamin@houstontx.gov>; Knox, Mike - CNL <Mike.Knox@houstontx.gov>; Kubosh, Michael - CNL <Michael.Kubosh@houstontx.gov>; Martin, Dave - CNL <Dave.Martin@houstontx.gov>; Peck, Amy- CNL <Amy.Peck@houstontx.gov>; Plummer, Letitia - CNL <Letitia.Plummer@houstontx.gov>; Pollard, Edward - CNL <Edward.Pollard@houstontx.gov>; Robinson, David - CNL <David.Robinson@houstontx.gov>; Thomas, Tiffany D. - CNL <TiffanyD.Thomas@houstontx.gov>; Thomas, William P. MYR <William.Thomas@houstontx.gov>; Travis, Greg - CNL <Greg.Travis@houstontx.gov> Cc: Mccasland, Tom - HCD <Tom.McCasland@houstontx.gov>; Lawson, Roxanne - HCD <Roxanne.Lawson@houstontx.gov> Subject: Revised project lists for items 10, 12, & 13 ....

Council Members, Please be aware that I have uploaded revised project lists in Novus for the following items: 10. RESOLUTIONconfirming support for the proposed development of certain properties as Affordable Rental Housing, each located in the City of Houston, Texas, and the submittal of applications for Housing Tax Credits for such developments - DISTRICTSA- PECK;B - JACKSON;C - KAMIN; D - EVANS-SHABAZZ;E - MARTIN; F - THOMAS; G - TRAVIS; H - CISNEROS;I - GALLEGOSand J - POLLARD 12. RESOLUTIONconfirming support for the proposed development as Affordable Rental Housing of one or more properties which are subject to the Two Mile Same Year Rule, each located in the City of Houston, Texas, and the submittal of applications for Housing Tax Credits for such developments; allowing the construction of such developments; and authorizing the allocation ofTax Credits to such developments - DISTRICTSA- PECK;C - KAMIN; H CISNEROSand J - POLLARD

1

13. RESOLUTIONexplicitly identifying certain proposed development of Affordable Rental Housing as contributing most significantly to the concerted revitalization efforts of the City of Houston, Texas - DISTRICTSA - PECK;B - JACKSON; D - EVANS-SHABAZZ;F - THOMAS; H - CISNEROS;I - GALLEGOSand J - POLLARD Changes are in red and are listed at the bottom of each chart. Please let me know if you have any questions or concerns.

Marta Crinejo Agenda Director Office of Mayor Turner

832.393.1091

2

Revised February 9, 2021 Council District

Target Population

Application Number

Development Name

Development Address

1

21019

Huntington at Witte*

1106 Witte Rd

A

Elderly

2

21091

Laurel Terrace

A

Elderly

3

21133

Parkway Meadows

B

Family

4

21183

Green Way Villas

B

Family

5

21038

C

Family

6

21128

909 Fisher St

C

Family

7

21001

Houston 150 Bayou Apartments Fisher Street Aoartments Harvard Street Lofts

1041 Conrad Sauer Dr 3300 block of W Gulf Bank N Sam Houston Pkwv & 1-45 Frwv 6970 Portwest Dr

15 Harvard Street

C

Family

8

21292

Campanile at Minimax

C

Elderly

9

21210

D

Supportive Housing

10

21035

Family

21020

E

Elderly

12

21264

Acadia Terrace*

F

Family

13

21058

F

Elderly

14

21100

Evening Star Aoartments Hawthorn Terrace

SWQ of Reeves St & Scott St SE corner of Bay Area Blvd & Seawolf Dr 6000 blk of Rogerdale Road 11800 S Glen Dr

D

11

Hebron Village Supportive Housing /PSHl Manson Place Aoartments Huntington at Bay Area

SEC of Minimax Dr and W Looo 610 7350 Calhoun Rd

3101 Hayes Rd

F

Elderly

15

21188

Dove Gardens

F

Elderly

16

21108

Azalea Terrace

SWC of Westchase Way Dr& WSam Houston Pkwv S 601 State Hwy 6 S

G

Elderly

17

21137

Ella Grand

2077 S Gessner Rd

G

Elderly

18

21245

The Rushmore

G

Family

19

21010

Maury Street Lofts

800 Highway 6 South 2918 Elysian St

H

Family

20

21238

Jackson Hinds Garden

607 Thornton Rd

H

21

21148

808 Frawley St

H

22

21132

William Booth Apartments OST Lofts

Supportive Housinq Elderly

5520 Old Spanish Trail

I

Family

23

21026

Vista at Park Place

24

21027

25

I

Family

I

Elderly

21131

New Hope Housing at Ennis Boulevard 61

NWC Park Place Blvd and Junioer St 1846 Ennis St 6101 Richmond Ave

J

Family

26

21213

Fairways at Westwood

9745 Bissonnet

J

Family

27

21006

Westheimer Garden Villas

5811 Winsome Ln

J

Elderly

* Revisions February 9, 2021 • Huntington at Witte added • Acadia Terrace added • Westview Lofts removed

Document 5

Mccasland, Tom - HCD From:

Sent: To:

Cc:

Subject:

Hunter, Marvalette - MYR Friday, February 12, 2021 10:28 AM Mccasland, Tom - HCD lcken, Andy - MYR Re: Resolution of Support - District A

You can proceed with the substitution. Thank you, Marvalette Hunter Mayor's Chief of Staff (832) 393-1050 Office (281) 714-8327 Cell From: Mccasland, Tom - HCD <Tom.McCasland@houstontx.gov>

Sent: Thursday, February 11, 2021 6:50:58 PM To: Hunter, Marvalette - MYR <Marvalette.Hunter@houstontx.gov>

Cc: lcken, Andy- MYR <Andy.lcken@houstontx.gov> Subject: FW: Resolution of Support - District A Chief, Any thoughts on us moving this development forward as a replacement for Huntington at Witte, now that Rep. Hull has written an opposition letter? Thanks, Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282 www.houstontx.gov/housing From: Miller, Ray- HCD <Ray.Miller@houstontx.gov>

Sent: Thursday, February 11, 2021 2:36 PM To: Mccasland, Tom - HCD<Tom.McCasland@houstontx.gov>

Cc:Moore, Juanita - HCD <Juanita.Moore@houstontx.gov>; Bibbs, Ryan - HCD<Ryan.Bibbs@houstontx.gov>; Martinez, Ana - HCD<Ana.Patino-Martinez@houstontx.gov> Subject: Resolution of Support - District A Tom, With the Huntington at Witte application getting a negative letter from State Rep Hull, it will be primarily be noncompetitive even if it moves to apply for the credits. During our appeal review we noted an alternate transaction which 1

warrants consideration is Willow Chase located in the Willowbrook area. The site is a low poverty area (10%) with all schools rated B by the TEA. It is a strong contender in this year's round. Additional info is in the attached. I have spoken with the developer who met with State Rep Sam Harless. The developer said Harless was positive about the transaction and asked them to reach out to two local HOA's to help secure support. Let us know your thoughts on putting this item forward. Ray Ray Miller Assistant Director Multifamily, Public Facilities and Real Estate Finance City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832-394-6119 (office)

2

Document 6

Mccasland, Tom - HCD From: Sent: To:

Cc:

Subject: Attachments:

Mccasland, Tom - HCD Wednesday, May 12, 2021 1:46 PM Sylvester Turner - MYR Hunter, Marvalette - MYR; lcken, Andy - MYR; Bonham, Brenda - MYR; Washington, Amanda - MYR; 'Kennisha London (Kennisha.London@houstontx.gov)'; Marquez, Veronica - MYR Documents for HCDD meeting 1 MST agenda 5.12.2021.docx; 2 Draft -LOl-2209 Emancipation Ave- May 4. 21 .docx; 3 MEMO - DR-17 MULTIFMAILY ROUND 2 UPDATE - VB 05072021.docx; 4 Policy# 01-003 Telecommuting Policy v1.1 CLEAN.pd/; 4.5 Return to Work Plan v0.2 CLEAN.pd/; 5 Memo Regarding Buyout Transactions REVISED2_210505.docx.pdf; 6 Council Agenda Memo for MST 051021.pdf

Mayor, Please see attached the documents for today's meeting. Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282

www.houstontx.gov/housing

1

MST meeting with HCDD

May 12,2021

1. Rental Assistance Update: pledged & paid $69 million • $55.1 million paid (City portion: $26.2 million) • $13.9 million pledged (City portion: $6.1 million) • Received $22,189,735.16 for rental assistance today • Contracts are set up to allow additional funding to be added without going back to City Council. However, we have plenty of time to go to City Council if that is prefen-ed route. 2. GLO June 30 Benchmark Update (as of Monday) • Overall target: $99.56 million • Total submitted to date: $96.3 million • Program update i. Homebuyers: exceeded draw target ii. Multifamily: exceeded submissions for draw target, and waiting for GLO 111. Public Services: $400k away from hitting submission target. This will occur this week. 1v. HoAP: $3.67 million away from hitting submission target. On pace to hit submission target by end of next week. v. Buyout: $5.6 million away from hitting submission target. Closed on MacGregor last week and will submit this week to fully hit target. 3. LOI- 2209 Emancipation Ave (see attached) 4. Multifamily Round 2 DR-17 (see attached memo) • $12.4 million remaining from DR-17 funds • Propose shifting Houston Area Women's Center to HOME-ARP funds adding $15.6 million back to DR-17 funds • $28 million would be available for a proposal such as the one Ray presented regarding the W. Alabama site. 5. DRAFT Telecommuting Policy & Return to Work Plan (see attached) • Employees with enclosed offices are already in the office at least weekly. • Certain teams are fully back to the office. • We have identified cubicles that can be used by any employee to socially distance • Beginning June 1, subject to the criteria in the attached draft policy, all employees will return to the office on at least a part-time basis. • Managers will manage in office/telecommuting employees so that we do not exceed 50% of employees in office at any given time. • Hybrid model will continue until mask wearing/social distancing directives change or the City implements a longer te1m telecommuting policy. 6. Buyout Transactions (see attached memo) 7. Follow up for any comments on FY2020 Draft Annual Financial Report 8. Houston Housing Finance Corporation

9. Council Agenda Memo (see attached) • Approval retroactively of submission of grant application and approval to accept rental assistance. • LiftFund: $4.2 million in Harvey funds. Revolving loan program for small construction sector businesses.

Interoffice Memo

CITY Of HOUSTON

HOUSING AND COMMUNITY DEVELOPMENT

Date: (updated) May 10, 2021

To:

Tom Mccasland

From:

Ray Miller

Subject:

Supplemental Recommendations

Updates since memo posted 4/7/2021 Accounting for the inclusion of the supplemental awards for th~itw'.~faW)\b:!,~d contracts (Parkway Meadows and Connect Phase II), HCDDhas subscribed approximately $42'.!-,,i;_Ji\'fifr6n in.tBH\rnct awards and an estimated $16 million in project delivery costs. Of the total $450 milliorJc!lWdi~tfor Multif~'Miih..approximately $12.4 million remains to be allocated. A summary of all the transac.ti/i:IB~JG.rrentlybeing fin~hMP.,~nd/or recommended to be financed in the MFRP can be seen in the schedule on fr,~jfs,.llowingpage. As a suriih\~tY,.of the 37 transactions to be financed in the MFRP: .·•·..

•

• •

16 transactions are currently underi~'/i-~.trnction

·-:::-:-:: ..-:-:-:-:-,:,:/

2 transactions have received council::,~:RRf'by~IJ?. commerit{;s~):]Struction activities in the next 45 days 19 transactions o 4 transactions to be submitted tdfity coJii@fox.approJl/j),i_thin the next 6 weeks o 7 transactionst~ Bg?i:Jl:m1ittedto CouncJ!i~ij \:lose in th~:i''QTR 0 7 transactlo6~¥6~}dhi\iittted to Cify~Ql.lQ~ii~riddo~~lrJ:th~4 th TR o 2 transactliins\o close wffHlh 1st QTR2022) ....... .

fli,;,

'. '" --=:•,

:<<•>:-

. """'."

On May 4th 2021, HC::{U:/~resentMf~hPW~~falJQpurchai~~?-25 acres site at 1920 W Alabama for a proposed construction of4#t#iiJiPf1int.al unM\6~llrtiriai\t~~inthe'M'.F:.f\P. Total development costs are estimated between $60)$:656 milliort «i'.ifhup tol~~? millio~ 28hfriJ:i1;1tiiin provided by the MFRP. As stated, HCD'ciJ~xrently has $1f~;M:re::iJ;:~gtp be au::ated in the MFRP. To account for a $25.0 million investment for thi~fotpurchase anci'~/h:elopm~H{investment, HCDDwill re-allocate the estimated $15.8 million for the Houston Area\\fgmen's Center@g_m the MFRPinto the pending receipt of its HOME-ARP allocation of $37.3 million. HCDDreciifii~:!cUts award@fter of these funds on April 281\ 2021. HOME-ARPfunds are intend~J~~:M:j~:S:id for individuals or families from the following qualifying populations: homeless; at-risk of homelessnes~/:~j~'i;"ingor attempting to flee domestic violence/human trafficking and veterans and families. HOME-ARPfunds can be used for eligible activities including the production or preservation of affordable housing; tenant-based rental assistance; supportive services, including homeless prevention services and housing counseling; and the purchase or development of non-congregate shelter for individuals and families experiencing homelessness. HCDDhas prepared an initial budget for pending capital and homeless projects which HOME -ARPfunds are being contemplated which can be found in the table below. Several of the capital projects are pending applications and will be presented at a later date.

Page 1 of 3

Project

Admin

Amount $5,602,920

Use Admin

Covenant House

$6,000,000

Capital

Navigation Center

$3,000,000

Operating

Harris Center

$3,000,000

Capital

Houston Area Women's Center Remaining Total

$15,850,000

Capital

$3,899,885 $37,352,805

TBD

Timing Various

Description HCDDadministrative costs to support programming 4th QTR 2021 Covenant House provides shelter and program services to Houston's homeless youth and requesting grant funding for the re-development of their current site. 2023 - 2025 To be used for operating costs to support th 4 QTR 2021 ,i :)l.)4-unit facility to provide housing to .{. those suffering mental health and/or .-<i?:i{ ..an intellectual and developmental ./;:ii,/ · disabilities

~;rn:

This realignment of funds will allow HCDD1:ildiPJctMFRP ;~:~~t1w[~!~~he acquisitio~ site at 1920 West Alabama and commence on the NOFAto selJ~fia~.v~loper for th~\iti;\.. The reallocation will allow for approximately $8 million remaining in the MFRPf.tiatwifl:'.B~~llocatecttQ~iJ,[ds projects already in the pipeline experiencing increase in hard

Page 2 of 3

Document 7

Mccasland, Tom - HCD From:

Sent: To:

Cc: Subject:

Hunter, Marvalette - MYR Thursday, May 20, 2021 3:46 PM Mccasland, Tom - HCD Miller, Ray - HCD; lcken, Andy - MYR; Sylvester Turner - MYR Multi family Round 2 DR-17

Tom,

In regards to the remaining Multi-family Round 2 DR-17 funding (approx $28 million), the Mayor would like to put out a NOFA for new projects or tax credit developments that may need additional gap funding in the current 9% round. Your proposal to shift the Houston Area Women's Center to HOME-ARPas a more appropriate funding source is approved. Please proceed immediately with the NOFA to ensure timely processing of funding requests and to ensure use of the funding before the deadline. Let me know if you have questions. Thank you, Marvalette Hunter Mayor's Chief of Staff (832) 393-1050 Office (281) 714-8327 Cell

1

Document 8

Mccasland, Tom - HCD From:

Sent: To: Cc: Subject:

lcken, Andy - MYR Monday, May 31, 2021 1:58 PM Hunter, Marvalette - MYR Mccasland, Tom - HCD; Miller, Ray - HCD; Sylvester Turner - MYR Re: Multi family Round 2 DR-17

Mayor/Marvalette Sorry I'm just catching up on this specific charge right now( finally have caught up with all emails) see attached email. I have concerns( which may be limited by available info but I have made calls to try and verify info). First concern is breaking our posture on offering supplementary funding for any 9% tax credits. By offering some to this case I'm concerned how others will quickly knock on our doors for their 'supplementary' allocation. As the mayor has pointed out we all are hearing of lumber, steel and other significant cost increases. In my economic development role I have been hearing about it on a very frequent basis. Once we do it here I expect the others will quickly follow. The principal that 9% tax credits are robust and should fund projects was, in my view, a very sound principal. Second concern is how we moved funds around to create the 15m$.As I understand it we replaced Woman's Home funding that was flexible to move(Perhaps Home but not sure) and replaced it with RECOVERY-COVID $. Those RECOVERY-COVID$area prime source for our Homeless initiatives and I understand the guidelines are clear as to their use there. We are still working with the Coalition and others to finalize the Homeless plan and will be bringing it to you shortly but early planning suggests we need those dollars there. Again I apologize being tardy on getting these comments to everyone but I did want to express my view. I'll be on the weekly call tomorrow at 1115. Thank you. Sent from my iPad

On May 20, 2021, at 3:45 PM, Hunter, Marvalette - MYR <Marvalette.Hunter@houstontx.gov>

wrote:

Tom, In regards to the remaining Multi-family Round 2 DR-17 funding (approx $28 million), the Mayor would like to put out a NOFA for new projects or tax credit developments that may need additional gap funding in the current 9% round. Your proposal to shift the Houston Area Women's Center to HOMEARP as a more appropriate funding source is approved. Please proceed immediately with the NOFA to ensure timely processing of funding requests and to ensure use of the funding before the deadline. Let me know if you have questions. Thank you, Marvalette Hunter Mayor's Chief of Staff (832) 393-1050 Office 1

{281) 714-8327 Cell

2

Document9

Mccasland, Tom - HCD Hunter, Marvalette - MYR Tuesday,June 1, 2021 7:22 AM lcken, Andy - MYR Mccasland, Tom - HCD; Miller, Ray - HCD; Sylvester Turner - MYR Re: Multi family Round 2 DR-17

From:

Sent: To:

Cc: Subject:

No need to apologize. Just focus on getting better. We will move forward with a NOFA and can place parameters on it to ensure that we maximize the funding. I agree that it is not much and will likely go fast. Thank you, Marvalette Hunter Mayor's Chief of Staff (832) 393-1050 Office (281) 714-8327 Cell From: lcken, Andy- MYR <Andy.lcken@houstontx.gov> Sent: Monday, May 31, 20211:58:13 PM To: Hunter, Marvalette - MYR <Marvalette.Hunter@houstontx.gov> Cc: Mccasland, Tom - HCD <Tom.McCasland@houstontx.gov>; Miller, Ray - HCD <Ray.Miller@houstontx.gov>; Sylvester Turner - MYR <Mayor.ST@houstontx.gov> Subject: Re: Multi family Round 2 DR-17

Mayor/Marvalette Sorry I'm just catching up on this specific charge right now( finally have caught up with all emails) see attached email. I have concerns( which may be limited by available info but I have made calls to try and verify info). First concern is breaking our posture on offering supplementary funding for any 9% tax credits. By offering some to this case I'm concerned how others will quickly knock on our doors for their 'supplementary' allocation. As the mayor has pointed out we all are hearing of lumber, steel and other significant cost increases. In my economic development role I have been hearing about it on a very frequent basis. Once we do it here I expect the others will quickly follow. The principal that 9% tax credits are robust and should fund projects was, in my view, a very sound principal. Second concern is how we moved funds around to create the 15m$.As I understand it we replaced Woman's Home funding that was flexible to move(Perhaps Home but not sure) and replaced it with RECOVERY-COVID $. Those RECOVERY-COVID $area prime source for our Homeless initiatives and I understand the guidelines are clear as to their use there. We are still working with the Coalition and others to finalize the Homeless plan and will be bringing it to you shortly but early planning suggests we need those dollars there. Again I apologize being tardy on getting these comments to everyone but I did want to express my view. I'll be on the weekly call tomorrow at 1115. Thank you. Sent from my iPad

On May 20, 2021, at 3:45 PM, Hunter, Marvalette - MYR <Marvalette.Hunter@houstontx.gov> 1

wrote:

Tom, In regards to the remaining Multi-family Round 2 DR-17 funding (approx $28 million), the Mayor would like to put out a NOFA for new projects or tax credit developments that may need additional gap funding in the current 9% round. Your proposal to shift the Houston Area Women's Center to HOMEARP as a more appropriate funding source is approved. Please proceed immediately with the NOFA to ensure timely processing of funding requests and to ensure use of the funding before the deadline.

Let me know if you have questions. Thank you, Marvalette Hunter Mayor's Chief of Staff (832) 393-1050 Office (281) 714-8327 Cell

2

Document 10

Mccasland, Tom - HCD From: Sent: To:

Cc:

Subject: Attachments:

Follow Up Flag: Flag Status:

Mccasland, Tom - HCD Tuesday, August 17, 2021 10:30 AM Sylvester Turner - MYR Hunter, Marvalette - MYR; lcken, Andy - MYR; Marquez, Veronica - MYR; Washington, Amanda - MYR; Bonham, Brenda - MYR; 'Kennisha London (Kennisha.London@houstontx.gov)' Documents for HCD meeting 1 MST agenda 8.17.2021.docx; 2 EaDo 800 Lofts Fact Sheet.docx; 3 CDBG Funds for Public Infrastructure Improvements at 800 Middle 06-10-2021.pdf; 4 MEMO - DR-17 MULTIFMAILY ROUND 3 - SUMMARY OF AWARDS V1 08092021.pdf; 5 Council Agenda Memo for MST 081721.pdf Follow up Completed

Mayor, Please see attached the documents for today's meeting. Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282

www.houstontx.gov/housing

1

MST meeting with HCDD Angust 17, 2021

1. Rental Assistance Update • Final round of funding has been requested from Treasury • Congressional Quarterly is doing a story on the rental assistance highlighting Houston's successes • $173.2 million pledged and paid benefiting 45,663 households

2. CDBG-MIT (GLO) • Per the County, the GLO has translated the new Action Plan including the County funding and will be posting for public comment anytime. 3. CDBG-MIT (CoH) - Housing Authority Request • EaDo 800 Lofts: 1. 400 units totaling $101 million with no funding from the City. (see attached factsheet) ii. $12.56 million requested for public infrastructure improvements to site, currently budgeted CDBG-MIT funding. (see attached request letter from HHA) iii. Request represents only outside investment. Other projects will be managed by HPW. 4. Single Family HR update 5. Multifamily NOFA (see attached draft Memo) 6. Council Agenda Memo (see attached)

Interoffice Memo

CITY Of HOUSTON

HOUSING AND COMMUNITY DEVELOPMENT

Date: August 16, 2021

To:

Tom Mccasland

From:

Ray Miller

Subject:

Summary of Awards - 2020 Multifamily DR-17 NOFA - Round 3

NOFA Overview The City of Houston received a direct allocation from the Texas General Land Office of $1,175,954,338 for development and implementation of programs under the CDBGDR-17 grant. Of this amount, HCDD has identified approximately $450 million to be directed into the Multifamily Program. On June 4, 2021 HCDD issued a 3'' NOFA to secure proposals to finance multifamily developments. After the reallocation of the Houston Area Women's Center that will be funded with HOME-ARPfunds, HCDD subscribed approximately $426 million in contract awards throughout 36 transactions and an estimated $16 million in project delivery costs. Of the total $450 million budget for Multifamily, approximately $26.7 million remains to be allocated. In June, HCDD released a third round NOFAto subscribe its remaining allocation. In total, HCDD received 12 applications totaling $85 million in total requests. Of these, 7 transactions are funded with 2021 9% housing tax credits, 3 are funded with 4% housing tax credits and 2 are conventionally financed. Selection Methodology The NOFA closed on July 3'' and HCDDreceived 12 applications in the NOFA. All applications met threshold review and were scored accordingly. Applications were reviewed internally by a panel of HCDDand other city personnel based on the information provided. The panel evaluated the applications against a set of predetermined scoring criteria outlined in this section. All applications received an overall score and ranked based on the merits of the submission. Scores were consolidated and tabulated on Friday, August 6, 2021. It is to be noted that an application's score and ranking does not solely determine award status. An application must clearly demonstrate the development meets one or several of the priorities outlined in the guidelines and NOFA that will be determined by the panel. The panel will finalize and itemize a list of applications recommended to receive an award of CDBG-DRfunds. The list of recommended transactions will be presented to the Mayor's office for approval. The Mayor's Office will have the authority to approve or deny applications that meet HCDD's threshold review and are in line with the administration's priorities.

Page 1 of 4

2021 CDBG-DR17 HCDD Applicant List and Recommended Awardees The developments shown below represent the highest scoring transactions form the NOFA and ranked on the available amount of funds for the projects. This list accounts form the remaining available in the MFRP of $26,232,480. Funds were allocated in the order of scoring priority with the remaining allocation awarded to the final transaction. Development

Developer

Avenue CDCScattered Site

Avenue CDC

Arcadia Terrae

Resolution Companies

9%

120

F

General

59

New Hope at Berry

New Hope Housing Kilday Realty

4%

240

H

Genera!

58

9%

117

C

Senior

Campanile at Minimax

Fairwaysat

Westwood

Other Financing Conv.

Total Units 13

Council Dist.

H

Housing Type

General

NOFA Score

HCDD Priority

Application Request

Recommen ded Awardi

$1,335,171

$1,335,171

$24,897,309

$4,000,000

$3,000,000

$21,897,309

Community Supportive Housing

$10,000,000

$10,000,000

$11,897,309

55

High Opportunity

$5,200,000

$3,000,000

$8,897,309

52

Alief / Westwood Complete Community

$15,000,000

$8,897,309

$0

$35,535,171

$26,897,309

63

High Opportunity/

Remaining MFRPAmount

Transit Oriented

Alief / Westwood Complete

(55+) Mark/Dana Corp

4%

Total

177

J

General

667

2021 CDBG-DR17 Conditional Awardees If any of the recommended deals are not viable with the remaining allocation, the following list are proposed recommendations by HCDD subject to availability of CDBG DR 17 financing and are listed in order of priority. Development

Developer

Boulevard 61

OMA and Assoc Atlantic Pacific Group

Vista at Park Place Total

Other Financing

Total Units

9%

100

J

General

so

High Opportunity

$5,000,000

$3,000,000

9%

69

I

General

49

Transit Oriented Development

$4,500,000

$3,000,000

$9,500,000

$6,000,000

Council Dist.

Housing Type

NOFA Score

HCDD Priority

Application Request

Recommended Award

Page 2 of 4

2021 CDBG-DR17Remaining Applicants The list below reflects transactions that fell below the scoring threshold of the scoring panel. If any transactions meet the administration's priorities, HCDD will adjust the recommendations accordingly. In addition, these transactions may be recommended in the event existing proposals in the pipeline do not close on their financing for any particular reason or if additional DR-17 funds are reallocated into MFRP.

Huntington at Bay Area

MGroup

9%

148

E

Housing Type Senior

Westheimer Garden Villas

9%

85

J

Senior

48

$5,800,000

The Rushmore

Super Urban Realty/ Texas Interfaith HTGTeam

9%

101

G

Family

45

$1,000,000

New Faith Senior Village The Berry City Centre

DWR Development Mayberry Homes

4%

128

K

Senior

43

$14,500,000

Conv

20

D

General

42

$3,884,677

Development

Total

Developer

Other Financing

Total Units

Council Dist.

NOFA Score

Application Request

48

$15,000,000

Comments

Pros: Little HCDDinvestment in District E Cons: extremely high ask, seniors transaction Pros: highest scoring 9% deal Cons: poor property management history with HCDD Cons: did not require subordinate financing Pros: Strong community support Cons: low leverage Cons: no leverage, no multifamily experience

$40,184,677

; * Amounts reflect the original application amount and are subject to revision during HCDD underwriting Please note that HCDDstaff have not underwritten these transactions and allocations may vary at the time of presentation to city council.

Page 3 of 4

2 900 Winston

New Construction

114

$30,042,004

$263,526

$11,230,000

Under Construction

67%

3 Bel!fort Park

Rehabilitation

64

$14,083,048

$220,048

$3,500,000

Under Construction

98%

Construction Construction Construction Construction Construction

120 126 85 120 115

$22,320,000 $27,955,394 $26,624,431 $35,419,526 $33,085,918

$186,000 $221,868 $313,229 $295,163 $287,704

$2,500,000 $8,000,000 $9,400,000 $14,500,000 $12,400,000

Under Construction

99% 97%

9 Scott Street Lofts 10 The Gale Winds Apartments 11 Avenue on 34th

New Construction Rehabilitation New Construction

123

$34,673,324

$281,897

$14,500,000

Under Construction

18 70

$3 304988 $18,187,638

$183 610 $259,823

$1650 000 $9,090,000

Under Construction Under Construction

12 St Elizabeth Place 13 Elgin Place

Rehabilitation New Construction

85

$31,465,057

$370,177

$10,174,622

Approved

0%

$28,190,721 $59,287,719 $23,157,980

$380,956 $300,953 $231,580

$10,250,000 $25,000,000 $10,000,000

Under Construction Under Construction

0% 0% 0%

$2,350,000

Under Construction Under Construction

88% 0%

Under Construction

26%

4 5 6 7 8

Briarwest Apartments Edison Lofts Ga!a at MacGregor McKee City Living South Rice Apartments

New New New New New

Under Under Under Under

Construction Construction Construction Construction

.

36% 65% 55%

40% .

92% 42%

Rehabilitation

74 197 100

16 West Little York 17 3300Caro!ine

New Construction New Construction

150 149

$22,830,000 $36,742 209

$152,200 $246,592

18 Dian Street

New Construction

108

$28,971,116

$268,251

$15 000000 $11,000,000

19 NHH Savoy

New Construction New Construction

120

$33,794,447

$281,620

$13,200,000

Underwriting

0%

$35,005,530 $37,887,698 S26 015 366 $25,058,075

$291,713 $280,650 <:;325192 $313,226

$14,000,000 $14,350,000 $7 500 000 $11,130,000

Under Construction Under Construction Underwritinf::F Underwriting

30% 26% 0% 0%

14 2100 Memorial 15 W. Leo Daniels Towers I

20 Regency Lofts

Reconstruction

Underwriting

New Construction

120 135 80 80

24 Summit at Renaissance Park

New Construction

325

$81,219,572

$249,906

$14,900,000

Under Construction

0%

25 Caroline Lofts 26 Temenos Place II

New Construction New Construction

119 94

$39,864,269 $33,965,013

$334,994 $361,330

$19,619,370 $8,000,000

Under Construction Under Construction

5% 0%

27 Hay Center Campus

New Construction

50

$29,869,316

$597,386

$5,000,000

Underwriting

0%

28 Canal Lofts

New Construction

150

$34,425,000

$229,500

$12,000,000

Under Construction

20%

29 Ella Grand

New Construction

145

$31,852,011

$219,669

$12,000,000

Underwriting

0%

Recon

111

$20,699,039

$186,478

$14,089,000

Underwriting

0%

21 Heritage Senior Residences 22 Lockwood South 23 Lockwood South- Phase I!

30 Jackson Hinds Gardens 31 801 St. Joseph

New Construction New Construction

Rehab

428

$94,076,060

$219,804

$17,000,000

Underwriting

0%

32 OSTLofts

New Construction

135

$33,508,508

$248,211

$13,000,000

Underwriting

0%

33 Richmond Senior Village

New Construction

125

$36,483,974

$291,872

$15,500,000

Underwriting

0%

34 Parkway Meadows

New Construction

82

$22,593,342

$275,529

$10,000,000

Underwriting

0%

35 Connect South Apartments

New Construction

77

$27,675,124

$359,417

$9,000,000

Underwriting

0%

36 Connect South Apartments- Phase 2 New Construction Total

72

$30,633,964

$425,472

$14,500,000

Underwriting

0%

4366

$

1,185,734,964

$

271,584 Project Delivery Program Total Date

$ $

S

407,817,992 16,000,000 423,817,992

MFRPProgram Total

.$__

45_0~,0_5_0~,4_7_2

Remaining Allocation

$

26,232,480

Page 4 o/4

.

Document 11

Mccasland, Tom - HCD From: Sent: To:

Cc:

Subject: Attachments:

Mccasland, Tom - HCD Tuesday, August 24, 2021 9:39 AM Sylvester Turner - MYR Hunter, Marvalette - MYR; lcken, Andy - MYR; 'Miller, Ray - HCD (Ray.Miller@houstontx.gov)'; 'Kennisha London (Kennisha.London@houstontx.gov)'; Marquez, Veronica - MYR; Bonham, Brenda - MYR; Washington, Amanda - MYR Documents for HCD meeting 1 MST agenda 8.24.2021.docx; 2 MEMO - Summary of 2021 9% Allocations.docx; 3 MEMO - DR-17 MULTIFMAILY ROUND 3 - SUMMARY OF AWARDS V2 08232021.docx; 4 Council Agenda Memo for MST 082421.pdf

Mayor, Please see attached the documents for today's meeting. Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282

www.houstontx.gov/housing

1

MST meeting with HCDD August 24, 2021

1. Economic Development Program • Program provides up to $150,000 to microenterprises (5 employees or less) impacted by Harvey • First two checks were sent last week, with four more checks delivered by next week • GLO has another 9 applications in process • Pipeline has $2.58 million of requests 2. Gulf Coast Building and Construction Trades Council •

Meeting with Paul Puente

3. Homestead Retail Project (Old Kmart) •

•

127,000 s/fretail portion: waiting for documents from Al i. Key here is the environmental review which will detennine whether and how difficult it will be to use HUD funding. 46 acres of adjacent land owned by the City in 5 different parcels i. HPW is planning to transfer this land via a balance sheet transfer with HCFCD ii. All 5 parcels sit within the 100-year flood plain, and are thus not suited for SF development iii. A plume of contaminants has moved over the property from the adjacent retail strip

4. DR-17 Multifamily Round 3 (See attached memos) • 9%summaiy i. 7 developments requested funding from City in cun-ent round ii. 1 requested funding from City in prior round iii. 4 did not request in additional funding • Per unit costs for affordable units 1. $32,258 to $52,267 except for Avenue CDCs small rental development ($102,705) 11. Deals not recommended have the following costs per affordable unit 1. Ben-y City Centre: $194,233 (20 units) 2. Huntington at Bay Area: $170,454 (88 units) 3. New Faith Senior Village: $113,281 (128 units) 5. Wesley Church purchase update • • •

Scheduled for 9/1 Council date Lease back for less than 1 year Due diligence is for 7 months

6. Council Agenda Memo (see attached)

Interoffice Memo

CITY Of HOUSTON

HOUSING AND COMMUNITY DEVELOPMENT

Date: August 16, 2021 (updated August 23, 2021)

To:

Tom Mccasland

From:

Ray Miller

Subject:

Summary of Awards - 2020 Multifamily DR-17 NOFA- Round 3

NOFAOverview The City of Houston received a direct allocation from the Texas General Land Office of $1,175,954,338 for development and implementation of programs under the CDBGDR-17 grant. Of this amount, HCDDhas identified approximately $450 million to be directed into the Multifamily Program. On June 4, 2021 HCDDissued a 3rd NOFA to secure proposals to finance multifamily developments. After the reallocation of the Houston Area Women's Center that will be funded with HOME-ARPfunds, HCDD subscribed approximately $426 million in contract awards throughout 36 transactions and an estimated $16 million in project delivery costs. Of the total $450 million budget for Multifamily, approximately $26.7 million remains to be allocated. In June, HCDDreleased a third round NOFA to subscribe its remaining allocation. In total, HCDDreceived 12 applications totaling $85 million in total requests. Of these, 7 transactions are funded with 2021 9% housing tax credits, 3 are funded with 4% housing tax credits and 2 are conventionally financed. Selection Methodology The NOFA closed on July 3rd and HCDD received 12 applications in the NOFA.All applications met threshold review and were scored accordingly. Applications were reviewed internally by a panel of HCDDand other city personnel based on the information provided. The panel evaluated the applications against a set of predetermined scoring criteria outlined in this section. All applications received an overall score and ranked based on the merits of the submission. Scores were consolidated and tabulated on Friday, August 6, 2021. It is to be noted that an application's score and ranking does not solely determine award status. An application must clearly demonstrate the development meets one or several of the priorities outlined in the guidelines and NOFAthat will be determined by the panel. The panel will finalize and itemize a list of applications recommended to receive an award of CDBG-DRfunds. The list of recommended transactions will be presented to the Mayor's office for approval. The Mayor's Office will have the authority to approve or deny applications that meet HCDD's threshold review and are in line with the administration's priorities.

Page 1 of 4

2021 CDBG-DR17HCDDApplicant List and Recommended Awardees The developments shown below represent the highest scoring transactions form the NOFA and ranked on the available amount of funds for the projects. This list accounts form the remaining available in the MFRP of $26,232,480. Funds were allocated in the order of scoring priority with the remaining allocation awarded to the final transaction. Development

Developer

Other

Total

LMI

Financing Conv.

Units

Units

13

13

H

General

63

Dist.

Housing Type

NOFA

Avenue CDCScattered Site

Avenue

Arcadia Terrae

Resolution Companies

9%

120

79

F

General

59

New Hope at Berry Campanile at

New Hope Housing Kilday Realty Mark /Dana Corp

4%

240

240

H

General

58

9%

117

93

C

55

4%

177

177

J

Senior (55+) General

Minimax

Fairwaysat Westwood

CDC

I

Total

HCDD Priority

Application Request

Score

52

High Opportunity/ TOD Alief / Westwood Complete Community Supportive Housing High Opportunity Alief / Westwood Complete Community

667

!

'

Recommended

Remaining

LMI Unit

Awardi

MFRPAmount

Allocation

$1,335,171

$1,335,171

$24,897,309

$102,705

$4,000,000

$3,000,000

$21,897,309

$37,974

$10,000,000

$10,000,000

$11,897,309

$41,666

$5,200,000

$3,000,000

$8,897,309

$32,258

$15,000,000

$8,897,309

$0

$52,267

$35,535,171

$26,897,309

2021 CDBG-DR17Conditional Awardees If any of the recommended deals are not viable with the remaining allocation, the following list are proposed recommendations by HCDDsubject to availability of CDBGDR 17 financing and are listed in order of priority. Development

Developer

Total

LMI

Council

Financing

Other

Units

Units

Dist.

Housing Type

NOFA

HCDD Priority

Score

Boulevard 61

DMA and Assoc

9%

100

90

J

General

50

Vista at Park Place

Atlantic Pacific Group

9%

69

62

I

General

49

Total

'

High Opportunity Transit Oriented Development

Application

Recommended

LMI Unit

Request

Award

Allocation

$5,000,000

$3,000,000

$33,333

$4,500,000

$3,000,000

$48,387

$9,500,000

$6,000,000

Page 2 of 4

1

2021 CDBG-DR17 Remaining Applicants The list below reflects transactions that fell below the scoring threshold of the scoring panel. If any transactions meet the administration's priorities, HCDD will adjust the recommendations accordingly. In addition, these transactions may be recommended in the event existing proposals in the pipeline do not close on their financing for any particular reason or if additional DR-17 funds are reallocated into MFRP. Development

Other

Total

LMI

Council

Housing

NOFA,

Financing

Units

Units

Dist.

Type

Score

Developer

I

Application

LMI Unit

Request

Allocation

Huntington at Bay Area

MGroup

9%

148

88

E

Senior

48

$15,000,000

$170,454

Westheimer Garden Villas

9%

85

82

J

Senior

48

$5,800,000

$70,731

The Rushmore

Super Urban Realty/ Texas Interfaith HTGTeam

9%

101

85

G

Family

45

$1,000,000

$11,764

New Faith Senior Village The Berry City Centre

DWR Development Mayberry Homes

4%

128

128

K

Senior

43

$14,500,000

$113,281

Conv

20

20

D

General

42

$3,884,677

$194,233

Total

Comments

Pros: Little HCDDinvestment in District E Cons: extremely high ask, seniors transaction Pros: highest scoring 9% deal Cons: poor property management history with HCDD Cons: did not require subordinate financing Pros: Strong community support Cons: low leverage Cons: no leverage, no multifamily experience

$40,184,677

1

• Amounts reflect the original application amount and are subject to revision during HCDD underwriting Please note that HCDD staff have not underwritten these transactions and allocations may vary at the time of presentation to city council.

Page 3 of 4

2 900Winston

New Construction

114

$30,042,004

$263,526

$11,230,000

Under Construction

67%

3 Bellfort Park

Rehabilitation

64

$14,083,048

$220,048

$3,500,000

Under Construction

98%

Construction Construction Construction Construction Construction

120 126 85 120 115

$22,320,000 $27,955,394 $26,624,431 $35,419,526 $33,085,918

$186,000 $221,868 $313,229 $295,163 $287,704

$2,500,000 $8,000,000 $9,400,000 $14,500,000 $12,400,000

Under Construction Under Construction Under Construction Under Construction Under Construction

99% 97% 36% 65% 55%

9 Scott Street Lofts 10 The Gale Winds Apartments 11 Avenue on 34th

New Construction Rehabilitation New Construction

123 18 70

$34,673,324

$281,897

$14,500,000

Under Construction

40%

$3 304 988 $18,187,638

$183 610 $259,823

$1650,000 $9,090,000

Under Construction Under Construction

92% 42%

12 St Elizabeth Place 13 Elgin Place 14 2100 Memorial

Rehabilitation

85

$31,465,057

$370,177

$10,174,622

Approved

0%

New Construction Reconstruction

$28,190, 721 $59,287,719 $23,157,980

$380,956 $300,953 $231,580

$10,250,000 $25,000,000 $10,000,000

Under Construction Under Construction Underwriting

0% 0% 0%

88%

4 5 6 7 8

Briarwest Apartments Edison Lofts Gala at MacGregor McKee City Living South Rice Apartments

New New New New New

Rehabilitation

74 197 100

16 West Little York 17 3300 Caroline

New Construction New Construction

150 149

$22,830,000 $36 742 209

$152,200 $246 592

$2,350,000

Under Construction

$15,000 000

Under Construction

0%

18 Dian Street

New Construction

108

$28,971,116

$268,251

$11,000,000

Under Construction

26%

19 NHH Savoy

New Construction

120

$33,794,447

$281,620

$13,200,000

Underwriting

0%

20 Regency Lofts

New Construction New Construction New Construction

$35,005,530 $37,887,698 S26 015 366 $25,058,075

$291,713 $280,650 S32S192 $313,226

$14,000,000 $14,350,000 57 500 000 $11,130,000

Under Construction Under Construction UnderwritinPUnderwriting

30% 26% 0% 0%

15 W. Leo Daniels Towers I

New Construction

120 135 80 80

24 Summit at Renaissance Park

New Construction

325

$81,219,572

$249,906

$14,900,000

Under Construction

0%

25 Caroline Lofts

New Construction New Construction

119 94

$39,864,269 $33,965,013

$334,994 $361,330

$19,619,370 $8,000,000

Under Construction Under Construction

5% 0%

21 Heritage Senior Residences 22 Lockwood South 23 Lockwood South- Phase JI

26 Temenos Place II 27 Hay Center Campus

New Construction

so

$29,869,316

$597,386

$5,000,000

Underwriting

0%

28 Canal Lofts

New Construction

150

$34,425,000

$229,500

$12,000,000

Under Construction

20%

29 Ella Grand

New Construction

145

$31,852,011

$219,669

$12,000,000

Underwriting

0%

Recon

111

$20,699,039

$186,478

$14,089,000

Underwriting

0%

$94,076,060

$219,804

$17,000,000

30 Jackson Hinds Gardens 31 801St.Joseph

Rehab

428

Underwriting

0%

32 OSTLofts

New Construction

135

$33,508,508

$248,211

$13,000,000

Underwriting

0%

33 Richmond Senior Village

New Construction

125

$36,483,974

$291,872

$15,500,000

Underwriting

0%

34 Parkway Meadows

New Construction New Construction

82

$22,593,342

$275,529

$10,000,000

Underwriting

0%

77

$27,675,124

$359,417

$9,000,000

Underwriting

0%

36 Connect South Apartments- Phase 2 New Construction Total

72

$30,633,964

$425,472

$14,500,000

Underwriting

0%

35 Connect South Apartments

4366

$

1,185,734,964

$

271,584 Project Delivery Program Total Date MFRPProgram Total Remaining Allocation

$ $ $ $ $

407,817,992 16,000,000 423,817,992 450,050,472 26,232,480

Page 4 o/4

Document 12

Mccasland, Tom - HCD From: Sent: To:

Cc:

Subject: Attachments:

Mccasland, Tom - HCD Wednesday, September 1, 2021 12:51 PM Sylvester Turner - MYR Hunter, Marvalette - MYR; lcken, Andy - MYR; 'Kennisha London (Kennisha.London@houstontx.gov)'; Bonham, Brenda - MYR; Washington, Amanda MYR; Marquez, Veronica - MYR Documents for HCDD meeting 1 MST agenda 9.1.2021.docx; 2 MEMO - DR-17 MULTIFMAILY ROUND 3 - SUMMARY OF AWARDS V2 08272021 (Draft).docx; 3 Council Agenda Memo for MST 090121.pdf

Mayor, Please see attached the documents for today's meeting. Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282

www.houstontx.gov/housing

1

MST meeting with HCDD September 1, 2021

1. Rental Assistance Final Budget Anticipate exhausting all funds by October 31, 2021 • Baker Ripley: $22,200,000 • Catholic Charities: $22,200,00 • Alliance: $2,075,901

2. St. Elizabeth Update Fifth Ward multifamily development/rehab of St. Elizabeth Hospital on Lyons Ave Fifth Ward CDC/Kathy Payton is the developer paiiner • Closed yesterday • Groundbreaking scheduled for 9/24 3. Single-family large tract development • Guidelines approved by Council today • Website with pre-application to launch this week • Priorities are as follows: o 40+ homes with affordable homes representing 40% of homes o Site control or close ready to obtain site control prior to full application submission o Shovel ready with preference for development to be complete before 12/2023 o No floodway development o Proven capacity from development and builder team with preference for multiple builders for large sites • Discussions have already begun with following entities regarding large tract development o Habitat for Humanity o Midtown TIRZ o George Johnson/Northeast Church o Zach Burghli (developer of Towne Park) o AvenueCDC o Agape Development (Third Wai·d/South Union) 4. Multi-Family Memo (see attached) 5. Council Agenda Memo (see attached)

Interoffice

CITY OF HOUSTON

HOUSINGAND COMMUNITY DEVELOPMENT

Memo

Date: September 1, 2021

To:

Mayor Sylvester Tumer

From:

Tom McCasland

Subject:

Summary of Awards - 2020 Multifamily DR-17 NOFA-Round 3 (Updated)

2021 CDBG-DRl 7 HCDD Immediate Awardees

NQfi:!fif

The developments shown below represent transactions from the .;--.·,-·,--,,,., ;1:oposed DR-17 allocations .

9%

Huntington at Ba Area Total

148

88

498

363.

$15,ooo,M\).: ,,~15,ooo,ooo

'$:Zs,000,000

$1,232,480

$1,232,480

2021 CDBG-DRI 7 Conditional Awardees The following list are proposed CQ):J.cijtional reco~A;:~nd::::~Ibf)JC.:D~ ~]tj~bt(o availability of CDBG DR 17 financing or other financing,m4if&il@ic!jn order cif})/'iority,;thiiie\r:m~actiblii\ could be funded if previously subscribed transactions areijij~ble to cici§~~r if otherf?t.cJJJµhds ailN~llocated into the Multifamily Rental Program. Any awards must b~~~~ed on av'ii!(<!-bility of N@t ···

F

General

59

$4,000,000

$3,000,000

$3,102,691

C

Senior

58

$5,200,000

$3,000,000

$6,102,691

177

J

55+ General

52

$15,000,000

$21,102,691

$3,000,000

$24,102,691

$3,000,000

$27,102,691

Arcadia Terrae Camponile at Minimax Fairways at Westwood Boulevard 61 Vista at Park Place

Co l Re

93

9%

100

90

J

General

50

$15,000,00 0 $5,000,000

9%

69

62

I

General

49

$4,500,000

M Assoc Atlantic Pacific Grau

; • Amounts reflect the original application amount and are subject to revision during HCDDunderwriting Please note that HCDDstaff have not underwritten these transactions and allocations may vary at the time of presentation to city council

Page 1 of 1

Document 13

Mccasland, Tom - HCD From: Sent: To:

Cc: Subject: Attachments:

Ray,

Mccasland, Tom - HCD Wednesday, September 1, 2021 2:19 PM 'Miller, Ray - HCD (Ray.Miller@houstontx.gov)' 'Sellers, Derek - HCD (Derek.Sellers@houstontx.gov)' Mayor's meeting follow up 2 MEMO - DR-17 MULTIFMAILYROUND 3 - SUMMARY OF AWARDS V2 08272021 (Draft).docx

:;-I.s'.J 1)/ 1 .,

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ft.. .

<;:.')"'

rb 1

""" ,~"·...

1, 1-,·C,e,"11 "l

I~•

•

~-

J

q.

J

pnv, ~-

I provided the Mayor with a very slightly revised memo from me that reflected the changes he had requested last week. See attached. The Mayor approved us moving forward with announcing and begin work on Huntington and NHH deals. I did indicate the timing issue you flagged on NHH, but he is asking we wait for any additional funding to be confirmed before we announce any additional developments that are on the conditional awardee list. I did flag that we may have a deal falling out, but would know more details in the coming weeks. I proposed to Andy before the Mayor got on, that we try to get confirmation of whether we can move the time line up for the St. Joseph deal. I'm available to discuss next steps whenever you want to pull up and meet. Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282

www.houstontx.gov/housing

1

Interoffice

CITY OF llOUSTON

HOUSING AND COMMUNITY DEVELOPMENT

Memo

Date: September 1, 2021

To:

Mayor Sylvester Turner

From:

Tom Mccasland

Subject:

Summary of Awards -2020 Multifamily DR-17 NOFA-Round 3 (Updated)

2021 CDBG-DRI 7 HCDD Immediate Awardees The developments shown below represent transactions from the

Huntington at Ba Area Total

9%

148

88

498

$15,000,00~\

.$15,000,000

$1,232,480

$25,000,00

$25,000,000

$1,232,480

2021 CDBG-DRI 7 Conditional Awardees The following list are proposed.c:911c\iti9nal recoji~µda:;~!}6y}[(.:pD sJ%faqtto availability of CDBG DR 17 financing or other financing ~~~ iiflH~\~gjn order cifpr\orityif#iiii~ ti:~acti6ri~ could be funded if previously subscribed transactions are\ijj~ble to clos~)ir if other ~t,.kVfiinds arer~~iJ9cated into the Multifamily Rental Program. Any awards must h~f~~ed on a\i~jJ~bilityoff1199{ ····

- Scattered Site Arcadia Tetrne

F

General

59

$4,000,000

$3,000,000

$3,102,691

58

$5,200,000

$3,000,000

$6,102,691

52

$15,000,000

$21,102,691

$3,000,000

$24,102,691

$3,000,000

$27,102,691

Co Camponile at Minimax Fairways at Westwood Boulevard 61 Vista at Park Place

I

93

C

Re M

177

J

Senior 55+ General

J

General

50

$15,000,00 0 $5,000,000

General

49

$4,500,000

Assoc Atlantic Pacific Grou

9%

100

90

9%

69

62

; • Amounts reflect the original application amount and are subject to revision during HCDD underwriting Please note that HCDDstaff have not underwritten these transactions and allocations may vary at the time of presentation to city council

Page 1 of 1

Document 14

Mccasland, Tom - HCD From:

Sent: To:

Subject: Attachments:

Mccasland, Tom - HCD Friday, September 17, 2021 6:27 PM Sylvester Turner - MYR Huntington at Bay Area HMIP_NOFA_round3_v4ejm.docx

Mayor, Attached is the draft press release for New Hope Housing and Huntington at Bay Area, which you approved to move forward two weeks ago. Before we issue the press release, I want to reiterate that moving forward on just these two deals is against staff recommendation for the reasons we originally discussed when we presented our first recommendations which are outlined below. Having said that, I have long advocated for the distinction between what staff recommends and the ability for elected officials to override that recommendation. Based on what I know now, I will ask staff to issue the press release if you direct us to move forward after considering the pro and cons below. My purpose for reiterating the staff reasons are twofold. First, knowing how busy you are, I wanted you to have the ability to reflect on these reasons outside of the context of a face to face meeting. Second, while we have previously moved forward with developments that were not staff recommended, for example Leo Daniels Tower and Edison Arts, in each of those cases our lack of recommendation was primarily premised on the capacity weaknesses-weaknesses that we still hope can be overcome by close management and scrutiny of the development team. With Huntington at Bay Area, the issue is not a capacity weakness. It is the fact that by funding Huntington we will at a minimum be putting at risk and at a maximum guaranteeing the death of at least four other developments representing more than four times the number of affordable units provided by Huntington. The issues outlined below under cons are structural issues that cannot be ameliorated by careful management. There is much to be proud of as it relates to building affordable rental homes under your administration. The clarity and transparency we have worked so hard to build has resulted in unprecedented interest from developers, all of Region 6's 9% tax credits being awarded inside the City of Houston for the past three years, deep affordability reaching more of Houston's vulnerable working families, and long 40-year affordable periods for more than 3700 affordable units across the entire City. This record is even more impressive given that many jurisdictions fight for decades over a single affordable development, while Houston is on track to add at least 37 such developments. I know that this success is only possible due to your leadership, and regardless of your decision on Huntington at Bay Area, I will always be grateful for the courage and determination you have shown to move forward on so many developments across the City. Turning to Huntington at Bay Area, the pro and cons as seen by staff are detailed below. In laying out these pro and cons, we recognize that we are working with the best information we have to date and that it is necessarily incomplete. None of these deals are closed, and a deal may change certain elements at any point prior to closing.

•

Huntington is in District E, which has not seen an affordable development since Watercrest at Kingwood was completed in June 2016. Further, Huntington is located in the Clearlake portion of District Eon the opposite side of the City from Kingwood.

Con: •

Achieves 24% of affordable the units that are possible: Only 88 units (60%) of the total 148 units in Huntington will be affordable. For the four developments being passed over, 362 (85%) out of the total 427 units will be affordable. By moving Huntington forward we will be opting for 274 fewer affordable units but paying essentially the same subsidy cost. 1

•

•

Cost per affordable unit far exceeds the alternatives: For Huntington, the City subsidy per affordable unit is $170,455. For the other three tax credit properties being passed over, the City subsidy per affordable unit is $32,258, $37,975 and $50,267. The fourth development is a small 13-unit, scattered site rental without tax credits and little leverage, and is $102,705-just 60% of Huntington's per affordable unit cost. Finally, New Hope at Berry, the other development approved by you, is only $41,667 per affordable unit. Taxpayer funds are paying for market units: The City subsidy of $15 million plus the tax credit subsidy of an estimated $13,797,240 results in a $327,241 price per affordable unit taxpayer subsidy as compared to the overall per unit cost for the total development of $252.211. In other words, there is no private fund leveraging happening on this deal, and taxpayers are overpaying $6.6 million to fund market rate units with no justifiable reason for doing so. In contrast, none of the other 3 tax credit deals is getting government subsidy that exceeds the cost of the affordable units, and all of them are using some private funds to subsidize the cost of the affordable units.

•

Leverage is nominal: With Huntington, the City is only leveraging $21.8 million of non-City funds. With the other four developments, the City is leveraging an additional $62.2 million of non-City funds.

•

General population developments are prioritized by our department, HUD, TDHCAand housing advocates: Huntington is a senior-only development rather than a general population development that could house both seniors and non-seniors. Of the four staff-recommended developments, only one was a senior development. The others represent 269 general population homes that can house low-income households of all ages including families with children.

•

Quality tax credits inside the City are waiting to replace Huntington if it can't move forward without $15 million: It is true that without City funding, the Huntington deal will likely die, just like it is true that without City funding the other four deals will likely die if Huntington is funded. However, Huntington dying means that the 9% tax credits will roll to the next highly scored deal in Region 6, which is a family development located in the Heights. This development has not applied to the City for funding, so should be able to move forward with private loans and tax credits providing close to the same number of affordable units with no additional subsidy from the City.

In summary, we as staff believe that Huntington is too expensive, subsidizes market rate units, not sufficiently leveraged, reaches a population that is too small in number and too limited in demographics (senior only), kills (or at least puts at serious risk) four other preferable deals, and will readily be replaced by a deal in the 9% round that will have equal or greater value to the effort of affordable rental homes. For these reasons, we reiterate our original recommendations in the memo that I presented to you during my August 16, 2021 meeting and re-presented with updates on August 23, 2021. Thank you for considering these points. To give fair and prompt notice to all the developers who have applied and are waiting for notice, we will release the draft press release next Tuesday if you direct us to move forward with New Hope Housing and Huntington at Bay Area. Thank you, Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282

www.houstontx.gov/housing

2

Harvey Multifamily Program to Sponsor Two New Communities $25M Final Allocation will support new construction in Northside and Southeast Houston

HOUSTON - MM/DD/YY The City of Houston Housing and Community Development Department (HCDD) has selected two properties to support in the third (final) round of its Harvey Multifamily Program. New Hope Housing Berry will provide 240 affordable homes serving families in the Northside/Northline area. Huntington at Bay Area, a 148-home mixed-income community for seniors, is in a location that will provide affordable options near Clear Lake and other southern communities of Houston. Between these two developments, the City will commit all $25M remaining as part of funding allocated for the Harvey Multifamily Program. "Building multifamily properties around Houston to replace those lost in Harvey, especially in areas that do not currently have enough multifamily home options, was a main goal of the Harvey Multifamily Program," said Houston Mayor Sylvester Turner. "With these properties in two distinct areas of the city, families and seniors will have more choice when they stay in their community." New Hope Housing Ben-y - local nonprofit New Hope Housing's twelfth property within the city of Houston - will create 240 units. The organization has set a strong precedent for providing safe, affordable homes, while ensuring residents have access to key resources and services that they may need. These new garden-style apartments, all (100%) of which will be affordable, will sun-ound outside gathering spaces, and New Hope Housing plans to create a partnership with KIPP Academy, located next door to the property. Huntington at Bay Area, developed by MGroup Companies, will create 148 one- and twobedroom apartments for seniors. This development will be the only mixed-income community for seniors in the region. Notably, it will be HCDD's first affordable community located in Council District E since 2015; there have not been any affordable homes built in the area for several years. With the addition of these two properties, the Harvey Multifamily Program is poised to create 4,754 apartments that include resilient design features and create options for low- and moderateincome Houstonians. The $450M spent by the City generates a 1:2 leverage rate, meaning that each dollar invested by HCDD will generate an additional two dollars of development. Program oversight is provided by the Texas General Land Office; funding for the program has been approved by the U.S. Department of Housing and Urban Development in support ofreplacing and revitalizing homes lost during Hun-icane Harvey. The two selected properties are detailed below, and information on all 3 8 properties selected through the program is updated regularly at recovery.houstontx.gov/multifamily.

New Hope at Ber Huntington at Ba Area

Total

New Hope Housin MGroup

4%

240

H

General

$10,000,000

$10,000,000

9%

148

E

Senior

$15,000,000

$15,000,000

$25,000,00

$25,000,000

498

The City of Houston Housing and Community Development (HCDD) makes long-term investments to better the lives of Houston residents by creating opportunities for eve1y Houstonian to have a home they can afford in a community where they can thrive. Our department will spend approximately $450 million in federal, state, and local funding this fiscal year to construct and maintain affordable homes, reduce barriers to homeownership, support the work of social service providers, build public amenities, and facilitate disaster recovery efforts. Learn more about programs and resources for Houstonians at 1vw1v.houstontx.gov/housing.

Renderings of New Hope Housing Berry (left) and Huntington at Bay Area (right) comtesy of New Hope Housing and MGroup, respectively.

Document 15

Mccasland, Tom - HCD From:

Sent: To:

Subject:

Sylvester Turner - MYR Friday, September 17, 2021 8:56 PM Mccasland, Tom - HCD Re: Huntington at Bay Area

Tom we have had detail conversations on all of these projects. It is important for affordable housing projects to be placed throughout the City and not just concentrated in a few. Very few projects have been placed in District E but heavily concentrated in B, C, D, H, I, J, K. The staff was also opposed to Edison Lofts and that has turned out to be a wonderful development that will transform that area for the better and meet housing needs. Much of what you are saying here was not said when you, Andy and Marva Jette discussed these developments with me on at least 2 occasions and with staff on one occasion. I find much of what is being said now puzzling. I will review your comments and we will discuss at the beginning of the week with the team. Sent from my iPhone

On Sep 17, 2021, at 6:27 PM, Mccasland, Tom - HCD<Tom.McCasland@houstontx.gov>

wrote:

Mayor, Attached is the draft press release for New Hope Housing and Huntington at Bay Area, which you approved to move forward two weeks ago. Before we issue the press release, I want to reiterate that moving forward on just these two deals is against staff recommendation for the reasons we originally discussed when we presented our first recommendations which are outlined below. Having said that, I have long advocated for the distinction between what staff recommends and the ability for elected officials to override that recommendation. Based on what I know now, I will ask staff to issue the press release if you direct us to move forward after considering the pro and cons below. My purpose for reiterating the staff reasons are twofold. First, knowing how busy you are, I wanted you to have the ability to reflect on these reasons outside of the context of a face to face meeting. Second, while we have previously moved forward with developments that were not staff recommended, for example Leo Daniels Tower and Edison Arts, in each of those cases our lack of recommendation was primarily premised on the capacity weaknesses-weaknesses that we still hope can be overcome by close management and scrutiny of the development team. With Huntington at Bay Area, the issue is not a capacity weakness. It is the fact that by funding Huntington we will at a minimum be putting at risk and at a maximum guaranteeing the death of at least four other developments representing more than four times the number of affordable units provided by Huntington. The issues outlined below under cons are structural issues that cannot be ameliorated by careful management. There is much to be proud of as it relates to building affordable rental homes under your administration. The clarity and transparency we have worked so hard to build has resulted in unprecedented interest from developers, all of Region 6's 9% tax credits being awarded inside the City of Houston for the past three years, deep affordability reaching more of Houston's vulnerable working families, and long 40year affordable periods for more than 3700 affordable units across the entire City. This record is even more impressive given that many jurisdictions fight for decades over a single affordable development, while Houston is on track to add at least 37 such developments. I know that this success is only possible 1

due to your leadership, and regardless of your decision on Huntington at Bay Area, I will always be grateful for the courage and determination you have shown to move forward on so many developments across the City. Turning to Huntington at Bay Area, the pro and cons as seen by staff are detailed below. In laying out these pro and cons, we recognize that we are working with the best information we have to date and that it is necessarily incomplete. None of these deals are closed, and a deal may change certain elements at any point prior to closing.

•

Con: •

•

•

Huntington is in District E, which has not seen an affordable development since Watercrest at Kingwood was completed in June 2016. Further, Huntington is located in the Clearlake portion of District Eon the opposite side of the City from Kingwood.

Achieves 24% of affordable the units that are possible: Only 88 units (60%) of the total 148 units in Huntington will be affordable. For the four developments being passed over, 362 (85%) out of the total 427 units will be affordable. By moving Huntington forward we will be opting for 274 fewer affordable units but paying essentially the same subsidy cost. Cost per affordable unit far exceeds the alternatives: For Huntington, the City subsidy per affordable unit is $170,455. For the other three tax credit properties being passed over, the City subsidy per affordable unit is $32,258, $37,975 and $50,267. The fourth development is a small 13-unit, scattered site rental without tax credits and little leverage, and is $102, 705-just 60% of Huntington's per affordable unit cost. Finally, New Hope at Berry, the other development approved by you, is only $41,667 per affordable unit. Taxpayer funds are paying for market units: The City subsidy of $15 million plus the tax credit subsidy of an estimated $13,797,240 results in a $327,241 price per affordable unit taxpayer subsidy as compared to the overall per unit cost for the total development of $252.211. In other words, there is no private fund leveraging happening on this deal, and taxpayers are overpaying $6.6 million to fund market rate units with no justifiable reason for doing so. In contrast, none of the other 3 tax credit deals is getting government subsidy that exceeds the cost of the affordable units, and all of them are using some private funds to subsidize the cost of the affordable units.

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Leverage is nominal: With Huntington, the City is only leveraging $21.8 million of non-City funds. With the other four developments, the City is leveraging an additional $62.2 million of non-City funds.

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General population developments are prioritized by our department, HUD, TDHCA and housing advocates: Huntington is a senior-only development rather than a general population development that could house both seniors and non-seniors. Of the four staff-recommended developments, only one was a senior development. The others represent 269 general population homes that can house low-income households of all ages including families with children.

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Quality tax credits inside the City are waiting to replace Huntington if it can't move forward without $15 million: It is true that without City funding, the Huntington deal will likely die, just like it is true that without City funding the other four deals will likely die if Huntington is funded. However, Huntington dying means that the 9% tax credits will roll to the next highly scored deal in Region 6, which is a family development located in the Heights. This development has not applied to the City for funding, so should be able to move forward with private loans and tax credits providing close to the same number of affordable units with no additional subsidy from the City. 2

In summary, we as staff believe that Huntington is too expensive, subsidizes market rate units, not sufficiently leveraged, reaches a population that is too small in number and too limited in demographics (senior only), kills (or at least puts at serious risk) four other preferable deals, and will readily be replaced by a deal in the 9% round that will have equal or greater value to the effort of affordable rental homes. For these reasons, we reiterate our original recommendations in the memo that I presented to you during my August 16, 2021 meeting and re-presented with updates on August 23, 2021. Thank you for considering these points. To give fair and prompt notice to all the developers who have applied and are waiting for notice, we will release the draft press release next Tuesday if you direct us to move forward with New Hope Housing and Huntington at Bay Area. Thank you, Tom Mccasland Director City of Houston Housing and Community Development Dept. 2100 Travis Street I 9th Floor I Houston TX 77002 832.394.6282

www.houstontx.gov/housing <HMfP_NOFA_round3_v4 ejm.docx>

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