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DEPARTMENT OF DEVELOPMENT SERVICES
INTEROFFICE MEMORANDUM
Date: January 25, 2021
To: The Honorable Mayor and City Council
Through: Ronald "Ron" Burton, City Manager
From: Pamela D. Langford, Director of Development Services
RE: P.R. NO. 21771 —Application for Section 108 Loan
Introduction:
The intent of this Agenda Item is to authorize the City Manager to apply for a Section 108 Loan
in the amount of$4,500,000.00 with the U.S. Department of Housing and Urban Development
(HUD) for the rehabilitation of a 41,571 square feet facility known as the New! City of Port
Arthur Health Department, located at 5860 9th Avenue, Port Arthur, Jefferson County, Texas
(located north of State Highway 73 and known as the former Texas Department of Human
Services).
Background:
Enacted by Congress in 1974, the U.S. Department of Housing and Urban Development's
(HUD) Section 108 Loan Guarantee Program(Section 108)provides Community Development
Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to
access low-cost, flexible financing for economic development, housing, public facility, and
infrastructure projects. Communities can use Section 108 guaranteed loans to either finance
specific projects or to launch loan funds to finance multiple projects over several years. Section
108's unique flexibility and range of applications make it one of the most potent and essential
public investment tools that HUD offers to state and local governments.
Communities who borrow funds guaranteed by HUD through the Section 108 Program can
borrow up to five times its annual approved CDBG entitlement amount and must pledge their
current and future CDBG allocations to repay and secure the loan. Also, the borrower will be
required to pledge additional security for the loan. Additional security may include property
liens or other collateral.HUD is flexible and will work with the City to identify proper collateral.
_"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
The City of Port Arthur currently has a borrowing capacity of$5,762,855.00 to access Section
108 financing for eligible projects.
Projects funded through the 108 Loan Program must meet one of the three National Objectives
for CDBG:
• Principally benefit Lot to Moderate Income"LMI"persons.
• Assist in the elimination or prevention of slum and blight conditions.
• Meet other community development needs that have a particular urgency and are of
very recent origin.
CDBG allocations are pledged as security for the loan to the local government, enabling HUD
to guarantee it. The guarantee can repay the loan with CDBG funds, program income or other
revenues.
Budget Impact:
The City is requesting a Section 108 Loan in the amount of$4,500,000.00. The Loan would
have a 20-year term, with no principal payments for the first two years. It will carry a fixed rate
according to a HUD public offering; or a floating rate based on the HUD formula of 90-day
LIBOR(London Interbank Offered Rate), as adjusted monthly,plus 20 basis points.
Recommendation:
It is recommended that City Council approve P.R. NO. 21771 authorizing the City Manager to
apply for a Section 108 Loan in the amount of $4,500,000.00 with the U.S. Department of
Housing and Urban Development (HUD) for the rehabilitation of a 41,571 square feet facility
known as the New! City of Port Arthur Health Department, located at 5860 9th Avenue, Port
Arthur, Jefferson County, Texas (located north of State Highway 73 and known as the former
Texas Department of Human Services).
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P. R. 21771
01/20/21 MEE
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE CITY MANAGER TO COMMENCE
THE APPLICATION PROCESS FOR A$4,500,000 SECTION 108 PROJECT
LOAN WITH THE U. S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT (HUD) FOR THE REHABILITATION OF THE FACILITY AT
5860 9TH AVENUE. THE RENOVATED FACILITY WILL BECOME THE NEW
LOCATION OF THE PORT ARTHUR HEALTH DEPARTMENT.
WHEREAS,the City staff recommends applying for a Section 108 Loan with the
Department of Housing and Urban Development for$4,500,000 for needed rehabilitation of the
vacant facility at 5860 9i1' Avenue; and,
WHEREAS,the City of Port Arthur has sold the property where the current
Health Department is located at 409 Austin Avenue. The City has entered into a lease agreement
with the new owners of the Austin Avenue property for 18 months; and,
WHEREAS, the City has purchased the property at 5860 9th Avenue for the
relocation of the Health Department; and,
WHEREAS, the new health facility will require a new roof and interior
modification to support the City's health services. The building will also accommodate space for
a police station; and,
WHEREAS, The City is requesting a Section 108 Loan with a 20-year term, with
no principal payments for the first two years. The loan will carry a fixed rate according to a
HUD public offerings; or a floating rate based on the HUD formula of 90-day LIBOR (London
Interbank Offered Rate), as adjusted monthly, plus 20 basis points (Exhibit"1" is a draft of the
Section 108 Loan application); now,therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That City Council hereby authorizes the City Manager to commence
the application process for a Section 108 Project Loan for the rehabilitation of 5860 9th Avenue.
Section 3. That a copy of the caption of this Resolution shall be spread upon the
Minutes of the City Council.
READ, ADOPTED AND APPROVED this day of
A. D., 2021 at a Regular meeting of the City Council of the City of Port Arthur Texas by the
following vote:
AYES: MAYOR;
COUNCILMEMBERS:
NOES:
THURMAN "Bill" BARTIE,MAYOR
ATTEST:
SHERRI BELLARD
CITY SECRETARY
APPROVED AS TO FORM:
VAL TIZENO
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
RON BURTON
CITY MANAGER
APPROVED AS TO AVAILABILITY OF FUNDS:
ll) �
KANDY D'NIEL
INTERIM DIRECTOR OF FINANCE
Exhibit "1"
CITY OF PORT ARTHUR, TX
Application for
Community Development Block Grant Section
108 Loan Guarantee Application
Draft 1/7/21
PORT ARTHUR HEALTH FACILITY
Submitted To
U.S. Department of Housing and Urban
Development
li
Table of Contents
The Letter of Transmittal
I) HUD Form SF 424, Application for Federal Assistance
II) General Project Description
III) National Objectives
IV) Eligible Activities
V) Compliance Statement
VI) Public Benefits
VII) Repayment and Securitization
VIII) Certifications to Accompany HUD Section 108 Loan Guaranty Program Application
IX) Exhibits
1. Census tract map, Aerial Map, Photos, and Project Floorplan
2. Project Sources& Uses
3. Cash Flow Forecast
4. Forecast Principal Repayment Schedule to Section 108 Note Holders
5. Detailed Construction Budget
X) Appendix I —Public Comments
2II) , �� �
I. HUD Standard Form 424
Application for Federal Assistance
31
II. General Project Description
A. Port Arthur Public Health Facility Project
Undertake an acquisition/rehabilitation project to assist with the redevelopment of the City
of Port Arthur Health Department building, hereinafter referred to as the Project. The
redevelopment of this building will provide health services for the residents of Port Arthur
which are predominantly low-and moderate-income persons.
Section 108 Loan funds in the amount of four million five hundred thousand ($4,500,000)
are requested to rehabilitate the 41,571 square foot facility at 5860 9th Avenue, in Port
Arthur, Texas. The City of Port Arthur acquired the property in an exchange for the
property located at 409 Austin Street, which currently houses the City of Port Arthur Health
Services. The City has entered into a lease agreement with the new owner of the Austin
Street property for 18 months after which time the City will need to relocate its health
services to the new location on 9th Avenue.
The building on 9th Avenue will require a new roof and interior modification to support the
City's health services. The building is also expected to have a police substation which will
occupy a small percentage of the space ( square feet).
The City will contract with a licensed general contractor to complete the work and oversee
the work to ensure compliance with the local building code. The City has experience
managing this type of project and has dedicated staff to support this function.
B. Project Background
Redevelopment of the building located at 5860 9th Avenue, Port Arthur, which was built in
1995,will modernize and increase efficiencies of the City of Port Arthur's Public Health
Department and allow it to continue serving the citizens of Port Arthur well into the future.
Description:
The project consists of renovating an existing building which was originally constructed in
1995; this building is a single story 40,000 square foot structure. The building is
constructed of non-load bearing masonry exterior walls with punched exterior windows and
a steel and metal deck structure on the interior. As part of the renovation, we will replace
the existing roofing system including roofing insulation; the existing roof appears to be at
the end of its life cycle and has had water infiltration in various location. Also related to the
exterior of the building, all of the exterior will be cleaned, new caulking installed were
needed to ensure a watertight exterior.
On the interior, a majority of the interior walls will be removed to accommodate the new
Health Department layout and functional needs. As part of this renovation,the critical
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support systems will be upgraded as well; new HVAC Systems and ductwork, installation of
fire sprinkler system(existing building doesn't contain sprinklers), modification and
upgrading of plumbing system to meet the new design. The electrical system will be
modified to fit the new layout as well.
New the layout will be separated into different departments and functions with some shared
common support areas. This new layout promotes a more functional utilization of the space
and allows for potential growth and expansion if needed in the future
See Exhibit 1 for what the building will look like upon completion.
C. Purpose of Loan
The City of Port Arthur proposes to finance $4,500,000 in Section 108 Loan funds for the
following purposes:
Rehabilitation of the building. See Exhibit V. for a detailed construction budget.
D. Financing Terms
The City is requesting a Section 108 Loan with a 20-year term, with no principal payments
for the first two years. The Section 108 loan will carry a fixed rate pursuant to a HUD
public offering; or floating rate based on HUD formula of 90-day LIBOR(London
Interbank Offered Rate), as adjusted monthly, plus 20 basis points.
E. The Community Development Strategy and This Project
The project anticipates serving an average of 36,000 to 40,000 persons each year. Services
include:
Women's Infants' and Children's (WIC) Services--- Supplemental Nutrition Program for
Women Infants and Children that provides supplemental foods and nutrition education to
low-income pregnant, breastfeeding, postpartum women, infants and children.
Immunizations----This Division provides immunizations to protect children, families,
schools and communities from vaccine preventable diseases. Immunizations are provided to
Medicaid, uninsured and underinsured insured children and uninsured adults. This division
plans and prepares for mass vaccination clinics.
Vital Statistics/Records----This Division issues certified copies of birth and death
certificates. Assistance is also provided in filing delayed birth certificates, amending
certificates, and filing acknowledgement of paternity forms.
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Environmental Health (Health Inspections) ----This division inspects local food service
establishments, day care centers, mobile units and school cafeterias. They also issue food
service establishment permits, temporary food permits, and liquor and beer licenses.
Environmental Health responds to all calls that may affect the public's health including
sewer calls.
Laboratory Services---- The lab provides medical lab support for the STD, Tuberculosis,
Employee Health, and Primary Health Care clinics. Pregnancy testing is also provided for
the community.
TB Services----This clinic oversees patients with Latent Tuberculosis Infection and patients
with Tuberculosis disease. X-ray services, labs and medication are provided for patients
with Latent TB Infection and TB disease free of charge.
Nurse-Family Partnership (NFP) ----Nurse-Family Partnership is an evidence-based
program which impacts the lives of first-time pregnant low-income women by improving
pregnancy outcomes, fostering economic self-sufficiency, and improving childhood growth
and development outcomes. This is a home visiting program and most of the services
provided by this division occur in the patient's homes. This Program serves four (4)
counties.
STD and Adult Health Services----This Division provides exams, treatment, counseling
and education on preventive measures for sexually transmitted diseases and other adult
health concerns.
Employee Health Service Center----This is a full-service clinic that provides primary and
preventive health care services to City employees, retirees and their dependents.
Public Health Preparedness This division assists state and local communities in the
areas of epidemiologic surveillance and manages emergency preparedness and other public
health threats. Also, assists in investigation of food borne illnesses and communicable
diseases. This division also is responsible for investigation and contact tracing for COVID.
The State Partnership Initiative to Address Health Disparities----This Division helps to
improve health outcomes for identified health disparities in this community. Services such
as blood glucose, BMI, cholesterol and blood pressure checks are provided to targeted
groups in the community.
Primary Health Services--- The Primary Health Clinic is a clinic that operates within the
Employee Health Clinic. The services in this clinic expand health and social services to
eligible clients who are at or below 200% of the federal poverty guidelines. Services
offered in this clinic includes; immunization, diagnosis and treatment of acute illnesses,
family planning, health education, diagnostic tests including lab and X-ray services for
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eligible patients.
III. National Objectives
The Community Development Block Grant program, including Section 108, requires a
project to meet one of three National Objective, as defined in the statute and HUD
regulations (24 CFR 570)which are as follows:
• Provide a benefit to low-and moderate-income persons,
• Prevent or eliminate slum and blight, or
• Meet an urgent community need that threatens the health or welfare of
residents.
The Health Facility project will meet the National Objective under §570.208(a)(1)(i),
Activities benefiting low-and moderate-income persons, area benefit. The population to be
served will be clients of programs which predominately reside in Port Arthur, TX.
IV. Eligible Activities—Project
The Health Facility project will meet eligibility guidelines 24 CFR 570.703(1),Acquisition,
construction, reconstruction, rehabilitation or installation of public facilities (except for
buildings for the general conduct of government),public streets, sidewalks and other site
improvements and public utilities.
§570.201(c)Public facilities and improvements. Acquisition, construction,
reconstruction, rehabilitation or installation of public facilities and improvements, except as
provided in 0570.207(a), carried out by the recipient or other public or private nonprofit
entities.
Eligible Activities may also include: 570.703 (b)rehabilitation of real property, (c) payment
of interest, (g) payment of issuance, (k) debt service reserve,and (n)payment of fees
charged by HUD.
V. COMPLIANCE STATEMENT
Davis - Bacon Act Compliance
The City of Port Arthur is knowledgeable of and will comply with the Davis-Bacon Act and
with Section 3 requirements. The City partners with the private sector to expand
opportunities for local residents and companies as part of its efforts to strengthen the local
economy.
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Environmental Review
The City of Port Arthur will comply with HUD's Environmental Regulations applicable to
CDBG and Section 108. No funds will be dispersed prior to environmental clearance, and it
is understood that any physical development hard costs undertaken prior to environmental
clearance cannot be reimbursed through Section 108. The City has determined the project is
Exempt/Categorically Excluded from Section 58.5 as the rehabilitation is limited to the
interior of the building and replacement of the roof, and the facility and improvements will
not be changed in size or capacity by more than 20%and the activity does not involve a
change in land use.
Citizen Participation
The City of Port Arthur assures compliance with HUD's citizen participation regulations
applicable to CDBG and Section 108, as cited at 24 CFR§570.704(a)(2)consistent with its
citizen participation plan. The Port Arthur City Council approved submission of the Section
108 Loan Guarantee Application for loan funds for the Port Arthur Regional Public Health
Facility project at its meeting.
Consistency with Consolidated Plan
The use of Section 108 Loan guarantee funds for the redevelopment of the 5860 9th Avenue
building as the City of Port Arthur a Public Health Facility, rehab project was included in an
amendment to the City's 1999-2023 Consolidated Plan and the 2020-2021 Annual Action
Plan.
Other
All other applicable statutes and regulations will be followed, see attached certifications.
VI. Public Benefit—Project
The Health Facility project will meet the National Objective under §570.208(a)(1)(i),
Activities benefiting low-and moderate-income persons, area benefit activities. An activity,
the benefits of which are available to all residents in a particular area, where at least 51
percent of the residents are low-and moderate-income persons.
The residents of the City of Port Arthur are predominately low- and moderate-income (51%
or greater, according to the most recent census data).
VII. Repayment and Securitization—Project
SOURCES AND USES OF FUNDS AND SOURCES OF REPAYMENT
See Exhibit 2 Sources and Uses of Funds, and Exhibit 3 Cash Flow Forecast.
8IF' age _.
Special Note on Uses of Section 108 Funds
To expedite construction of the proposed health facility,the City may incur expenses
for acquisition, architectural and engineering services prior to HUD approval of this project
application and pay for such expenses with general funds. The amount of general funds to
be used for such pre-approval expenses will not exceed 25%of the total proposed Section
108 funds invested in the project, as adjusted by the ratio of Section 108 funds invested to
total project costs. Until the use of Section 108 funds for the health facility is approved by
HUD, it is understood that the City's use of said funds is at the City's own risk. In the event
that HUD approval is not obtained,the City will not be able to use Section 108 funds to
repay other City sources used for the project.
The City historically utilizes state and federal grant funds to support its Health Services
Department. General funds from the City are used to make up any deficits between annual
revenues and expenses and are budgeted annually by the City. Transfers in from general
fund are made to cover actual operating shortfalls.
Repayment Obligations
The City of Port Arthur is requesting a$4.5 million loan guarantee with funds from
the sale of notes to be used to acquire and rehabilitate a building for use as a public health
facility The City intend to borrow funds for a period of 20 years. The initial interest rate is
estimated at an effective rate of %. The rate will be adjusted quarterly and will be 20
basis points above the 3-month LIBOR for the period of time the loan is with the interim
lender. Debt service payments are projected at %APR. The rate will be fixed at the
time the permanent notes are sold and is estimated at %over the effective rate for the
notes.
As for the proposed health facility,the City intends to use the Section 108 funds as
an equity investment. The facility will generate no or very little income that will be
available to repay the Section 108 funds. Therefore,the City will use a portion of its annual
Community Development Block Grant entitlement funds to repay the Section 108 funds to
HUD. The amount of CDBG funds allocated each year to debt service will vary but could
be as much as $300,000 per year through 2040.
Public Notice and Comments
The use of general funds for pre-approval costs, and the repayment of Section 108
funds from CDBG, requires the City to give notice to the public and provide an opportunity
for public comment. The following Public Notice was published in the on
. Until the 30-day comment period expires,the City will not incur any
project costs that it intends to have reimbursed from Section 108 funds. A summary of the
comments received, and the City's response, may be found in Appendix I.
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PUBLIC NOTICE
REQUEST FOR COMMENTS ON THE USE OF SECTION 108 FUNDING
FOR PROPOSED HEALTH FACILITY
The City of Port Arthur will submit an application to the Department of Housing& Urban
Development to use approximately$4.5 million in Section 108 funds for the purpose of acquiring a
building and rehabilitating it into a new health facility. It will be located at 5860 9th Avenue, Port
Arthur,TX 77642.
NOTICE IS HEREBY GIVEN THAT THE CITY(1)MAY USE A PORTION OF ITS GENERAL
FUNDS FOR CERTAIN PROJECT COSTS INCURRED PRIOR TO HUD APPROVAL OF THE
PROJECT,AND(2)WILL REPAY SOME OR ALL OF THE SECTION 108 FUNDS FROM
CDBG ENTITLEMENT FUNDS RATHER THAN FROM NON-CDBG SOURCES.
Pre-Approval Costs
To expedite construction of the proposed health facility,the City may incur expenses for acquisition,
architectural and engineering services prior to HUD approval of the project application and pay for
such expenses with general funds. The amount of general funds to be used for such expenses may
not exceed$1,500,000. Until the use of Section 108 funds for the health facility is approved by
HUD,the City's use of said funds is at the City's own risk.
Repayment with CDBG Entitlement Funds
Any Section 108 funds used by the City of Port Arthur must be repaid to HUD. The City intends to
use the Section 108 funds for the proposed health facility,and the facility will generate no or very
little income that will be available to repay the Section 108 funds. Therefore,the City will use a
portion of its annual Community Development Block Grant entitlement funds to repay the Section
108 funds to HUD. The amount of CDBG funds required will vary but could reach nearly$300,000
per year through 2040. During that time,those CDBG funds will not be available for use on other
CDBG eligible activities, including capital improvement projects for non-profit entities in the City of
Port Arthur.
Public Comments are being accepted for 30 days from the date of this notice on the City's use of
Section 108 funds as described above. Comments may be submitted orally or in writing to:
Mary Essex
Grants Program Administrator
444 4th Street
Port Arthur,TX
(409)983-8251
Telecommunications for the deaf is i .
.............................
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V. Certifications to Accompany HUD Section 108 Loan Guaranty Program Applications
for Entitlement Public Entities (See Exhibit 6)
111Pagc
Addenda
Exhibit 1:
Census Tract Map,Aerial Map, Photo and Project Floorplan
Exhibit 2:
Project Sources and Uses
Exhibit 3:
Cash Flow Forecast
Exhibit 4:
Forecast Payback Schedule to Section 108 Note Holders
Exhibit 5:
Construction Budget
Exhibit 6:
HUD Certifications to Accompany HUD Section 108 Loan Guaranty Program
Application for Entitlement Public Entities
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EXHIBIT 1
City of Port Arthur-Census Data
OBJECTID 191777
GEOID 4.82E+11
Source 2015ACS
geoname Block Group 1, Census Tract 70.02,Jefferson County,Texas
Stusab TX
Countyname Jefferson County
State 48
County 245
Tract 7002
Blckgrp 1
Low 535
Lowmod 1015
Lmmi 1445
Lowmoduniv 2885
Lowmod_pct 35.18
uclowmod
ucLowmod_p 0
MOE_Lowmod +/-11.30
MOE_ucLowm
Shape Area 0.000690936
Shape Length 0.140845054
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EXHIBIT 2
Port Arthur Health Department
Exhibit 2. Sources & Uses of Funds
Sources of Funds:
Section 108 Loan Guaranty $4,500,000
Acquisition -City of Port Arthur 1,665.000
Total Sources: $6,165,000
Uses of Funds:
Acquisition $1,650,000
Hard Construction (40750sf @$100.98psf) 4,115,000
Architectural & Engineering 42,750
Furnishing and Equipment 241,150
Section 108 Fee (2.58%) 116,100
Total Uses: $6,165,000
EXHIBIT 3
19 I
PORT ARTHUR PUBLIC HEALTH DEPARTMENT
OPERATING PRO F Oft MA zul Z.Pli 2022 2Q22 2122 ME 2 222 2030 2031 2032
REVENUES
Intergovernmental $ 2,205.894 $ 2.272,071 5 2,340,233 $2.410,440 $2,482.753 $2,557,238 3 2,633.953 $2.712.971 3 2.794,360 $2.878.191 $2,984,537 $ 3.053,473
Transfers In ham General Fund 0 125,080 $ 128,832 5 132.697 $ 138.678 5 140,779 $ 145,002 $ 149,352 $ 153,833 3 158,448 $ 163.201 $ 168,097 $ 173,140
CDBG $ 235,167 $ 311,143 3 310,681 $ 310.081 $ 311,420 $ 311,472 $ 311,296 $ 310,847 $ 311,013 $ 310,986 5 310,538 $ 310,4137
EXPENSES ENSE
Health 8 Welfare $ 2,259,082 $ 2,326,854 3 2,396,660 3 2.488,559 3 2,542,616 $2,618.895 3 2,697,462 5 2.778.385 $2,861,737 $2,947,589 3 3,036,017 $3,127.097
NET OPERATING INCOME 5 307,060 $ 385.193 $ 386,952 3 388,639 $ 392,335 3 394.815 $ 397,139 5 399.266 $ 402,084 S 404.789 $ 407.155 3 409,983
DEBT SERVICE-INTEREST NOTE' $ 70.167 $ 136.143 $ 131,881 $ 127,081 $ 122,420 3 117,472 $ 112,296 5 106,847 3 101,013 $ 94,986 $ 88,538 $ 81,487
DEBT SERVICE-PRINCIPAL NOTE• $ 165.000 $ 175,000 S 179,000 5 183.000 $ 189,000 3 194,000 3 199,000 5 204,000 3 210.000 3 216,000 $ 222,000 $ 229,000
DEPRECIATION'. $ 118,558 $ 158,077 3 158,077 $ 158,077 5 158.077 $ 158,077 3 158,077 $ 158.077 $ 158,077 5 158.077 3 158,077 $ 158,077
NET CASH FLOW $ (46,665) S (84,028) 3 (81,808) 3 (79,518) $ (77,181) 5 (74,734) $ (72,234) 5 (69.656) $ (67,008) $ (64,274) $ (61,460) S (58,561)
DCR 1.31 1.24 1.25 1.25 1.26 1.27 1.28 1.28 1.29 1.30 1.31 1.32
•$4.1 MM/20 years 03.121%
••Basea on Cost(5.765MM)/39 years
EXHIBIT 4
20
Port Arthur Health Department
Exhibit 4. Forecast Payback Schedule to Section 108 Note Holders.
Principal Repayment Schedule
Year Principal Payment
2021 165,000
2022 175,000
2023 179,000
2024 183,000
2025 189,000
2026 194,000
2027 199,000
2028 204,000
2029 210,000
2030 216,000
2031 222,000
2032 229,000
2033 237,000
2034 245,000
2035 253,000
2036 261,000
2037 270,000
2038 279,000
2039 290,000
2040 300,000
4,500,000
EXHIBIT 5
Port Arthur Health Department
Exhibit 5. Construction Budget
Public Health Facility: Square Feet $per SF Total
Rebilitation 40,750 100.98 $4,115,000
Cost
Base Bid 3,069,588.00
General Conditions/Supervision 315,000.00
Bonds and Insurance 113,162.00
Overhead& Profit(5%) 205,750.00
Contingency (10%) 411,500.00
Total Building Cost: $4,115,000
TOTAL CONSTRUCTION COSTS $4,115,000
Site Acquisition 1,650,000
Furnishings&Equipment 241,150
Architectural& Engineering 42,750
Section 108 Issuance Fees 116,100
TOTAL PROJECT BUDGET $6,165,000
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22 I ,
EXHIBIT 6
vIP , ee
ENTITLEMENT PUBLIC ENTITY CERTIFICATIONS
In accordance with the applicable statutes and the regulations governing Section 108 application
submission requirements,the undersigned certifies,on behalf of the entitlement public entity and to the
best of his or her knowledge and belief,that:
1. It possesses the legal authority to make the pledge of grants required under 24 CFR 570.705(b)(2);
2. It has made efforts to obtain financing for activities described in the application without the use of the
loan guarantee, it will maintain documentation of such efforts for the term of the loan guarantee,and it
cannot complete such financing consistent with the timely execution of the program plans without such
guarantee;
3. It possesses the legal authority to submit the application for assistance under 24 CFR Part 570,Subpart M
and to use the guaranteed loan funds in accordance with the requirements of Subpart M;
4. Its governing body has duly adopted or passed as an official act a resolution, motion or similar official
action:
(a)Authorizing the person identified as the official representative of the public entity to submit the application
and amendments thereto and all understandings and assurances contained therein,and directing and
authorizing the person identified as the official representative of the public entity to act in connection with
the application to provide such additional information as may be required; and
(b)Authorizing such official representative to execute such documents as may be required in order to implement
the application and issue debt obligations pursuant thereto(provided that the authorization required by this
paragraph may be given by the local governing body after submission of the application but prior to
execution of the contract required by§570.705(b));
5. Before the submission of its application to HUD, it has:
(a)furnished citizens with information required by 24 CFR 570.704(a)(2)(i);
(b) held at least one public hearing to obtain the views of citizens on community development and housing needs;
(c)prepared its application in accordance with the citizen participation requirements and made the application
available to the public;
6. It is following a detailed citizen participation plan that meets the requirements described in 570.704(a)(2);
7. It will affirmatively further fair housing,and the guaranteed loan funds will be administered in compliance
with:
(a)Title VI of the Civil Rights Act of 1964(42 U.S.C.2000d et seq.);and
(b)The Fair Housing Act(42 U.S.C.3601-3619);
—. In the aggregate,at least 70 percent of all CDBG funds, as defined at§570.3,to be expended during the
one,two,or three consecutive years specified by the public entity for its CDBG program will be for
February 2020
Certifications to Accompany HUD Section 108 Loan
Guarantee Program Applications for Entitlement Public Entities
24 I
activities which benefit low-and moderate-income persons,as described in criteria at§570.208(a);
9. It will comply with the requirements governing displacement, relocation, real property acquisition,and the
replacement of low-and moderate-income housing described in§570.606;
10. It will comply with the requirements of 24 CFR 570.200(c)(2)with regard to the use of special
assessments to recover the capital costs of activities assisted with guaranteed loan funds;
11. (Where applicable,the public entity may also include the following additional certification.) It lacks
sufficient resources from funds provided under this subpart or program income to allow it to comply
with the provisions of 24 CFR 570.200(c)(2),and it must therefore assess properties owned and occupied
by moderate income persons,to recover the non-guaranteed loan funded portion of the capital cost
without paying such assessments in their behalf from guaranteed loan funds;
12. It will comply with the other provisions of title I of the Housing and Community Development Act of 1974
as amended (42 U.S.C.5301 et seq.)and with other applicable laws.
(Entitlement Public Entity)
(Signature of Authorized Official) (Date)
(Typed Name and Title of Authorized Official)
February 2020
Certifications to Accompany HUD Section 108 Loan
Guarantee Program Applications for Entitlement Public Entities
25 I . ,3
SECTION 108 LOAN GUARANTEE
PROGRAM Certification Regarding
Lobbying
Certification for Contracts,Grants,Loans,and Cooperative Agreements
The undersigned certifies,to the best of his or her knowledge and belief,that:
(1)No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned,to any
person for influencing or attempting to influence an officer or employee of an agency,a Member of
Congress,an officer or employee of Congress, or an employee of a Member of Congress in connection with
the awarding of any Federal contract,the making of any Federal grant,the making of any Federal loan,the
entering into of any cooperative agreement,and the extension,continuation, renewal,amendment,or
modification of any Federal contract,grant, loan, or cooperative agreement.
(2)If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any agency,a Member of Congress,an
officer or employee of Congress,or an employee of a Member of Congress in connection with this Federal
contract,grant, loan, or cooperative agreement,the undersigned shall complete and submit Standard Form-
LLL, "Disclosure Form to Report Lobbying,"in accordance with its instructions.
(3)The undersigned shall require that the language of this certification be included in the award documents
for all subawards at all tiers(including subcontracts,subgrants,and contracts under grants, loans,and
cooperative agreements)and that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction
was made or entered into.Submission of this certification is a prerequisite for making or entering into this
transaction imposed by section 1352,title 31, U.S.Code.Any person who fails to file the required
certification shall be subject to a civil penalty of not less than$10,000 and not more than$100,000 for each
such failure.
(Entitlement Public Entity)
(Signature of Authorized Official)
(Typed Name and Title of Authorized Official)
(Date)
February 2020
Certifications to Accompany HUD Section 108 Loan
Guarantee Program Applications for Entitlement Public Entities
26 I
SECTION 108 LOAN GUARANTEE PROGRAM
Statement for Loan Guarantees and Loan Insurance
The undersigned states,to the best of his or her knowledge and belief,that:
If any funds have been paid or will be paid to any person for influencing or attempting to influence an officer
or employee of any agency,a Member of Congress,an officer or employee of Congress,or an employee of a
Member of Congress in connection with this commitment providing for the United States to insure or
guarantee a loan,the undersigned shall complete and submit Standard Form-LLL,"Disclosure Form to Report
Lobbying," in accordance with its instructions.
Submission of this statement is a prerequisite for making or entering into this transaction imposed by
section 1352,title 31, U.S.Code.Any person who fails to file the required statement shall be subject to a
civil penalty of not less than$10,000 and not more than$100,000 for each such failure.
(Entitlement Public Entity)
(Signature of Authorized Official)
(Typed Name and Title of Authorized Official)
(Date)
February 2020
27 I I' 1!
Appendix I
PUBLIC COMMENTS
281f