HomeMy WebLinkAboutPR 15889: CONTRACT WITH PORT ARTHUR HOUSING AUTHORITY (8) NEW HOMES FOR LOW TO MODERATE INCOME FAMILIESMemo
Ta: Sieve Fitzgibbons, City Manager ~yJ
From: Mike Mason, Director of Housing and Neig b rhood Revita/ization
Date: Thursday, May 13, 2010
Re: P.R. 15889
RECOMMENDATION:
I recommend the Ciity Council adopt Proposed Resolution 15889 authorizing the execution of an
Interlocal Agreement between the City of Port Arthur and Port Arthur Housing Authority in the
for site preparation and construction costs to develop eight (8) new affordable homes for low
and moderate inconne persons/families that will benefit households at fifty percent (50%) of the
Area Median Income that will result in permanent housing. Said authority is subject to the
provisions of ChaptE:r 393 of the Local Government Code.
BACKGROUND:
Port Arthur Housing Authority is a chartered Texas non-profit corporation.
The Neighborhood Stabilization Program (NSP) is a part of the Housing and Economic Recovery
Act of 2008. Congress authorized an allocation of funds including the sum of$2,322,948 to
invest in the City of Port Arthur jurisdiction for purchase, rehabilitation and subsequent resale of
abandoned and foreclosed residential properties. At this time to meet a mandated timeline with
HUD, the City woulcl like to enter into an Interlocal Agreement with the Port Arthur Housing
Authority to construct eight (8) new homes.
The City of Port Arthur shall provide eight (8) lots to Port Arthur Housing Authority to perform
site preparation and construction of eight (8) new homes for low and moderate income
persons/families that will benefit households at fifty percent (50%) or below of the Area Median
Income that will result in permanent housing.
As much as 50% to 80% of the new construction homes shall be Energy STAR qualified homes
in accordance with t;he Leadership in Energy & Environmental Design (LEEDS), Green Building
System.
The Port Arthur Houising Authority will facilitate the First Time Homebuyer Program which will
include homebuyer orientation and education classes, credit and budget workshops, one on one
counseling, pre-purchase and post-purchase counseling.
Down payment and closing costs assistance of up to $20,000 per location, (up to $17,000 to
assist with down payment and $3,000 to assist with closing costs), shall be provided by the City
of Port Arthur, based on actual need and shall not exceed a total amount of $160,000.
Mav 31, 2010 is the dead/ine we are working toward for the NSP grant; therefore, it
is essential that the City contract with the Port Arthur Housing Authority to
accomplish this target date,
BUDGETARY/FISCAL EFFECT,,
Funding for the construction and site clearance activities will be provided by the Neighborhood
Stabilization Program funds, account number 129-1435-554.59-00; Project NSP001.
Funding for the down payment and closing costs assistance will be provided by the HOME
Pragram, account number 108-2141-626.54-01, Project HE 0604.
The following are the sites for new construction:
2348 5t" Street 1601 9t" Street 1947 9t" Street
2339 5t" Street 1742 9t" Street 2024 9t" Street
2334 5t" Street 1831 9t" Street
STAFFING/EMPLOYEE EFFECT:
Housing and Neighborhood Revitalization staff will be responsible for administering the contract
with Port Arthur Housing Authority.
SUMMARY:
I recommend the City Council adopt Proposed Resolution 15889 authorizing the execution of a
contract between the City of Port Arthur and Port Arthur Housing Authority for site preparation
and construction costs to construct eight (8) new affordable homes for low and moderate
income persons/families that will benefit households at fifty percent (50%) or below of the Area
Median Incame that will result in permanent housing.
P. R. 15889
5/13/10 MM/Housing
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE EXECUTION OF A
CONTRACT BETWEEN PORT ARTHUR HOUSING AUTHORITY
AND THE CITY OF PORT ARTHUR IN THE AMOUNT OF
$850,CI00 FOR SITE PREPARATION AND NEW CONSTRUCTION
TO CONSTRUCT EIGHT (8) NEW HOMES FOR LOW TO
MODERATE INCOME PERSONS/FAMILIES THAT WILL BENEFIT
HOUSEHOLDS AT OR BELOW FIFTY PERCENT (50%) OF THE
AREA MEDIAN INCOME IN THE CITY ACCOUNT 129-1435-554.59-00
PROJECT NSP001
WHEREAS, Port Arthur Housing Authority was chartered as a Texas non-profit
corporation to provide safe, decent, sanitary and affordable housing to the low and moderate
income families; anti,
WHEREAS, the Texas Department of Housing and Community Affairs (TDHCA) is
providing funding for the redevelopment of abandoned and foreclosed homes and residential
properties as authorized by the Housing and Economic Recovery Act of 2008 to the City
annually, pursuant to the Housing and Development Act of 1974 for the primary benefit of low
and moderate income persons/families; and,
WHEREAS, Pursuant to Resolution 09-457, the City of Port Arthur entered into a
contract and been approved to receive $2,322,948 of Neighborhood Stabilization Program
funding; anti,
WHEREAS, activities undertaken by Port Arthur Housing Authority must principally
benefit low and mocerate income persons/families as has been determined by the parties and is
established under thie guidelines of the Housing and Community Development Act of 1974, as
amended; and
It is in the best interest of the citizens of Port Arthur, to enter into an Interlocal
Agreement with the Port Arthur Housing Authority to perform site preparation and construction
of eight (8) new affordable homes for low and moderate income persons/families that will
benefit households at fifty percent (50%) pursuant to the authority delineated under Chapter
393 of the Local Government Code; now therefore,
BE IT (RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT ithe City Manager is authorized to execute an Interlocal Agreement (attached
hereto as Exhibit'~A''') with the Port Arthur Housing Authority in for site preparation and new
construction of eightt (8) new affordable homes for low and moderate income persons/families
that will benefit households at fifty percent (50%) pursuant to the authority delineated under
Chapter 393 of the local Government Code.
THAT the City will also provide $160,000 of HOME Program funds for down
payment and closing costs as outlined herein and further described in Exhibit "B".
THAT a copy of the caption of this Resolution be spread upon the minutes of the
City Council.
READ, ADOPTED AND APPROVED this day of
May A. D., 2010 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the
following vote: AYES: MAYOR
COUNCILMEMBERS__
NOES:
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM:
MAYOR
APPROVED AS TO AVAILABILITY OF
FUNDS:
DIRECTOR OF FINANCE
See Confidential Meimo
CITY ATTORNEY
APPROVED f=OR ADfHINISTRATION:
CI1Y MANAGER
1/
SHAWNA TUBBS,
PURCHASING MANAGER
_~~~~~~~
MIKE MASON
DIRECTOR OF HOUSIIVG AND NEIGHBORHOOD REVITALIZATION