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R2009-026 - 2009-02-23RESOLUTION NO. R2009-26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS APPROVING AN APPLICATION FOR HOME FUNDS TO FINANCE SUCH PROJECT. WHEREAS, Brownstone Pearland Senior Village, Ltd. and its affiliates (the "Partnership") propose to build an affordable housing development with a maximum of 126 residential units (the "Affordable Housing") on the south side of the 8100 block of Broadway Street in the City of Pearland named the Pearland Senior Village, designated for senior citizens whose income is at or below 60% of Area Median Income; and WHEREAS, the Partnership intends to submit a joint application to the Texas Department of Housing and Community Affairs (TDHCA) for 2009 Housing Tax Credits and HOME Investment Partnership Program funds for the Pearland Senior Village; and WHEREAS, §49.9(1)(5), Texas Administrative Code, which gives Housing Tax Credit points for the commitment of development funding by local political subdivisions, states that the TDHCA HOME Program funds will not qualify for points in this category "unless a resolution is submitted with the application from the Local Political Subdivision authorizing that the Applicant act on behalf of the Local Political Subdivision in applying for HOME or Housing Trust Funds from TDHCA for the particular application; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:" SECTION 1. The City Council of the City of Pearland hereby confirms its support for the development and construction of the Affordable Housing for senior citizens. RESOLUTION NO. R2009-26 SECTION 2. The City Council of the City of Pearland hereby approves the Partnership's application for Tax Credits from the Texas Department of Housing and Community Affairs and authorizes and award of Tax Credits for the Affordable Housing for senior citizens pursuant to the Qualified Allocation Plan of the Texas Department of Housing and Community Affairs. SECTION 3. The City Council of the City of Pearland hereby approves the Partnership's application for HOME Funds from the Texas Department of Housing and Community Affairs, as the Partnership acting on the City's behalf, to support the Affordable Housing for senior citizens. SECTION 4. That this Resolution shall become effective immediately upon its passage. PASSED, APPROVED and ADOPTED this the 23~d day of February, A.D., 2009. TOM REID MAYOR ATTEST: N~,„.,,R,,.,,,, r o~~~a ~,~,y Y NG M x ~_: SE ETARY ~"~ APPROVED AS TO FORM: ~~or__._ ~~-. DARRIN M. COKER CITY ATTORNEY 2 Good Afternoon Mr. Eisen and Mr. Coker I am part of the group working on the Pearland Senior Village project on the south side of 518 adjacent to Tranquility Bay Apartments. We have previously had a workshop with the Council and we are proceeding with our application to the Texas Department of Housing and Community Affairs("TDHCA")for funding on this project. Part of the application process allows our application to score 18 points for a commitment of development funding by local political subdivisions. After researching this matter with TDHCA, TDHCA determined that Pearland would qualify to receive funds from the TDHCA Home Program. These funds would come at no obligation to the City of Pearland in the form of low interest loans to the Developer. We would like to apply for and put these funds to work in the Pearland community. §49.9(i)(5),Texas Administrative Code, states that the TDHCA HOME Program funds will not qualify for points in this category"unless a resolution is submitted with the application from the.Local Political Subdivision authorizing that the Applicant act on behalf of the Local Political Subdivision in applying for HOME or Housing Trust Funds from TDHCA for the particular application." Therefore we are asking the City of Pearland to pass the attached pass through resolution at the City Council's February 23 meeting. We are required to include this resolution with our application due to TDHCA February 27. The Developer is solely responsible for these funds and, other than passing this resolution, the City will have no further obligation. In return, if the project is awarded and we come to an agreement on a PD for our site, these funds will be used to develop needed senior affordable housing, generate jobs during construction and increase the property tax basis of the City of Pearland. Please add the attached Home Funds Resolution to the February 23 City Council agenda for discussion and action. Thank you for your help and please feel free to contact me should you have any questions. Please confirm receipt of this email. Kind Regards, Blake A. Rue Rue Investments MAILING ADDRESS P.O. Box 302663 Austin,Texas 78703 PHYSICAL ADDRESS "Blake Rue" To "Darrin Coker"<Dcoker@ci.pearland.tx.us>,"Bill Eisen" s; e.a`: <Blake@rueinvestments.com> <beisen@ci.pearland.tx.us> -;. cc "Britt Benton"'<britt@oryxproperties.net>,"Doak Brown'" " .V:-f? <dbrown campbellri s.com> 02/12/2009 03:35 PM @ 99 bcc Subject FW:Home Funds Resolution E: H ..ry:.::- This message has been replied to. - Mr. Coker and Mr. Eisen, Below is additional background on my request to be added to the February 23 agenda. Thank you, Blake A. Rue Rue Investments MAILING ADDRESS P.O. Box 302663 Austin,Texas 78703 PHYSICAL.ADDRESS 501 Terrace Mountain Dr. - Austin,Texas 78746 Cell: 512-294-4017 Fax: 512-628-7187 --Original Message From: Doak Brown [mailto:dbrown@campbellriggs.com] Sent:Thursday, February 12, 2009 10:54 AM To: Blake@rueinvestments.com; Alan Mueller; Britt Benton Subject: RE: Home Funds Resolution Alan, - I would like to also add a little mare info. At our work session for the PD,we told the City that we would not spring anything on them which required immediate action. I know the City was frustrated with last year's proposed project because I think the developer did this once or twice. The reason this has come up last minute was that we did not realize until late last week that Pearland was eligible for this type of funding from the Texas Department of Housing and Community Affairs("TDHCA"). In fact TDHCA originally told me that Pearland was not eligible for HOME funds from TDHCA since it was part of Brazoria County which gets its own HOME funds. As you are aware, Pearland recently choose to withdrawl from the Brazoria County Particiating Jurisdiction and now applies for its own CDBG funds. When the City did this, it then became eligible for TDHCA HOME funds. As Blake said below, if the City passes this resolution, it does not mean that they have to approve our PD. If they choose not to approve our PD,then our project cannot move forward. Also wanted to add a little more about HOME funds. HOME funds are essentially a low interest or no interest loan that can be made to the property. In our industry, the buyers of tax credits have been paying less than they used to due to the lower demand for tax credits. Consquently,with the lower purchase price of the credits,this means less equity into a project which has caused a need for additional sources , of funding. HOME funds allow this deal to work at lower equity prices which will help ensure that if this deal does get tax credits and pricing continues to fall on the credits that it will have an easier to actually close since the HOME funds help provide a cushion to the lower tax credit prices.