HomeMy WebLinkAboutC2015-049 - 3/10/2015 - Approved INTERLOCAL COOPERATION AGREEMENT BETWEEN
THE CITY OF CORPUS CHRISTI AND
CORPUS CHRISTI HOUSING AUTHORITY
FOR AN AFFORDABLE HOUSING PROJECT
This Interlocal Cooperation Agreement for an Affordable Housing Project ("Project
Agreement") is entered into between the Corpus Christi Housing Authority ("CCHA"), a
political subdivision of the State, and the City of Corpus Christi ("City"), a home-rule
municipality.
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
C1, Title 12, Texas Local Government Code, Section 504.0002 et seq, ("the Act")
empowered local communities with the ability to adopt an optional local sales and use
tax as a means of improving the economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi passed
Proposition 2, New and Expanded Business Enterprises, which authorized the adoption
of a sales and use tax for the promotion and development of new and expanded
business enterprises at the rate of one-eighth of one percent to be imposed for 15
years;
WHEREAS, in the same election, the residents of the City passed Proposition 2B,
Affordable Housing, which authorized the use of a portion of the sales and use tax
approved under Proposition 2 for affordable housing, up to $500,000 annually, so long
as there are projects for which the amount can reasonably be used;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated
under Proposition 2B for affordable housing was subsequently enacted by the City's
City Council ("City Council"), and filed with the State Comptroller of Texas, effective
April 1, 2003, to be administered by the Corpus Christi Business and Job Development
Corporation's ("Corporation") Board of Directors ("Board");
WHEREAS, in an effort to fund affordable housing projects in an effective manner, the
Board determined that it is in the best interests of the residents of the City to awarded
affordable housing funds in the amount of$749,231 to the City. Said funds were
approved by Agreement whose term is from October 1, 2014 to until September 30,
2015;
WHEREAS, subsequent to the Board's funding of the City, the Board and thereafter the
City Council on January 19, 2015 and January 20, 2015 respectively, amended the
Affordable Housing Goals and Strategies to acknowledge and allow for the support of
rental housing projects as an affordable housing strategy for the citizens of the City of
Corpus Christi;
2015-049 Page 1 of 10
3/10/15
M2015-024
C.C.Housing Authority INDEXED
WHEREAS, CCHA thereafter submitted a proposal to revitalize the 400 unit La Armada
II Complex, to include the rehabilitation of 93 rental units, at an estimated cost of
approximately $5,300,000;
WHEREAS, the CCHA plans to submit an Operating Fund Financing Application
through the U.S. Department of Housing and Urban Development (HUD) in the amount
of$3,500,000;
WHEREAS, the CCHA plans to utilize HUD and Urban Development Capital Fund
Program funding in the amount of$1,300,000;
WHEREAS, as a funding gap remains, CCHA has submitted a grant application to
request from the City local housing funds in the amount of$500,000;
WHEREAS, the Board and City Council determined that it is in the best interests of the
residents of the City of Corpus Christi that a portion of the affordable housing funds
previously awarded to the City now be used to fund the CCHA's affordable rental
housing request;
WHEREAS, Chapter 791 of the Texas Government Code, as amended authorizes
contracts between local governmental agencies to perform governmental functions and
services.
In consideration of the covenants, promises, and conditions stated in this Project
Agreement, the CCHA and the City agree as follows:
1. Project Agreement to Implement Affordable Housing Project. This Project
Agreement between the CCHA and the City is executed to implement the promotion
and development of an affordable rental housing project proposed by CCHA. The
Project submitted by CCHA, entitled "La Armada II Revitalization Plan" ("Project") is
attached to this Project Agreement as Exhibit A, and is incorporated in this Project
Agreement by reference.
2. Effective Date. The effective date of this Project Agreement is the latest date on
which a party to the Project Agreement executes this Project Agreement. ("Effective
Date")
3. Expiration Date. This Project Agreement expires upon project completion. Project
shall be complete on or before the date which is 24 months from the beginning date of
the construction. Said date to be supplied by CCHA when construction begins.
4. Terms of Project Agreement.
a. CCHA has advised that the Project has an estimated cost of approximately
$5,300,000. The CCHA shall provide $4,800,000 in funds through various federal
programs and the City shall provide $500,000 in affordable housing funds.
b. Of the $500,000 in affordable housing funds to be awarded by the City,
$350,000 will be funded from FY2014-2015 City budget and the remaining
balance of$150,000 will be funded from FY2015-2016 City budget.
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c. The $350,000 in affordable housing funds will be awarded immediately upon
CCHA providing the City proof that the $4,800,000 in funds from various federal
programs have been secured and are available for expenditure on the Project;
the $150,000 will be awarded on October 1, 2015 or as soon as possible after
the adoption of the FY 2015-2016 Type A budget, upon the expected future
allocation of funds by the Type A Board to the City. The parties recognize that
appropriation of the future funds, budget approval, and a decision by the Type A
to transfer sufficient funds to the City for affordable housing in FY 2015-2016 are
within the sole discretion of the Type A Board. By execution of the Agreement,
the City does not represent that these actions will occur. All of these actions are
further subject to City Council approval.
The continuation of this Agreement after the close of any fiscal year of the City,
which fiscal year ends on September 30 annually, is subject to appropriations
and budget approval covering this Agreement as expenditure in said budget;
however, it's within the sole discretion of the City Council of the City to determine
whether to fund this Agreement. The City does not represent that this budget
item will be adopted, as said determination is within the City Council's sole
discretion when adopting each budget.
d. CCHA has advised that will provide $4,800,000 of the $5,300,000 project.
CCHA funds will include $3,500,000 from HUD's Operating Fund Financing
Program and $1,300,000 from HUD's Capital Fund Program. Should either the
$3,500,000 from the Operating Fund Program or the $1,300,000 from the Capital
Fund Program be denied by HUD, CCHA will return any and all funding that may
have been provided to CCHA by City for said Project within 20 days of being
notified that said federal funding was not approved.
e. Should CCHA be awarded all $5,300,000 in financing, CCHA will:
1. Return the 93 vacant units to service;
2. Update internal plumbing and baths for the remaining 307 units;
3. Update the building facades; and
4. Re-roof the entire complex.
f. At the project's completion, should any of the $500,000 affordable housing
funds not be fully expended on the Project, the CCHA will return the remaining
amount to the City for affordable housing.
5. Documentation.
CCHA shall submit a performance report ("Installment Report") to the City at
least once before the second funding installment of$150,000 will be provided,
and a complete performance report ("Final Report") within 30 days of the
expiration of this Project Agreement. The Installment and Final Reports must
contain all relevant details pertaining to how the funds provided under this Project
Agreement were expended for the revitalization of the property, including the
return of the 93 vacant units to service, the update to the internal plumbing and
Page 3 of 10
baths for the remaining 307 units, the update to the building facades and the re-
roofing of the complex and include any supporting documentation, including
pictures, which will substantiate the written narrative contained in the reports.
6. Amendments or Modifications.
a. No amendments or modifications to this Project Agreement may be made, nor
any provision waived, unless the amendment or modification is made in writing
and signed by persons duly authorized to sign agreements on behalf of all
parties.
b. The CCHA's Chief Executive Officer and City Manager are authorized to
execute minor amendments or modifications to this Project Agreement, by
exchange of letters with the CCHA. The minor amendments and modifications
may relate to the timing of performance and reporting. However, the minor
amendments or modifications may not increase the amounts of money available
to the CCHA under this Project Agreement.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Agreement or the application of this Project
Agreement to any person or circumstance is, to any extent, held illegal, invalid, or
unenforceable under present or future law or by a final judgment of a court of
competent jurisdiction, then the remainder of this Project Agreement, or the
application of the term or provision to persons or circumstances other than those
as to which it is held illegal, invalid, or unenforceable, will not be affected by the
law or judgment, for it is the definite intent of the parties to this Project
Agreement that every section, paragraph, subdivision, clause, provision, phrase,
and word of this Project Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this Project
Agreement, then the remainder of this Project Agreement is not affected by the
law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a
clause or provision, as similar in terms to the illegal, invalid, or unenforceable
clause or provision as may be possible and be legal, valid, and enforceable, will
be added to this Project Agreement automatically.
8. Compliance with Laws. CCHA shall comply with all applicable Federal, State, and
local government laws, rules, regulations, and ordinances which may be relevant to
CCHA's performance under this Project Agreement.
9. Jurisdiction and Venue.
a. This Project Agreement is governed by and must be construed under the laws
of the State of Texas.
Page 4 of 10
b. All actions brought to enforce compliance with this Project Agreement must be
brought in Nueces County, Texas, where this Project Agreement was entered
into and must be performed.
10. Acknowledgment and Construction of Ambiguities. The parties expressly
agree that each has independently read and does understand this Project Agreement.
By CCHA's execution of this Project Agreement, CCHA agrees to be bound by the
terms, covenants, and conditions contained in this Project Agreement. Any ambiguities
in this Project Agreement may not be construed against the drafter.
11. Indemnity. CCHA must fully indemnify and hold harmless the
City of Corpus Christi, and their officers, employees, and agents
(hereinafter, collectively "Indemnitees") from and against any and all
liability, damage, loss, claims, demands, expenses, suits, and causes
of action of any nature whatsoever on account of injury or damage to
person (including, without limitation on the foregoing, premises
defects, workers' compensation, and death claims) or property loss or
damage of any kind whatsoever which arise out of or are in any
manner connected with, or are claimed to arise out of or be in any
way connected with, either proximately or remotely, wholly or in part,
any activities by CCHA, its officers, employees, agents, members,
invitees, or independent contractors with respect to this Project
Agreement or the Project that is the subject of this Project
Agreement, regardless of whether such injuries, death, or damages
are caused, or are claimed to be caused, by the contributory
negligence of any of the Indemnitees, but not if caused by the sole
negligence of the Indemnitees unmixed with the fault of any other
person or entity. CCHA covenants and agrees that if Indemnitees, or
any of them, are made a party to any litigation against CCHA or in any
litigation commenced by any party other than CCHA relating to this
Project Agreement or Project, CCHA shall, upon receipt of reasonable
notice regarding commencement of litigation, at its own expense,
investigate all claims and demands, attend to their settlement or other
disposition, defend Indemnitees in all actions based thereon with
legal counsel satisfactory to Indemnitees, and pay all charges of
attorneys and all other costs and expenses of any kind arising from
any said liability, damage, loss, demand, claim, or action.
12. Warranties. CCHA warrants and represents to City the following:
a. CCHA is a duly organized, validly existing, and in good standing under the
laws of the State of Texas, has all authority to carry on its business as presently
conducted in Corpus Christi, Texas.
Page 5 of 10
b. CCHA has the authority to enter into and perform, and will perform, the terms
of this Project Agreement.
c. CCHA has timely filed and will timely file all local, State, and Federal tax
reports and returns required by law to be filed and all taxes, assessments, fees,
and other governmental charges, including applicable ad valorem taxes, have
been timely paid, and will be timely paid, during the term of this Project
Agreement.
d. CCHA acknowledges that the funds granted in this Project Agreement must be
utilized solely for development and expansion of affordable housing, as
described by 42 U.S.C. Section 12745 and by the terms of this Project
Agreement.
e. The CCHA agrees to obtain all necessary permits for intended improvements
or activities within the scope of funding provided for by this Agreement, which
improvements and activities shall be completed within a reasonable period of
time.
e. If an audit determines that the funds were not used for authorized purposes,
CCHA agrees to reimburse City for the sums of money spent for purposes not
authorized by law within 30 days written notice requesting reimbursement.
f. The parties executing this Project Agreement on behalf of CCHA are duly
authorized to execute this Project Agreement on behalf of CCHA.
13. Events of Default. The following events constitute a default of this Project
Agreement:
a. Failure of CCHA to timely, fully, and completely comply with any one or more
of the requirements, obligations, duties, terms, conditions, or warranties of this
Project Agreement.
b. The City determines that any representation or warranty on behalf of CCHA
contained in this Project Agreement or in any financial statement, certificate,
report, proposal, or opinion submitted to the City in connection with this Project
Agreement was incorrect or misleading in any material respect when made.
c. Any judgment is assessed against CCHA or any attachment or other levy
against the property of CCHA with respect to a claim remains unpaid,
undischarged, or not dismissed for a period of 30 days.
d. CCHA makes an assignment for the benefit of creditors.
e. CCHA files a petition in bankruptcy, or is adjudicated insolvent or bankrupt.
f. If taxes on property owned by CCHA become delinquent, and CCHA fails to
timely and properly follow the legal procedures for protest or contest.
Page 6 of 10
g. CCHA changes the general character of its business as conducted on or
following the date this Project Agreement is approved by the City.
14. Notice of Default. Should the City determine that CCHA is in default under the
terms of this Project Agreement; the City shall notify CCHA in writing of the event of
default and provide 60 days from the date of the notice ("Cure Period") for CCHA to
cure the event of default.
15. Results of Uncured Default. After exhausting good faith attempts to address any
default during the Cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of CCHA, as determined by the City, the
following actions must be taken for any default that remains uncured after the Cure
Period:
a. CCHA shall immediately repay to City, with interest at the interest rate paid by
the City on its most recently issued general obligation bonds or the maximum
interest permitted by law, whichever is less, from date of expiration of Cure
Period until fully paid, all funds not used under terms of this Project Agreement.
b. CCHA shall pay City reasonable attorney fees and costs of court to collect
amounts due to City.
c. The City shall have no further obligations to CCHA under this Project
Agreement and this Project Agreement shall terminate.
d. The City may not be held liable for any consequential damages.
e. The City may pursue all remedies available under law.
16. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Project Agreement, constitutes a waiver of any subsequent
breach of the covenant or condition of the Project Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Project Agreement, justifies or authorizes the nonobservance on
any other occasion of the covenant or condition or any other covenant or
condition of this Project Agreement.
c. Any waiver or indulgence of CCHA's default may not be considered an
estoppel against the City.
d. It is expressly understood that if at any time CCHA is in default in any of its
conditions or covenants of this Project Agreement, the failure on the part of the
City to promptly avail itself of the rights and remedies that the City may have, will
not be considered a waiver on the part of the City, but City may at any time avail
itself of the rights or remedies or elect to terminate this Project Agreement on
account of the default.
Page 7 of 10
17. Liability. The City shall not be responsible or liable for any debts, actions,
obligations, negligence or liabilities committed by or incurred by the CCHA, its staff or
clientele.
18. Relationship of Parties. In performing this Project Agreement, CCHA and the City
shall act in an individual capacity, and not as agents, representatives, employees,
employers, partners, joint-venturers, or associates of one another. The employees or
agents of either party may not be, nor be construed to be, the employees or agents of
the other party for any purpose.
19. Nonassignment. CCHA may not assign, mortgage, pledge, or transfer this Project
Agreement or any interest contained in this Project Agreement without the prior written
consent of the City.
20. Notices.
a. Any required written notices shall be sent, certified mail, return receipt
requested, addressed as follows:
If to CCHA:
Corpus Christi Housing Authority
ATTN: Executive Officer
3701 Ayers Street
Corpus Christi, Texas 78415
If to City:
City of Corpus Housing and Community Development
Attn: Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and correspondence must be sent to the City at the
following address:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner
provided in subsection a. of this section.
21. Retain Property. In exchange for this grant for rehabilitation and improvement of
CCHAs' real property the CCHA hereby agree that they shall operate the property
according to established HUD guidelines for a term of five (5) years. Should CCHA
cease operating the property according to established HUD guidelines the premises
improved by these grant funds during that five year term the CCHA shall repay the grant
amount in full, with interest at the interest rate paid by the City on its most recently
Page 8 of 10
issued general obligation bonds or the maximum interest permitted by law, whichever is
less, from the date of disbursement.
22. Financial Records. The CCHA agrees to keep all necessary books and records,
including property, personnel and financial records, in connection with the operations
and services performed under this Agreement, and shall further document all
transactions so that all expenditures may be properly audited. CCHA expressly agrees
that funds received by it through this Agreement shall not be used for any purpose
outside the scope defined in this Agreement. CCHA, shall retain all project records,
books, papers, receipts, and documents for a period of not less than five (5) years after
the project terminates and grants the City, at its election, the option of retaining upon
completion of the work such records as it might deem appropriate to hold in public
custody of the City.
23. Audit. The CCHA agrees that the City or any authorized representative may have
access to and the right to examine all records, books, papers, receipts, or documents
related to the grant or the CCHA's programs benefited by the grant and the CCHA
warrants that all such project records, books, papers and documents will be retained for
a period of not less than five (5) years after the project terminates.
24. Non-discrimination.
a. CCHA may not discriminate nor permit discrimination against any person or
group of persons on the grounds of race, gender, disability, religion, age, or
national origin in any manner prohibited by the laws of the United States or the
State of Texas.
b. The City retains the right to take any action the United States or the State of
Texas may direct to enforce this non-discrimination covenant.
25. Captions. The captions in this Project Agreement are for convenience only and
are not a part of this Project Agreement. The captions do not in any way limit or amplify
the terms and provisions of this Project Agreement.
26. Entire Agreement. This Project Agreement and the referenced and incorporated
documents constitute the entire agreement between the City and CCHA for the purpose
stated. All other agreements, promises, representations, and understandings, oral or
otherwise, with reference to the subject matter of this Project Agreement, unless
contained in this Project Agreement, are expressly revoked, as the parties intended to
provide for a complete understanding, within the provisions of this Project Agreement
and its referenced and incorporated documents, of the terms, conditions, promises, and
covenants relating to the each party's required performance under this Project
Agreement.
(Execution pages follow)
Page 9 of 10
CITY OF CORPUS CHRISTI CORPUS CHRISTI HOUSING
AUTHORITY
c-gavii 6re,--
Ronaldfitia*
Gary Allsup
City Manager President and Chief Executive Officer
3b gi 6 4._A? zi//r-
Date Date
ATTEST:
1/'
a-
Rebecca Huerta P iscilla Wal er
City Secretary Chairperson
_3 /c 1 /6— , i !S
Date Date
APPROVED AS TO FORM: N 2z!5--U211n�c�.
r........................
fts 3 15-if qtr Mock 310 .j.1L
Buck Brice (Date)
Assistant City Attorney SECIt!'fARt'
For City Attorney
Page 10 of 10
BOARD OF COMMISSIONERZS . 4-LIS Ch CORPUS CHRISTI HOUSING AUTHORITY
lt - Executive Offices
PRISCILLA WALLER,Chair 3701 Ayers Street
MARSHA HARDEMAN,Vice Chair Corpus Christi,Texas 78415
FRANK W.MONTESANO,Commissioner wor Website: www.hacc.org
VERONICA WENZEL,Commissioner
HARVEY S.LOPEZ,Resident Commissioner O� • Q{ GARY ALLSUP
`r'J1g. Axl"" President and Chief Executive Officer
361-889-3350
November 26,2014—updated January 12,2015
Corpus Christi Business and Job Development Corp
"Type A Board"
City of Corpus Christi
1201 Leopard St.
Corpus Christi,TX 78401
Please accept this letter as an application for Type A grant funding to assist and leverage the
Housing Authority of Corpus Christi's effort to revitalize the La Armada II Public Housing
Complex.
Housing Authority of Corpus Christi
The Housing Authority of Corpus Christi (CCHA) is a Local Governmental Entity charged with
providing Safe, Decent, and Affordable Housing to residents of Corpus Christi on behalf of the
City of Corpus Christi.
Homelessness and Affordable Housing
Corpus Christi has a widely recognized need for all types of affordable housing including Public
Housing units. As the City enjoys the current economic boom affordable housing has become both
less affordable and more difficult to find. Securing new units and maintaining current inventory
will help address the city's growing affordable housing and homelessness needs.
Public Housing
Public Housing serves residents who earn less than 80% of the area median income, the same as
the City's Homeownership program, though most residents earn less than 30% of the area median.
A typical family in La Armada II earns just over $9,000 per year, or $750 per month, and pays
30% of their income as rent. Public Housing serves both as a community safety net and as a
stepping stone within the workforce housing arena,
La Armada II
The La Armada II Complex was built during 1939-1940 as military housing. Since completing its
military service, La Armada II has well served citizens of Corpus Christi as a Public Housing
complex. However, after 70 years of use, the property is in desperate need of revitalization.
Currently 93 of its 400 units have been removed from service due to physical deterioration.
La Armada II Revitalization Plan
CCHA has long pursued a plan to demolish and rebuild the La Armada II complex through
EXHIBIT
CCHA Type A Funding Request
Page 2
multiple applications to the U.S. Department of Housing and Urban Development Hope VI
Program. Though federal funding to demolish and rebuild La Armada II has proven elusive,
CCHA's Board of Commissioners has not given up the dream. Instead, the Board of
Commissioners has approved an innovative revitalization plan to (1) return the 93 vacant units to
service,(2) update internal plumbing and baths for the remaining 307 units,(3)update the building
facades,and(4)re-roof the entire complex.
Our plan is to accomplish this ambitious goal utilizing HUD's Operating Fund Financing and
Capital Fund Programs. Construction is expected to be completed over a two year period within
an estimated $5.3 million budget. Funds currently available to the Housing Authority for this
project total$4.8 million,resulting in a$500,000 gap in funding.
Sources and Uses
COST
SUMMARY: Units Per Unit Extended
Full Interior 93 $10,000 $930,000
Plumbing 307 $1,500 $460,500
Baths 307 $3,200 $982,400
Exterior(per bldg) 71 $23,000 $1,633,000
Roofing(per bldg) 71 $18,000 $1.278.000
Total $5,283,900
FUNDING
SOURCES Amount
Operating Fund Financing $3,500,000
Program(CCHA Funds)
Capital Fund Program (CCHA $1,300,000
Funds)
Type A Funds $500.000
Total $5,300,000
CCHA Request
CCHA's Board of Commissioners hereby submits this grant request in the amount of$500,000 to
leverage other available funding to revitalize the La Armada II Public Housing Complex. This
request represents a 10%match from the City toward this important project.
The CCHA would be happy to enter into a written agreement with the City of Corpus Christi that,
should the Type A funds not be fully expended on this project, the CCHA would return the
remaining amount to the Type A fund.
Community Impact
In addition to adding 93 new housing units and improving the quality of life for additional 307
CCHA Type A Funding Request
Page 3
families, this initiative will have a tremendous impact on the surrounding neighborhoods and Port
Avenue, a major artery of transportation and commerce within the city. Maximizing federal
resources provides a 10-fold leveraging of Type A Funds.
The CCHA Board of Commissioners appreciates your consideration and support in this endeavor.
Best Regards,
OP4--,'
Gary Allsup
President&Chief Executive Officer
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LA ARMADA II REVITALIZATION
Corpus Christi Housing Authority
Gary Allsup, CEO
(OcQ u s cy��
1/4 .. City Council
y Presentation
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'852 December 9, 2014
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Affordable Housing Definition. . .it depends
• According to Tax Credit Industry 60%AMI
• According to HUD 30% to 80%AMI
• According to realtors homes up to $150,000
• Generally, most definitions agree that
housing expense should not exceed 30-35%
of gross income
2
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Who is eligible
for assisted Family 1 Family of 2 Family of 4
housin• ?
Low Income $29,500 / year $33,700 / year $42,100 / year
(<80% AMI) ($14.18 / hour) ($16.20 / hour) ($20.14 / hour)
LIHTC Limit $22,980 $26,280 $32,820
(<60% AMI) ($11.05/hour) ($12.63/hour) ($15.78/hour)
Very Low Income $18,450 $21,050 $26,300
(<50% AMI) ($8.87/hour) ($10.12/hour) ($12.64/hour)
Extremely Low $11,100 $12,650 $15,800
Income ($5.34/hour) ($6.08/hour) ($7.60/hour)
(<30% AMI)
3
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La Armada II - Overview
• Public Housing Complex
• Serves low income residents <80 % AMI
• Most residents earn <30 % AMI
• Typical family earns just over $9,000 per year,
or $750 per month
• Pay 30% of their income as rent
4
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/°-47 .TP;r i Corpus Christi Housing Authority •
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La Armada II - Today
• After 70 years of use, the property is in
desperate need of revitalization
• Currently 93 of its 400 units have been
removed from service due to physical
deterioration
5
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Board of Commissioners Plan
• Return the 93 vacant units to service
• Update internal plumbing and baths for the
remaining 307 units
• Update the building facades
• Re-roof the complex
20
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\ Corpus Christi Housing Authority •
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COST SUMMARY
Units Per Unit Extended
Full Interior 93 $10,000 $930,000
Plumbing 307 $1,500 $460,500
Baths 307 $3,200 $982,400
Exterior (per building) 71 $23,000 $1,633,000
Roofing (per building) 71 $18,000 $1,278,000
Total $5,283,900
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Source Amount
Operating Fund Financing Program $3,500,000
Capital Fund Program $1,300,000
Type A Grant $250,000
Total $5,300,000
22
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Rehab vs New Construction
• Rehab. . . .$5.3 million
• New Construction. . . $50 - 60 million
- (400 units at $125,000 to $140,000 per unit)
23
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Community Impact
• 93 New Housing Units
• Improved quality of life for additional 307
families
• Neighborhood Revitalization
• Port Avenue Revitalization
• 10 Fold Return on Community Investment
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Action Item Number 15-EO-03-737
Presented to the Board on March 24, 2015
APPROVAL OF REVISED INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF CORPUS
CHRISTI FOR A TYPE A GRANT FOR THE REHABILITATION OF LA ARMADA II
WHEREAS,the Board of Commissioners of the Corpus Christi Housing Authority has determined
that rehabilitation of the La Armada II Complex is necessary and a priority for completion; and
WHEREAS, the Corpus Christi Housing Authority has developed a rehabilitation plan for the La
Armada II Complex at an estimated cost of$5,300,000; and
WHEREAS, the Corpus Christi Housing Authority has identified $4,800,000 in available funds for
the rehabilitation leaving a funding gap in the amount of$500,000; and
WHEREAS, on January 19, 2015 the Corpus Christi Business and Job Development Corporation,
more commonly known as the Type A Board, awarded a grant in the amount of$500,000 to the
Corpus Christi Housing Authority to provide the needed gap funding; and
WHEREAS, on January 20, 2015 the Corpus Christi City Council approved a Resolution of
Support for the La Armada II Rehabilitation Plan; and
WHEREAS, on February 11, 2015 the City Council tabled final approval of the Type A Grant
pending completion of the Intergovernmental Agreement for the use of the funds; and
WHEREAS, on February 24, 2015 the Board of Commissioners of the Corpus Christi Housing
Authority approved an Intergovernmental Agreement with the City of Corpus Christi in the
amount of$500,000 for the rehabilitation of La Armada II Complex (Action Item Number 15-EO-
02-735); and
WHEREAS, on March 10, 2015 the City Council amended the Intergovernmental Agreement and
passed Motion 15-0054 granting final approval for a grant in the amount of $500,000 for the
rehabilitation of La Armada II Complex; and
THEREFORE, BE IT HEREBY RESOLVED by the Board of Commissioners of the Corpus Christi
Housing Authority that the revised and attached Intergovernmental Agreement with the City of
Corpus Christi in the amount of $500,000 for the rehabilitation of La Armada II Complex is
hereby approved.
BE IT FURTHER RESOLVED that Board of Commissioners of the Corpus Christi Housing Authority
makes the following certifications:
(1) That if awarded funds by the City of Corpus Christi, the Corpus Christi Housing
Authority shall implement the activities in a manner that ensures compliance
with all applicable federal, State, and local laws, rules, and regulations.
(2) That the Corpus Christi Housing Authority is not debarred or suspended under
federal or State ruling from participation in the receipt or expenditure of federal
or State funds.
(3) That the Corpus Christi Housing Authority is current with all taxes, including ad
valorem, assessments, and other government charges lawfully imposed on of
Corpus Christi Housing Authority.
The Board of Commissioners authorizes and directs the Secretary/Chief Executive Officer to
take the actions required to implement this resolution, and to do such acts and /or execute
such documents as necessary commensurate with instructions and authorizations of this
resolution, and pursuant to all local, state and federal laws and HUD regulations.
/j)
PRISCILLA WALLER, Chairperson
Board of Commissioners
Corpus Christi Housing Authority
/4
Gary Allsup, Secretary
Board of Commissioners
Corpus Christi Housing Authority