COUNCIL COMMUNICATION
DATE:
12-16-02 |
SUBJECT: FINAL READING OF ORDINANCE #2002-O-324 Authorizing an amendment to each of the following
two contracts with Metro Affordable Housing Corporation: 1.
Contract for the use of 20 lots by Metro Affordable Housing
Corporation; and 2. Contract for HOME
Investment Partnership Program/Community Housing Development Organization
Funds (DCD 1998), to extend the period for construction of the remaining ten
of the twenty lots from December 31, 2002 to not later than December 31,
2003; and authorizing the City Manager to execute a subordination of lien for
the interim construction loan from bank for the ten (10) lots remaining. |
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INITIATED BY:
STAFF SOURCE: CYNTHIA COLLAZO ERASMO VILLARREALAsst.
City Manager C D
Director |
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PREVIOUS
ACTION: On
August 20, 2001, City Council approved Ordinance No. 2001-O-187 which authorized
the conveyance of twenty (20) City-owned lots to the Metro Affordable Housing
Corporation for a Lease-Purchase Pilot Program for residents of public
housing. Stipulated in this
conveyance was that if the Metro did not complete the construction of the
twenty (20) single-family housing units by December 31, 2002, any remaining
lots will revert to the City of Laredo for future use in affordable housing. |
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BACKGROUND: The City of Laredo entered into two contracts with
Metro Affordable Housing Corporation, one contract for the use of 20 lots by
Metro Affordable Housing Corporation, and the other for the award of 1998
HOME Partnership Program Community Housing Development Organization Funds in
the amount of $101,000 for the construction of single-family housing units. Both contracts stipulate that the homes on
the 20 lots must be constructed by December 31, 2002, If the homes were not
completed by this date, any remaining lots will revert back to the City. To date, only 10 homes have been built on
lots 16-20 inclusive, and 31-35 inclusive, but 10 lots remain pending home
construction, namely 21-30, inclusive, for which construction will not be
completed by the deadline of December 31, 2002. Staff recommends that this ordinance be passed to provide an
extension of time to construct the remaining ten (10) homes so as to continue
to provide affordable housing to families and individuals of low income.
Previously,
the City subordinated its lien position so that METRO Affordable Housing
Corporation could obtain a bank loan for the construction of the first 10
units. The METRO is seeking a second
loan to undertake the construction of the remaining 10 units. In order to facilitate this, it is
necessary that the City once again subordinate its lien. |
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FINANCIAL: N/A
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COMMITTEE RECOMMENDATION: N/A |
STAFF RECOMMENDATION: That this Ordinance be passed. |
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ORDINANCE
NO. 2002-O-324
AUTHORIZING AN AMENDMENT TO
EACH OF THE FOLLOWING TWO CONTRACTS
WITH METRO AFFORDABLE HOUSING CORPORATION :
1.)
CONTRACT
FOR THE USE OF 20 LOTS BY METRO AFFORDABLE HOUSING CORPORATION; AND
2.)
CONTRACT
FOR HOME INVESTMENT PROGRAM/COMMUNITY HOUSING DEVELOPMENT ORGANIZATION FUNDS
(DCD 1998)
TO EXTEND THE PERIOD FOR
CONSTRUCTION OF THE REMAINING TEN OF THE TWENTY LOTS FROM DECEMBER 31, 2002 TO
NOT LATER THAN DECEMBER 31 2003; AND AUTHORIZING THE CITY MANAGER TO EXECUTE A
SUBORDINATION OF LIEN FOR THE INTERIM CONSTRUCTION LOAN FROM BANK FOR THE TEN
LOTS REMAINING.
WHEREAS, Ordinance No. 2001-0-187 dated August 20, 2001
authorized the conveyance of 20 lots , namely, Lots 16-35 inclusive, Los Obispos Subdivision, Unit 5, Block 3, to
Metro Affordable Housing Corporation for a lease program for residents of
public housing and
WHEREAS, as part of that approval
the City of Laredo entered into two contracts with Metro Affordable Housing
Corporation, one called “Contract for the Use of 20 lots by Metro Affordable
Housing Corporation” and the other
called “Contract for Home Investment Program Community Housing Development
Organization Funds (DCD 1998)”
WHEREAS, Ordinance No.
2001-0-187 provided that homes on the
20 lots be constructed by December 31, 2002, And within the time period 10
homes have been built on Lots 16-20 inclusive, and 31- 35, inclusive, but 10 lots remain pending home construction,
namely, 21-30, inclusive, for which construction will not be completed by the
deadline.
WHEREAS, within the specified deadline 10 homes have been built on the ten
lots consisting of Lots 16-20 inclusive, and 31- 35, inclusive, but
construction of homes remains pending on ten lots, namely, Lots 21-30,
inclusive,, for which construction will not be completed by the deadline.
WHEREAS, THE City
Council finds it to be in the best interest of the program to grant an
extension of time so that the remaining ten lots may have homes constructed
thereon as part of the affordable housing program.
NOW, THEREFORE, BE IT
ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO:
Section 1: Paragraphs C (1) and (2) of the contract
dated May 30, 2001 between the City of
Laredo and Metro Affordable Housing Corporation relating to Home Investment
Partnership Program Community Housing Development Organization Funds, be
amended to extend the construction period for the ten lots, namely, Lots 21-30,
inclusive, be extended to December 31, 2003 as per attachment 1, and the City
Manager is authorized to sign such amendment.
Section 2: Section 3,
paragraphs B and C of the contract dated May 30, 2001 between the City of Laredo and Metro Affordable Housing
Corporation “For the use of 20 lots by Metro Affordable Housing
Corporation” be amended to extend the construction period for the ten lots,
namely, Lots 21-30, inclusive, be extended to December 31, 2003 as per
attachment 1, and the City Manager is authorized to sign such amendment.
Section 3: The
subordination of the City’s lien to that of the lending bank for the interim
construction loan is approved as per attachment 3, and the City Manager is
authorized to sign such amendment.
______________________
ELIZABETH G. FLORES
MAYOR
ATTEST
______________________
GUSTAVO GUEVARA, JR.
CITY SECRETARY
APPROVED AS TO FORM:
_______________________
JAIME L. FLORES