Multi-Family Development

Project Description

The Multi-Family Development program provides funds for the acquisition, rehabilitation, reconstruction, and new construction of affordable multi-family housing projects in Harris County. For each of these developments, Harris County will impose new deed restrictions that extend the tenant income restrictions, rent limits, and period of affordability for at least 20 years for properties acquired. The affordable rental units created or preserved by the program will be restricted to low- to moderate-income (LMI) residents. The program will increase the affordable housing stock in Harris County and provide more options for renters.

Kingsland Park

The Kingsland Park Apartments is a rental property that is exclusively for seniors. The apartment is made of five buildings with a mix of one- and two-bedroom units. This rental property was initially funded with Community Development Block Grant- Disaster Recovery (CDBG-DR) funds to construct 198 rental units for seniors. The units are a mix of affordable units and market-rate units. A total of 141 units are affordable, and 57 are market-rate units. The existing property has an affordability period of 20 years. Approximately $4.25 million in ARPA funds will be used for Harris County to acquire and own the land, and the affordability period will be extended to 99 years. This project would convert five of the 57 market-rate units to affordable units for seniors making 65% or less of AMI. This would make 75% of the total units affordable. This project is exclusively targeted to seniors, a group that may be overlooked when addressing affordable housing. Low-income earning seniors with fixed incomes face difficulty when it comes to access to affordable housing. This project seeks to address this issue by exclusively targeting renting seniors for the new affordable units being constructed. The purpose of this project also includes securing affordable units with long-term affordability to ensure that low-income residents have access to affordable housing, even after the pandemic has subsided. Key outcomes and performance indicators include the number of affordable units created for seniors and the number of units provided at each level of the Area Median Income, specifically those below 65% AMI.

Knowles-Rowland House

The Knowles-Rowland House project is a permanent supportive housing development project that aims to make housing accessible to those experiencing homelessness. Approximately $7.2 million in ARPA funds will be used to acquire an existing gymnasium on the Bread of Life Campus and redevelop the structure into 31 permanent supportive housing units for persons experiencing homelessness. The development will also include lounge and dining areas for residents. A total of 31 units will be provided to individuals at the 30% AMI or below level. This development will also include supportive housing services to all residents, which include case managers, peer specialists, and resident service specialists, all provided by Knowles-Rowland House. Case Managers will provide mental health crisis intervention services, connection with mainstream benefits, and nutrition and income support. Peer specialists will provide residents with community socialization and will be responsible for maintaining overall safety and wellness. The developer will partner with Temenos Community Development Corporation to provide supportive housing services. The target populations are individuals experiencing homelessness in Harris County and the key indicator of this project includes the number of persons experiencing homelessness housed, frequency of services provided to each resident, days housed, length of time employed, and hourly income rate, to name a few.

Houston Ella Boulevard

The Houston Ella Boulevard project will be the first “equitable title” transaction conducted by the Harris County Housing Finance Corporation. This project is located in Precinct 1 and will create 146 multi-family housing units. Out of these 146 units, 115 units will be affordable units. An affordable unit matrix has been developed in order to pair AMI levels with one-, two-, and three-bedroom units. 12 units are dedicated to AMI levels of 30% or below, 46 units are dedicated to AMI levels of 31- 50%, and 57 units are dedicated to AMI levels of 51-80%. The site is ideally located close to job centers including George Bush Intercontinental Airport (IAH) Airport, healthcare facilities, hotels, restaurants, and entertainment. The site will include surface parking with perimeter fencing, luxury finishes, and amenities for families. These amenities will include a pool, fitness center, dog run, business center, children’s playroom, playground, and high-speed Wi-Fi.

Hartwood at Spring Shadows

The goal of the Hartwood at Spring Shadows program is to facilitate the construction of permanent supportive housing that will result in an increase in the supply of affordable rental options in Precinct 4 by 112 units. Funding will support the acquisition and development of Hartwood at Spring Shadows in partnership with Blazer Building. Blazer Building is a Houston-based, long-term builder and owner of affordable apartment communities, who has supervised the construction of roughly 40,000 apartment homes. The project was awarded 9% tax credits in 2022 and is nearly fully permitted with construction estimated to begin by the end of 2023. Planned property amenities include a children’s activity room, pool, fitness center, library, secured gated entry, and social services. Residents will have access to supportive services including children’s activities, adult education classes, health and wellness classes, and social activities. Target residents will have incomes at, or below, 60% AMI (including set-asides for 30% AMI and 50% AMI).

Hayes Street

The Hayes Street Development project is a mixed-use and mixed-income housing development that will provide affordable single-family and multi-family housing to low-to moderate-income families. The development includes 55 single-family units, 3 duplexes (totaling 6 single-family units), 70 multi-family units, a café, retail space, community space, green space, and streetscape improvements. In total this project will create 131 affordable units. Harris County will provide a total of $7.3 million in ARPA funds for acquisition and pre-development costs. The desired impact is to create affordable housing in an area that is susceptible to gentrification. The impact will be measured by the number of affordable units created. This includes establishing rent restrictions, income limits for applicants, and long-term affordability. Additional impacts include increasing access to affordable units to residents in the area who want to stay and establishing a restrictive land use agreement to lock in long-term affordability for 99 years.

Old Spanish Trail Lofts

ARPA funds were used for the acquisition of a multi-family development at 5520 Old Spanish Trail in Houston. The development is currently under construction and will include a total of 130 rental units, with 109 units reserved for LMI households. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, and some designated mobility units and vision/hearing units. The land associated with the development will be acquired through the Harris County Housing Finance Corporation via a ground lease structure with a minimum of a 20-year affordability period. The developer will lease the land back by paying a $20 per affordable unit fee per month that will go back into the Housing Finance Corporation to fund other affordable multi-family developments. The construction of the development is expected to be completed on or before October 2024. Designated affordable units will be provided for the target population of individuals and households at or below 80% AMI. Outside of access to affordable housing, other necessary services will be provided to tenants such as a Pre-Kindergarten Early Learning Center. The key outcomes and KPIs include units provided to income- qualified tenants at the 30% AMI, 50% AMI, and 80% AMI levels.

Avenue on 34th

ARPA funds were used for the acquisition of a multi-family development at 5520 Old Spanish Trail in Houston. The development is currently under construction and will include a total of 130 rental units, with 109 units reserved for LMI households. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, and some designated mobility units and vision/hearing units. The land associated with the development will be acquired through the Harris County Housing Finance Corporation via a ground lease structure with a minimum of a 20-year affordability period. The developer will lease the land back by paying a $20 per affordable unit fee per month that will go back into the Housing Finance Corporation to fund other affordable multi-family developments. The construction of the development is expected to be completed on or before October 2024. Designated affordable units will be provided for the target population of individuals and households at or below 80% AMI. Outside of access to affordable housing, other necessary services will be provided to tenants such as a Pre-Kindergarten Early Learning Center. The key outcomes and KPIs include units provided to income- qualified tenants at the 30% AMI, 50% AMI, and 80% AMI levels.

Meadowbrook Plaza

ARPA funds will be used for the acquisition and rehabilitation of a multi-family development at 600 E Little York. The development will include a total of 220affordable rental units for LMI households. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, six mobility units, and at least three vision/hearing units. For the acquisition portion of the project, the land associated with the development will be acquired through the Harris County Housing Finance Corporation via a ground lease structure with a minimum of a 20-year affordability period. The developer will lease the land back, by paying a $20 per affordable unit fee per month, that will go back into the Housing Finance Corporation to fund other affordable multi-family developments. For the construction portion of the project, funding will be used for mainly site work and direct construction costs, such as roofing, masonry, concrete work, doors, and window repairs. Units are provided for the target population of individuals and households at or below 80% AMI. The key outcomes and KPIs include units provided to income-qualified tenants at the 30% AMI, 50% AMI, and 80% AMI levels.

New Hope Housing Ennis

ARPA funds will be used for the acquisition and new construction of New Hope Housing Ennis, a 102-unit multi-family development for LMI seniors in Harris County. The 102-unit development will include a minimum of six mobility units and a minimum of three vision/hearing units. New Hope Housing will provide on-site supportive services available for tenants to ensure a variety of services are being provided to this vulnerable population. The project will be a newly constructed development carried out by non-profit New Hope Housing and its affiliates to provide affordable housing to seniors in Harris County. Texas Affordable Multifamily Housing for the Aging Program (TAMFAP) funds will be combined with other charitable gifts and leveraged funds committed to New Hope Housing. The project will be constructed in the East Downtown sector of Houston with a completion date no later than July 2026. Harris County will acquire the land through a ground lease structure with a minimum 20-year affordability period. New Hope Housing will be required under the ground lease to pay $20 per unit per month, which will go to the Harris County Housing Finance Corporation to fund more affordable housing projects. New Hope Housing Ennis is one of many multi-family development properties under the management of New Hope Housing. The key outcomes and indicators will be the number of seniors housed at 30% AMI, 50% AMI, and 80% AMI.

Park Row Katy Living

ARPA funds will be used for the acquisition and construction of a multi-family development at the Northwest corner intersection of Park Row and Greenhouse Rd in Houston, TX. The actual street name has not been established. The development will include a total of 93 rental units, with 58 being reserved for low- to moderate- income households. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, and some designated mobility units and vision/hearing units. For the acquisition portion of the project, the land associated with the development will be acquired through the Harris County Housing Finance Corporation via a ground lease structure with a minimum of a 20- year affordability period. The developer will lease the land back by paying a $20 per affordable unit fee per month that will go back into the Housing Finance Corporation to fund other affordable multi-family developments. The construction portion of the development will be carried out by the developer and is expected to be completed on or before December 2026. Units will be provided for the target population of individuals and households at or below 80% AMI. The key outcomes and KPIs include units provided to income-qualified tenants at the 30% AMI, 50% AMI, and 80% AMI levels.

Saddlecreek

ARPA funds will be used for the acquisition and construction of a multi-family development at 16000 Kuykendahl Rd. The development will include 72 rental units for LMI households. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, six mobility units, and at least three vision/hearing units. For the acquisition portion of the project, the land associated with the development will be acquired through the Harris County Housing Finance Corporation via a ground lease structure with a minimum of a 20-year affordability period. The developer will lease the land back by paying a $20 per affordable unit fee per month that will go back into the Housing Finance Corporation to fund other affordable multi-family developments. The construction portion of the development will be carried out by the developer and is expected to be completed on or before December 2026. Units will be provided for the target population of individuals and households at or below 60% AMI. Outside of access to affordable housing, other necessary services will be provided to tenants such as an After School Learning Center. The key outcomes and KPIs include units provided to income-qualified tenants at the 30% AMI, 50% AMI, and 80% AMI levels.

Lost Oak

Lost Oaks is an acquisition and new construction project located at 810 Oak Street in Houston that will create 78 new multi-family affordable housing units for LMI individuals and families. The unit mix will consist of eight units for those making 30% AMI or less, 32 units for those making between 31%-50% AMI, and 38 units for those making between 51%-80 AMI, The Project will consist of 23 one-bedroom units, 50 two-bedroom units, and five three-bedroom units. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, a minimum of 5% of units reserved for clients with mobility needs, and a minimum of 2% of units reserved for clients with vision/hearing needs. In addition to providing housing, the developer will provide on-site services such as credit counseling, financial planning, health screenings, and computer training. The Harris County Housing Finance Corporation (HCHFC) will own the land and the project will enter a 99-year ground lease, which will keep the project affordable for 99 years. The desired outcome is to increase the number of available and new affordable housing units for low-income individuals and households so that affordable housing is more accessible in Harris County. HCD will carry out annual monitoring to ensure compliance with rent limits applicable to either current HOME or TDHCA rent levels. In addition, the compliance monitoring will ensure that tenants are meeting income requirements via lease documentation.

Manson Place Apartments

Manson Place is an acquisition and new construction project located at 3502 Reeves Street in Houston that will create 76 multi-family housing units, with 74 affordable units reserved for LMI individuals and families. The unit mix will consist of eight units for those making 30% or less AMI, 30 units for those making between 31%- 50% AMI, and 36 units for those making between 51%-80 AMI. The affordable units will consist of 61 two-bedroom units and 13 three-bedroom units. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, a minimum of 5% of units reserved for clients with mobility needs, and a minimum of 2% of units reserved for clients with vision/hearing needs. In addition to providing housing, the developer will partner with service providers to provide educational and career services to residents. The Harris County Housing Finance Corporation (HCHFC) will own the land and the project will enter a 99-yearground lease, which will keep the project affordable for 99 years. The desired outcome is to increase the number of available and new affordable housing units for low-income individuals and households, so that affordable housing is more accessible in Harris County. HCD will carry out annual monitoring to ensure compliance with rent limits applicable to either current HOME or TDHCA rent levels. In addition, the compliance monitoring will ensure that tenants are meeting income requirements via lease documentation.

Tidwell

Tidwell Apartments is an acquisition and new construction project located at 300- 334 Tidwell Road in Houston that will create 99 new multi-family affordable housing units for LMI elderly residents. All units will be affordable and a designated senior multi-family development; the unit mix will consist of 16 units for those making 30% or less AMI, 0 units for those making between 31%-50% AMI, and 83 units for those making between 51%-80 AMI. The project will consist of 98 one-bedroom units, one two-bedroom unit, and 0 three-bedroom units. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, a minimum of 5% of units reserved for clients with mobility needs, and a minimum of 2% of units reserved for clients with vision/hearing needs. The Harris County Housing Finance Corporation (HCHFC) will own the land and the project will enter a 99-year ground lease, which will keep the project affordable for 99 years. The desired outcome is to increase the number of available and new affordable housing units for low-income individuals and households so that affordable housing is more accessible in Harris County. HCD will carry out annual monitoring to ensure compliance with rent limits applicable to either current HOME or TDHCA rent levels. In addition, the compliance monitoring will ensure that tenants are meeting income requirements via lease documentation.

New Hope Housing Avenue C

New Hope Housing Avenue C is an acquisition and new construction project located at 7520 Avenue C in Houston that will include 120 affordable rental units reserved for low-income residents. The unit mix will consist of 19 units for those making 30% or less AMI, 44 units for those making between 31%-50% AMI, and 57 units for those making between 51%-80 AMI. The project will consist of 90 one-bedroom units and 30 two-bedroom units. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, a minimum of 6 units reserved for clients with mobility needs, and 3 units reserved for clients with vision/hearing needs. The Harris County Housing Finance Corporation (HCHFC) will own the land and the project will enter a 99-year ground lease, which will keep the project affordable during that timeframe. The desired outcome through the partnership between the HCHFC and the Harris County Housing and Community Development Department (HCHCD) is to increase the number of available and new affordable housing units for low-income individuals and households and to emphasize housing choice in a way that aims to offer home owning opportunities to families and community facing economic barriers.

EMLI Mesa Gardens

EMLI at Mesa Gardens is an acquisition and new construction project located at 10199 Mesa Drive in Houston that will include 300 affordable rental units reserved for low-income residents. The unit mix will consist of 15 units for those making 30% or less AMI, 0 units for those making between 31%-50% AMI, and 285 units for those making between 51%-80 AMI. The project will consist of 90 one-bedroom units, 182 two-bedroom units, and 28 three-bedroom units. A minimum of 5% of units reserved for clients with mobility needs, and a minimum of 2% of units reserved for clients with vision/hearing needs. The Harris County Housing Finance Corporation (HCHFC) will own the land and the project will enter a 99-year ground lease, which will keep the project affordable during that timeframe. The desired outcome through the partnership between the HCHFC and the Harris County Housing and Community Development Department (HCHCD) is to increase the number of available and new affordable housing units for low-income individuals and households and to emphasize housing choice in a way that aims to offer home owning opportunities to families and community facing economic barriers.

The Rushmore

The Rushmore is an acquisition and new construction project located at 800 Highway 6 South in Houston that will include 101 rental units, with 85 affordable rental units reserved for low-income residents. The unit mix will consist of 9 units for those making 30% or less AMI, 35 units for those making between 31%-50% AMI, and 41 units for those making between 51%-80 AMI. The project will consist of 28 one-bedroom units, 50 two-bedroom unit, and 19 three-bedroom units. The total units also include a minimum of five units reserved for clients through the Coordinated Access System, a minimum of six units reserved for clients with mobility needs, and three units reserved for clients with vision/hearing needs. The HCHFC will own the land and the project will enter a 99-year ground lease, which will keep the project affordable during that timeframe. The desired outcome through the partnership between the HCHFC and HCD is to increase the number of available and new affordable housing units for low-income individuals and households and to emphasize housing choice in a way that aims to offer homeownership opportunities to families and communities facing economic barriers.

COMMUNITY ENGAGEMENT

Harris County utilized it’s My Home Is Here needs assessment as a guide in developing the program. The needs assessment engaged the community to determine the current conditions and gaps regarding housing and the community’s desires on how to best to address the issues.

TARGET IMPACT

To acquire and/or preserve 18 multi-family developments

  • Number of acquisition opportunities presented for approval
  • Number of acquisitions closed
  • Number of affordable units created/preserved

USE OF EVIDENCE & PROGRAM EVALUATIONS

There is an affordability crisis in Harris County. HUD defines “affordable” as having housing costs that total less than 30% of a household’s income. In Harris County, almost 500,000 households with incomes below $75,000 are paying more than 30% of their incomes for their homes today. The cost burden of housing affects people across job types, income levels, and neighborhoods

There are several reasons for the affordability crisis, including:

Lack of availability of affordable homes for extremely low-income households

  • Maintenance and housing quality challenges
  • Spatial mismatch between need and available homes (i.e. number of bedrooms to occupancy comparison)
  • Effects of the COVID-19 pandemic

The COVID-19 pandemic has caused housing instability for an increased number of families due to job loss and income reduction or loss. Additionally, costs of goods have risen and impacted the affordability of construction and repair. These factors, combined with a projected population growth of 200,000 households in the next ten years, create a growing demand for housing. To meet projected needs and support existing residents, it is estimated Harris County will need an additional 20,000 new homes per year, primarily for those households earning less than $35,000 per year.

PHOTOS