STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: December 9, 2020
COUNCIL DISTRICT(S): 3
DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Dr. Eric A. Johnson
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SUBJECT
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Authorize the first amendment to the conditional grant agreement with AAA Home Builder, LLC (Developer) for the development of 20 single-family homes for the Shady Hollow Project to (1) extend the completion date by one year; and (2) require Developer to plant additional trees and/or shrubs as directed by the City’s Chief Arborist - Financing: No cost consideration to the City
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BACKGROUND
On January 13, 2016, City Council authorized the Owner-Occupied Housing Development Program Statement by Resolution No. 16-0079.
On May 2, 2016, the Housing Committee received a briefing memorandum on the Notice of Funding Availability for Owner-Occupied Housing Development Project recommendations.
On May 25, 2016, City Council authorized a conditional grant agreement in the amount of $971,130.00 with AAA Home Builders, LLC for the construction of 20 homes in Oak Cliff as part of the Shady Hollow Project.
The 17 of the 20 single-family homes authorized on May 25, 2016 are completed and under contract to be sold in 2020. The remaining 3 homes are under construction with underground plumbing, water and sewer connections, and foundations having been completed in September of 2020. Construction was delayed due to work interruptions caused by COVID-19 restrictions.
Developer also experienced delays as a result of the time it took for the City to abandon a floodway-related easement on the property. On April 22, 2020, City Council authorized the abandonment of the easement by Resolution No. 20-0615. Following abandonment of the floodway easement, AAA Home Builder was able to complete water and sewer tie-ins on the homes.
In order for Developer to sell the homes, City liens must be released as each home is sold. Liens may only be released if the project is in compliance. Project can only be in compliance if the term is extended to allow for completion of the homes and their subsequent sale. At present, even homes completed and under contract to be sold prior to the initial end date of the contract cannot be sold because City liens cannot be released.
As consideration for the extension, Developer will, under the direction of the City’s Chief arborist, plant additional trees and/or shrubs to supplement the existing tree mitigation plan established for the site in 2018.
Staff recommends a first amendment to Resolution No. 16-0839 to authorize the City Manager to amend the conditional grant agreement with Developer to:
1. Extend the term of the contract by one-year to allow for City loans to be released at point of sale to eligible homebuyers.
Require Developer to plant additional trees and/or shrubs.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 13, 2016 City Council authorized the Owner-Occupied Housing Development Program Statement by Resolution No. 16-0079.
On May 25, 2016, City Council authorized a conditional grant agreement in the amount of $971,130.00 with AAA Home Builder, LLC for the construction of 20 homes in Oak Cliff as part of the Shady Hollow Project by Resolution No. 16-0839.
On April 22, 2020, City Council authorized the abandonment of portions of a floodway easement to AAA Home Builder, LLC by Resolution No. 20-0615.
FISCAL INFORMATION
No cost consideration to the City.
OWNER
AAA Home Builder, LLC
Hassan Naser, Owner