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EIC approves amendment to Habitat for Humanity grant to adjust resales and funding timing
Summary
The EIC voted to amend its economic development grant agreement with Habitat for Humanity to remove an 80% area‑median income cap in the workforce housing definition, add a subordination clause limiting resale price treatment, and to allow earlier disbursement of a second tranche so contractors can be paid before October.
The Economic Improvement Corporation voted to amend the economic development grant agreement with Habitat for Humanity, approving a set of contract changes that revise the definition of workforce housing, add a subordination clause governing future resales, and permit an earlier payout of a second tranche of funds so construction contractors can be paid on completion.
Board materials and staff explanation said the amendment removes an explicit 80% area‑median income limit from the workforce housing definition in the agreement in order to permit Habitat to target a larger share of units at lower income tiers; the amendment also includes a new subordination clause (identified in the document as section 10.3) that restricts resale pricing if the city or Habitat must take back a property, ensuring the resale follows the recorded covenants and restrictions attached to the agreement rather than allowing unconstrained market pricing.
Staff explained the request in two parts: (1) a change to the workforce‑housing wording so Habitat could reach households at lower income levels and (2) relief on the payment timing for the grant. Habitat asked that the second tranche — originally scheduled to be disbursed in the next fiscal year on Oct. 1 — be available sooner so the nonprofit could pay its contractors upon construction completion in June. Staff said the project dollars are already allocated across fiscal years and finance reviewed the request; staff recommended approval.
Mary Campana, representing Habitat for Humanity and present at the meeting for questions, did not deliver extended remarks but was available to answer board questions. A citizen speaker, George Baruti, addressed the board and urged review of statutory references; he cited Texas Local Government Code section 505.153 and U.S. Code Title 42 §12745 and suggested confirmation the agreement language aligns with statutory requirements.
The board considered the amendment and approved it. A board member moved to amend the economic development grant between Habitat for Humanity and EIC “as presented.” A second was received. The chair called for approval by raising hands; the motion passed. No roll‑call vote tally was recorded in the meeting minutes provided.
