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City staff present loan modifications and multifamily loans for grocery site, family housing, and senior village
Summary
HCDD presented a $6.8 million loan modification for McGregor Grocery LLC, and loan requests of $4 million each for Andover Village (105 units with pre-K by Tejano Center) and New Faith Senior Village (20 senior units). Staff described deferred principal payments, 1% interest, 20-year affordability periods and financing gaps in some projects.
HCDD presented public-facilities and multifamily financing items at the May 27 committee meeting.
Ryan Bibbs described a proposed modification to the city's loan agreement with McGregor Grocery LLC for $6,800,000. The modification would not provide additional funding but would defer principal payments until the earlier of three triggers: maturity (01/29/2039), sale of the property, or assignment of the ground lease. The department said McGregor LLC (owned by Houston Housing Finance Corporation) could not obtain a property-tax exemption from the Harris County Appraisal District and therefore could not make monthly payments originally anticipated; the property will continue to pay full property taxes and full management fees. The proposed modification would set interest at 1 percent per year and convert principal obligations into a balloon payment.
Bibbs also presented a $4,000,000 loan request for Andover Village, a 105-unit family development at 6901 Belfort Ave that includes a standalone pre-K facility to be operated by the Tejano Center for Concerns; units will be restricted at 30%, 50% and 60% AMI tiers and the financing package anticipates a 20-year affordability period and 1% annual interest. Staff acknowledged a financing gap driven by rising costs and insurance and said they are coordinating with Harris County to identify additional resources.
A separate $4,000,000 HOME loan was presented for New Faith Senior Village, a 20-unit senior development on roughly 5.8 acres in Council District B; staff noted a 20-year affordability period, generator on-site, and expected 1% annual interest.
Council members and staff discussed community benefits, proximity to an airport (sound mitigation costs), job creation and the role of HEB stores as neighborhood anchors. Developers and agency representatives were present. No committee vote is recorded in the transcript; staff presented recommended ordinance language and financing terms for council consideration.
