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Housing staff say Harris Center will assume ReCenter loans; committee briefed ahead of council consideration

City of Houston Housing Committee · October 15, 2024
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Summary

Housing staff told the committee that the Harris Center will assume ReCenter’s loan obligations for two affordable housing properties and that the change will not require additional city funding; staff said restrictions on unit affordability and HOME monitoring will remain in force for specified units.

Deputy Director Sellers opened the presentations and housing staff outlined a proposed transfer of operational responsibility and loan obligations from the ReCenter to the Harris Center for two city‑funded affordable housing projects. "Harris Center will assume all of Reiss Center's rights and obligations under the current existing loan with the city of Houston," a housing department staff member said, adding the action "will not require any additional city funding."

The department described the two properties separately: a 62‑unit supportive housing public‑facilities project at 3809 Main Street and a multifamily property at 1104 Alabama Street. Staff said the law requires certain affordability restrictions: the public facilities project will include 13 restricted units (10 capped at 60% AMI, three at 50% AMI) and the multifamily property will have all 64 units restricted to households at 60% AMI or below, although HOME reporting will apply to 24 units tied specifically to HOME funds. "All of the units are restricted to 60% AMI. However, the HOME formula... was the number that it should have been, which would have been 24," staff said when answering council questions.

Committee members asked for additional detail on tenant rents and the AMI for the area; staff agreed to provide rent‑level estimates and the AMI figures to the chair and to circulate them to councilmembers within the requested timeframe. Staff also noted a $750,000 funding agreement approved previously to help Harris Center carry operations at the sites and said the ReCenter has agreed to sell the property to Harris Center.

No formal council vote occurred in committee; staff said the two items will go separately to full council as individual agenda items for formal approval. The committee did not identify any additional city funds required at this stage and directed staff to provide the requested clarifications and monitoring details when the items move to council.