SUBJECT
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A Resolution of the City of Laredo, Texas, authorizing the City Manager to execute all necessary documents to purchase the Hamilton Apartments from Hamilton Housing Partners Ltd., A Texas limited partnership owned by the Laredo Housing Finance Corporation, its general partner. The property is located in Lot 1 and Lot 10, and the West 35.55 Feet of Lots 2 and 9, Block 73, Western Division, save and except those portions of Lots 1 and 2 described in volume 1527, page 134, real property records of Webb County, Texas, located at 815 Salinas Avenue, Laredo, Texas, and more particularly described and depicted in Exhibit “A.” The purchase price is the existing balance of a HUD note, executed on November 17, 2016, under project no. 115-11250, with an original value of $6,375,500.00 and an approximate current balance of $5,300,000.00 which includes accrued interest and applicable penalties. This is a HUD-Financed Multifamily Project, and the note is subject to a U.S. Department of Housing and Urban Development (HUD) Regulatory Agreement for Multifamily Projects. Funding is available in the Capital Improvement Fund. Providing for an effective date.
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VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies):
Policy 7.6.1 - “Increase the supply of affordable housing options for low- and moderate-income households.” (Viva Laredo Comprehensive Plan, p. 7.26)
Relevance: The purchase and continued operation of the Hamilton Apartments as affordable senior housing directly fulfills this policy by ensuring affordability and stability in the local housing supply.
Goal 7.6 - “Promote a variety of housing types and price levels to meet the needs of all households.” (Viva Laredo Comprehensive Plan, p. 7.26)
Relevance: The action supports this goal by sustaining dedicated senior housing, expanding the diversity of housing types available in Laredo, and addressing a specific demographic need.
Policy 7.6.4 - “Support efforts to preserve existing affordable housing stock.” (Viva Laredo Comprehensive Plan, p. 7.26)
Relevance: By purchasing and continuing operation of Hamilton Apartments, the City ensures that an existing affordable senior housing complex is preserved rather than lost to potential market-rate conversion.
Summary of alignment:
The resolution strongly aligns with the Viva Laredo Comprehensive Plan by advancing housing affordability, diversity, and preservation goals. The City’s acquisition of Hamilton Apartments ensures that affordable senior housing remains available, thereby fulfilling Policy 7.6.1 (increase supply of affordable housing) and Policy 7.6.4 (preserve affordable housing stock). It also supports Goal 7.6 by maintaining a mix of housing types that meet community needs. Additionally, the action reinforces themes of equity and aging in place, providing stability and security for Laredo’s senior population.
PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
On January 26, 2024, the Board of Directors of the Laredo Housing Finance Corporation (“LHFC”) passed and adopted a resolution finding that it is wise, expedient, necessary, and advisable to dissolve the LHFC. The same resolution authorized the President of LHFC to file a certificate of dissolution with the Secretary of State of Texas upon the satisfaction of the following conditions:
1. The City Council of the City of Laredo considers and approves the dissolution of the LHFC.
2. The LHFC transfers all title to property, funds, and obligations to the City of Laredo.
On February 5, 2024, the City Council of the City of Laredo approved the dissolution of the LHFC and accepted the transfer of the Hamilton Apartments to the City of Laredo. The Hamilton Apartments are currently owned by Hamilton Housing Partners Ltd., a Texas limited partnership, of which LHFC is the general partner; and the Hamilton Apartments are encumbered by a U.S. Department of Housing and Urban Development (“HUD”) Note dated November 17, 2016, under Project No. 115-11250, originally valued at $6,375,500.00.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of this Resolution
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: Capital Improvement Fund
Account #: 402-9810-595-9201 Project BP2504
Change Order: Exceeds 25% Y/N: N
FINANCIAL IMPACT:
Yes