SUBJECT
title
Authorizing the City Manager to enter into contract and award 2024 HOME Investment Partnerships Program (HOME), Community Housing Development Organization (CHDO) set-aside funds in the amount of $150,000.00.
1. $150,000.00 to Habitat for Humanity of Laredo, for the construction of two single- family homes.
Funding is available in the Home Investment Partnership Fund.
body
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies):
Policy 4.1.1 - “Encourage the development of affordable housing in appropriate locations throughout the city.” (Viva Laredo Comprehensive Plan, p. 4.4)
This policy is directly supported as the HOME CHDO set-aside funds are specifically allocated for the construction of affordable single-family homes.
Policy 4.1.2 - “Support partnerships with nonprofit and private developers to increase the supply of affordable housing.” (Viva Laredo Comprehensive Plan, p. 4.4)
The allocation to Habitat for Humanity, a nonprofit housing developer, exemplifies the Plan’s directive to work collaboratively to expand affordable housing options.
Goal 4.1 - “Expand the supply of quality, affordable housing.” (Viva Laredo Comprehensive Plan, p. 4.4)
The construction of two single-family homes directly increases the availability of affordable housing stock in Laredo.
Summary of alignment:
This agenda item strongly aligns with the Viva Laredo Comprehensive Plan’s explicit goals and policies regarding affordable housing development. By allocating $150,000 from the HOME CHDO set-aside to Habitat for Humanity of Laredo for the construction of two single-family homes, the City is fulfilling Policy 4.1.1’s directive to encourage affordable housing development and Policy 4.1.2’s emphasis on fostering partnerships with nonprofit developers. The project directly contributes to Goal 4.1’s call to expand the supply of quality, affordable housing, advancing broader planning themes of equity, neighborhood stability, and community development. The investment also supports long-term housing affordability strategies while leveraging federal funding to meet local housing needs.
PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
In 2024, the City received a HOME Investment Partnership Program Entitlement of $957,640.68 through statutory requirements; the City is obligated to set aside a minimum of 15% of the Program Year's funds for use by a CHDO(s).
A Community Development Housing Organization (CHDO) is a private, non-profit organization that engages in the development of affordable housing and meets the requirements as stipulated in the Home Investment Partnerships Program (HOME) Rule. In order for a CHDO to receive HOME funds, a CHDO must act as a developer, sponsor, and/or owner of housing. Habitat for Humanity of Laredo is a CHDO.
Habitat for Humanity of Laredo and NeighborWorks Laredo submitted proposals, which were reviewed and assessed by a City Staff committee. Based on the evaluation scores, it is recommended that NeighborWorks Laredo receive no funding, as they have previously been allocated funds that remain unspent and to award $150,000.00 to Habitat for Humanity of Laredo to construct two (2) single family housing units.
Habitat for Humanity of Laredo must submit site location to the City for environmental review, decision-making and other actions in compliance with 24CFR, Part 58 prior to project start.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends this motion be passed.
end
Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: Y
Source of Funds: HOME INV. FUND
Account #: 217-6970
Change Order: Exceeds 25% Y/N: N
FINANCIAL IMPACT:
Funding is available in the HOME Investment Partnerships Program (HOME) Fund $150,000 account 217-6970-563-7541, project HO25AD.