SUBJECT
title
Final Reading authorizing the City Manager to amend FY 23-24 revenues and expenditures under the Community Development Department in the amount of $373,000.00 in Section 108- Southern Hotel Fund to be used for the rehabilitation of the Southern Hotel Project. The U. S. Department of Urban Development (HUD) is requesting the City to establish a Deposit Account Control Agreement (DACA) funded purely from HUD Community Development Block Grant funds (CDBG), which will create a shortfall in the funding availability for the project.
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PREVIOUS COUNCIL ACTION
On June 6, 2022, a public hearing was held at City Council Chambers to allow the public and City Council to submit any comments on the Section 108 Loan
Application. No comments were received.
On July 18, 2022, City Council approved the submission of the Section 108 Loan
application and authorizing the Interim City Manager to execute all documents as a result of the application.
On February 21, 2023, a Public Hearing and Introductory Ordinance was introduced by Council.
On March 20, 2023, Ordinance 2023-O-050 authorizing the City Manager to accept and enter into contract with the United States Department of Housing and Urban Development for the Section 108 Loan, establish the Section 108 - Southern Hotel Fund, and to appropriate revenues and expenditures in the amount of $4,115,000.00.
On May 6, 2024, Ordinance 2024-O-289 authorizing the City Manager to amend FY 23-24 revenues and expenditures under the Community Development Department is the amount of $373,000.00.
BACKGROUND
The City of Laredo was advised by the Housing of Urban Development (HUD) of the approval of their Section 108 Loan in the amount of $4,115,000.00 on January 26, 2023. The Southern Hotel located downtown at the 1200 block of Matamoros St., Laredo, TX 78040, for the purpose of providing additional affordable rental housing units available for low-moderate income households. The City of Laredo’s intent is to expand the number of affordable units in Laredo with funds from the Section 108 Loan. This project will consist of 22 units, consisting of 13 low-income and 9 market rate units. The location of this historical building is in a low-to moderate-income area. Additional grants funds have been allocated to this project. Funding for the $ 373,000.00 is from the Capital Improvements Fund.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
That this Ordinance be approved.
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Fiscal Impact
Fiscal Year: 2023-2024
Budgeted Y/N?: N
Source of Funds: Capital Improvement Fund
Account #: 275-8037
Change Order: Exceeds 25% Y/N: N
FINANCIAL IMPACT:
Appropriate Accounts 275-8037-393-0402 (Revenue) and 275-8037-545-9201 ( Expenditure)