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September 3, 2019

City of Houston Selects 4 More Developments That Create Affordable Apartments with Federal Funds for Harvey Recovery

Round 1 of the City’s Harvey Multifamily Program includes $163 million of investment that will create 1,604 apartments

Houston will soon have many more affordable, resilient apartments for renters.

The City of Houston’s Housing and Community Development Department today announced four additional awards for its first round of funding for the Harvey Multifamily Program. This program finances the construction and renovation of rental homes lost or damaged during Hurricane Harvey. The program is funded through a grant from the U.S. Department of Housing and Urban Development.

The four awards are for: a residence for low-income seniors at 2100 Memorial Dr.; a mixed-income development at St. Elizabeth’s Place, the former hospital in 5th Ward; a New Hope Housing residence for people who have experienced homelessness; and the rehabilitation of the W. Leo Daniels senior housing complex.

“Nearly a quarter of Houston’s rental housing was affected by floodwaters during Hurricane Harvey,” said Housing and Community Development Director Tom McCasland. “Low-income renters often have an especially hard time recovering from a disaster like Harvey. Our commitment to an equitable recovery means that we’re moving quickly to make investments in affordable apartments that are resilient to future disasters and close to good schools and transit.”

The four developments bring the first round of funding under the Harvey Multifamily Program to a total of $163 million in 15 developments. 1,604 units will be developed with this funding. 1,348 units will be rented at affordable rates to income-qualified renters.

Summary of the four latest awards:

  • 2100 Memorial: The existing senior residence flooded during Harvey. After all residents are relocated, the building will be demolished and rebuilt to be safe from future flooding.
  • St. Elizabeth’s Place: The St. Elizabeth Hospital closed in 2014 and will be redeveloped into a mixed income housing development located in the heart of the Fifth Ward
  • New Hope Housing: The latest development from New Hope will provide 100 units of supportive housing for families in the Second Ward. 
  • W. Leo Daniels Tower: The eight-story development will be fully rehabilitated to provide long term affordability to senior residents. 

The Harvey Multifamily Program opened in February 2019. A total of 56 proposals were reviewed for funding and awards were announced in June, July, and August. The total budget for the Harvey Multifamily Program is $350 million. Two additional rounds of funding are expected to be announced in 2020 and 2021.

Prior to Harvey, a total of 12,800 units that received investment from the City’s housing programs were subject to monitoring to ensure they were rented to income-qualified renters. The additional 1,348 guaranteed-affordable rental units from this first round of Harvey recovery funding represent an 11% increase in affordable rental homes funded by the Housing and Community Development Department.

To find apartments that must be rented at affordable rates, visit the Harris County Housing and Community Resource Center or Social Serve.

Assistant Director for Multifamily Ray Miller added, “These developments are the first construction projects that will benefit from the Build Houston Better Workforce Protection Measures. Protecting workers and making sure they make a living wage is an example of equity in disaster recovery.”

These standards apply to multifamily developments funded with $350 million in the Harvey housing recovery budget. Protections for workers include: an hourly base wage of $15, workers’ compensation insurance, and safety certification training. The program also requires 10% of all project work hours to be done by workers registered in an apprenticeship program and another 10% to be completed by low-income residents through the U.S. Department of Housing and Urban Development Section 3 program.

Harvey Multifamily Program: First Round of Awards


Development

Developer(s)

Other Financing

Total Units

Guaranteed Affordable Units

Council District

HCDD Priority

Award Amount*

2100 Memorial

Houston Housing Authority / Columbia Residential

4% HTCs

196

196

H

Preservation of existing affordable multifamily housing

$25,000,000

St. Elizabeth’s Place

Fifth Ward CRC / Cantwell Anderson

Conventional

179

91

B

Located within Community Reinvestment Area (TIRZ 18)

$23,680,000

New Hope Housing

New Hope Housing

4% HTCs

100

100

H

Located within Second Ward Complete Community

$12,500,000

W. Leo Daniels Towers I

W. Leo Daniels Towers, Inc.

4% HTCs

100

100

H

Preservation of existing affordable multifamily housing

$10,000,000

Avenue on 
34th

Avenue CDC

4% HTCs

70

56

C

Areas experiencing high rental costs that cause displacement of LMI households

$7,400,000

Change 
Happens City
Living

Change Happens / NHP

4% HTCs

74

67

D

Located within Third Ward Complete Community

$12,518,766

Scott Street 
Lofts

Mark-Dana Co/ Urban Partnership CDC

4% HTCs

123

98

I

Transit Oriented Development

$15,730,788

The Gale 
Winds Apartments

Avenue CDC

Conventional

18

10

H

Preservation of existing affordable multifamily housing

$1,226,750

The Briarwest Apartments

Blazer Development

9% HTCs

120

100

G

Area of low poverty concentration and high performing schools

$2,500,000

900 Winston

Magellen Housing TX / Royal American Development

9% HTCs

114

102

H

Area of low poverty concentration

$9,250,000

Bellfort Park 
Apartments

KGC Development

9% HTCs

64

64

K

Preservation of existing affordable multifamily housing

$3,500,000

Gala at 
MacGregor

Gardner Capital

9% HTCs

85

75

D

Located within Community Reinvestment Area (TIRZ 7)

$9,570,000

Edison Lofts

DWR Development Group / Edison Arts Foundation

9% HTCs

126

107

K

Located within Community Reinvestment Area (TIRZ 11)

$8,000,000

McKee City 
Living

Covenant Community Capital / Gulf Coast Housing Partners

9% HTCs

120

96

H

Located within area of low poverty concentration

$11,700,000

South Rice 
Apartments

The Brownstone Group

9% HTCs

115

86

J

Located within Gulfton Complete Community

$10,000,000

Total

1,604

1,348

$162,576,304


Funds for Harvey Recovery Programs are provided by the City of Houston and the Texas General Land Office through the U.S. Department of Housing and Urban Development’s Community Development Block Grant Program.