Posting Language
Title
Authorize the partial release of approximately 0.886 acres of land in Lot 1, Block B, College Park Section Four, according to the plat recorded in Document No. 1999154788 of the Plat Records of Travis County, Texas, from the Lease Agreement, Sublease Agreement, and Second Lien Deed of Trust for the benefit of the City, and from any other documents or instruments necessary to facilitate the construction of a 60-unit, low-income, supportive housing development to be known as The Sasha at or near 1325 Grove Boulevard, Austin, Travis County, Texas 78741. This item has no fiscal impact.
De
Lead Department
Housing Department.
Fiscal Note
This item has no fiscal impact.
Prior Council Action:
November 5, 1998 - Council approved execution of a 99-year Lease Agreement and Sublease Agreement for a 100-bed emergency shelter. Funding was included in the 1998-1999 amended capital budget for the Health and Human Services Department.
November 5, 1998 - Council amended Ordinance No. 980915-B, the 1998-1999 Capital Budget, for the Health and Human Services Department to create a transfer in from the General Fund and appropriate $2,993,000 to a new "Emergency Shelter.”
For More Information:
Mandy DeMayo, Interim Director, Housing Department, 512-974-1091.
Council Committee, Boards and Commission Action:
October 10, 2024 - The Austin Housing Finance Corporation (AHFC) Board of Directors authorized negotiation and execution of a loan agreement and related documents with The Sasha, LP, or an affiliated entity, in an amount not to exceed $8,495,000 for construction of a multifamily rental development to be known as The Sasha, located at or near 1325 Grove Boulevard, Austin, Texas 78741.
August 31, 2023 - The AHFC Board of Directors authorized negotiation and execution of a loan agreement and related documents with Grove Supportive Housing Partnership, LP, or an affiliated entity, in an amount not to exceed $6,795,000 for a multifamily rental development known as The Sasha, to be located at or near 1401 Grove Boulevard, Austin, Texas 78741.
Additional Backup Information:
On December 1, 1998, the City entered into a Lease Agreement to lease approximately 7.264 acres of land at 1401 Grove Boulevard, Austin, Travis County, Texas 78741. Upon execution of the Lease Agreement, the City paid $2,993,000 up front to lease the land. The City then immediately entered into a Sublease Agreement dated December 1, 1998, to sublease the property under the condition that the sublessee would design, construct, operate, and maintain an emergency shelter at the sublessee’s own expense, using the $2,993,000 lease payment the sublessee had just received from the City. Both the Lease and Sublease Agreements were for a term of 99 years. The sublessee granted the City a Second Lien Deed of Trust to secure the City’s $2,993,000 lease payment in the event the Sublease Agreement was terminated.
In 1999, the sublessee platted the 7.264 acres a Lot 1, Block B, College Park Section Four, according to the plat recorded in Document No. 1999154788 of the Plat Records of Travis County, Texas.
Now, the sublessee would like to build a 60-unit, low-income, supportive housing development, to be known as The Sasha at or near 1325 Grove Boulevard, Austin, Texas 78741. Six units will be available for rent to households earning at or below 30 percent of the Area Median Family Income (MFI), 25 units will be available for rent to households earning at or below 40 percent MFI, and 29 units will be available for rent at 50 percent MFI. All units will be Continuum of Care units. The affordability period will be 45 years.
The approximately 0.886 acres of land needed to construct The Sasha lies within Lot 1, Block B, subject to the Lease Agreement, Sublease Agreement, and Second Lien Deed of Trust (City Documents) described above. In order to achieve clean title for the construction of the development, a partial release of the 0.886 acres from the City Documents is required. If approved, this action will authorize the partial release of the 0.886 acres of land from the City Documents and from any other documents or instruments necessary to facilitate the construction of The Sasha.