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8 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Exhibit A This Exhibit A identifies items truncated on the HUD AF T Section 2: Long-Term Possible Financial Impact of Proposed Action Line 1: HACEP realizes that after HUD approves this proposed action, HACEP s operating subsidy will decrease by $305,883/year Line 2: HACEP realizes that after HUD approves this proposed action, HACEP s capital fund program funds will decrease by approximately $122,734/year R Section 5: Description of Proposed Action by Development, Method of Sale, Value, and Net Proceeds Line 4: Total number of acres in proposed disposition: acres Line 9: Appraiser Wilkinson, Pendergras & Beard, LP D Section 6: Relocation Line 2: Individuals (including children) will be affected by this removal action 218 persons

9 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 3, Line 1 Section 3: PHA Board Resolution, Environmental Review, and Government Consultation D R AF T Line 1: Copy of the Housing Authority of the City of El Paso Board Resolution No. XXXX dated March 25, 2015

10 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 3, Line 4 Section 3: PHA Board Resolution, Environmental Review, and Government Consultation AF T Line 4: PHA s consultation with all Appropriate Government Officials R On November 25, 2013, the City of El Paso issued a Request for City of El Paso Support for 2014 Low Income Housing Tax Credit (LIHTC) Applications. The Texas Department of Housing and Community Affairs, the State s LIHTC allocation agency, provided that an application for LIHTC may garner additional preference points if it received formal local support and/or a commitment of funds. In response to the City s request, and in order to gain additional application points, the HACEP submitted its Haymon Krupp redevelopment application to the City for formal support and an allocation of HOME funding. D In determining whether to support a project, City staff visited each prospective site and considered items such as: Does the proposed development support a Redevelopment/Revitalization Plan adopted by the City of El Paso? Is the proposed development consistent/compatible with the Plan for El Paso, Future Land Use Plan, and properly zoned? Is the proposed development located in close proximity of schools, grocery, medical facilities, and public transportation? Is the development located in an undesirable area? What is the level of commitment to low to very low tenants? Upon review of HACEP s application and consideration of the above items, City staff recommended that the City of El Paso support HACEP s Haymon Krupp LIHTC application and provide $100,000 in HOME funds. The City Council passed a Resolution of Local Support and Commitment from the City of El Paso in Favor Of Haymon Krupp Development on January 7, In addition, the City Council reconfirmed its support and increased its funding commitment to

11 $500,000 to assist with the project through a second Resolution of Local Support and Commitment passed on February 25, DRAFT

12 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 3, Line 5 Section 3: PHA Board Resolution, Environmental Review, and Government Consultation D R AF T Line 5: Letters of Support from the City of El Paso

13 RESOLUTION OF LOCAL SUPPORT AND COMMITMENT FROM THE CITY OF EL PASO IN FAVOR OF HAYMON KRUPP PEVELOPMENT Whereas, the Housing Authority of the City ofel Paso (HACEP) has proposed a development for affordable rental housing at HedgeRow named Haymon Krupp Development in the City ofel Paso, County ofel Paso, Texas; and Whereas, HACEP has advised that it intends to submit an application to the Texas Department of Housing and Community Affairs (fdhca) for 2014 Statewide At-Risk Housing Tax Credits for the Haymon Krupp Development; therefore I It is hereby RESOLVED, that the City of El Paso, acting through its governing body, hereby confirms that it supports the proposed Haymon Krupp Development located at Hedgerow, and that this formal action has been tak~n to put on record the opinion expressed by the City of El Paso on February 25,2014,and It is hereby RESOLVED, that the City of El Paso, acting through its governing body, hereby confirms that it has committed to HACEP a maximum of $500,000 in HO:MFJCDBG program funding, in the form of a loan with a minimum 15-year term, minimum 30-year amortization, and a maximum interest rate of 3% per annum; these funds shall be used in developing the Haymon Krupp development located at Hedgerow, El Paso, TX, and FURTHER RESOLVED that for and on behalf of the Governing Body, Richarda Duffy Momsen, City Clerk are hereby authorized, empowered, and directed to certify these resolutions to the Texas Department of Housing and Community Affairs. ADOPTED this d..~day offebruary, 2014 DRAFT THE CITY OF EL PASO ~~ oscar t;;r, Mayor

14 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 5, Line 7 Line 7: Method of Sale AF T Section 5: Description of Proposed Action by Development, Method of Sale, Value, and Net Proceeds D R The Housing Authority is disposing the property at Fair Market Value.

15 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 5, Line 8 Line 8: Appraisal AF T Section 5: Description of Proposed Action by Development, Method of Sale, Value, and Net Proceeds D R Wilkonson, Pendergras, & Beard, LP completed an appraisal of Haymon Krupp on February 6, As part of the project, the Housing Authority plans to transfer the property to a new owner, Haymon Krupp, LP. The Housing Authority of the City of El Paso (HACEP) will be the General Partner in the new owner entity. The HACEP, through the new owner entity, will demolish the existing housing and develop 96 units of new housing on this site. The appraised value of the vacant land was $1,235,

16 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 5, Line 11 Section 5: Description of Proposed Action by Development, Method of Sale, Value, and Net Proceeds AF T Line 11: The Use of Net Proceeds R The Housing Authority of the City of El Paso (HACEP) is proposing to sell the Haymon Krupp Apartments to Haymon Krupp, LP; a new owner entity. Upon transfer, the Apartments will be demolished. The land will be transferred to the partnership for $1.235 million; the appraised value of the land as listed in the appraisal completed by Wilkinson, Pendergras, & Beard on February 6, The HACEP, through Paisano Haymon Krupp GP, LLC, will be the General Partner and a partial owner in the new ownership entity. Hunt Development, its development partner, will develop the project. D The HACEP will provide a Seller s Note for $1,235,000 for the sale of the land which will enable the receipt of Low Income Housing Tax Credits (LIHTC) to Haymon Krupp, LP and will provide the financing needed for the acquisition of the property. The seller s note will be repaid according to outlined terms and conditions and will be recorded against the property in a subordinate position. The HACEP will reinvest the net proceeds available, after reducing for the Seller s Note, into the redevelopment of Haymon Krupp Apartments and its remaining stock of public housing properties. In accordance with Section 18(a)(5), the HACEP will use the funds for the provision of low-income housing or to benefit the residents of the PHA. Specifically, funds will be used for the modernization of public housing in accordance with the eligibility requirements for capital funds authorized by the US Department of Housing and Urban Development. No net proceeds are anticipated from the transfer of Haymon Krupp after reduction for the Seller s Note.

17 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 5, Line 12 Section 5: Description of Proposed Action by Development, Method of Sale, Value, and Net Proceeds AF T Line 12: Attach a narrative explaining how the PHA will fund the demolition of the property R Upon transfer of the property to the new owner, Haymon Krupp, LP, the existing 96-units of public housing at Haymon Krupp will be demolished to allow for the new construction of 96-units of housing 25% of which will be public housing and 75% of which will be low income housing tax credit housing. The estimated demolition cost is $XXXXXX. The cost of demolition will be paid for through a mix of Housing Authority funds and Low Income Housing Tax Credit equity provided through the Hunt Companies. D The Texas Department of Housing and Community Affairs allocated $800,000 in Low Income Housing Tax Credits to the project. Hunt Companies, the 99.99% Limited Partner for the project, will purchase these tax credits. In return for the tax credits, they will provide equity needed for the demolition and redevelopment of Haymon Krupp Apartments.

18 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 6, Line 1(a) Section 6: Relocation AF T Line 1(a): Attach a narrative explaining the circumstances that resulted in the units becoming vacant and the relocation of the residents of the affected Development As of February 9, 2015, there were 24 vacant units at Haymon Krupp. Of these units, one unit was destroyed by fire. The remaining vacant units were vacated due to move outs. The vacant units are either available for leasing or are in the process of turnover. D R None of the residents at Haymon Krupp have been relocated yet as a result of the renovation of the property. Once HUD has approved the Mixed-Finance and Disposition Applications, residents will be temporarily relocated so the property can be demolished and the new units constructed. Residents were briefed on the relocation process and relocation support services that will be available to them as part of the resident consultation meetings. The Relocation Plan is available for residents to review. A 90-Day Notice will be issued upon HUD approval of this demolition and disposition application, unless granted a waiver to begin relocation earlier. Given the use of federal HOME funds, relocation will be carried out in accordance with the noticing and other requirements of the Uniform Relocation Act (URA). HACEP and its staff are familiar with the URA.

19 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 6, Line 3 Section 6: Relocation AF T Line 3: Attach a narrative explaining how the PHA will provide counseling and advisory services R All relocation activities, prior to demolition and post new construction for households returning to Haymon Krupp, will be conducted in compliance with Public Housing Demolition/Disposition Residential Relocation Requirements under Section 18 of the United States Housing Act of 1937 as amended by the Quality Housing Work Responsibility Act of 1998 (QHWRA) and/or the Uniform Relocation Act (URA) and Real Property Acquisition Policies Act of 1970, as amended, (42 USC Section 4601 et seq.) and its implementing regulations at 49 CFR 24, as applicable. D The Housing Authority of the City of El Paso s (HACEP) Relocation and Logistics Team will manage the relocation process and services for the residents of Haymon Krupp during both the initial relocation and the return process. Residents relocated from Haymon Krupp will have the choice of permanently relocating from the property or temporarily relocating with the first right to return upon completion of the project. Depending upon the resident s choice, residents may have to move multiple times. HACEP will cover the relocation expenses associated with each move. The HACEP is fully aware of the complexities involved in relocating families and understands the stress imposed on families caused by moving. To lessen the burden and inconvenience that may be caused by the move, HACEP will assign each household a dedicated Relocation Technician who will offer them guidance throughout the process and offer advisory services. The Relocation Technician will contact and interview each household affected and discuss their needs, preferences, and concerns. Staff will also answer any questions. The advisory and counseling services will also include, but not be limited to:

20 Advising residents of their rights based on the URA Explaining the appeal process Providing referrals and resources information to different social service agencies to assist with basic needs such as medical, health, financial, nutrition, etc. Explaining the available relocation assistance Advising residents of the moving options move within the HACEP portfolio or leasing a private unit. In addition, as part of the relocation services, residents will be provided: Availability of Comparable Replacement Housing Under URA, no displaced resident will be required to move unless at least one comparable replacement dwelling (49 CRF 24.2(a)(6)) is made available at least 90 days before the required move (49 CFR (c)). Moving Services A moving contractor hired by HACEP will physically move resident s furniture and possessions if the resident desires. Residents may also choose to pack and move their own belongings and will be reimbursed based on pre-approved, allowable expenses. Residents will be provided boxes for packing belongings for transport. A dedicated Relocation Technician will provide guidance on this process. Utilities and Services Transfer Assistance will be provided to the residents to transfer utilities and other services (i.e. telephone, cable, etc.) equal to current services to the new unit. The HACEP will also assist displaced residents with expenses related to transferring utilities to their replacement unit. DRAFT Residents relocating outside HACEP properties qualify as a displaced person (defined at 49 CFR 24.2(a)(9)) and are entitled to a payment for moving and related expenses, as the HACEP determines to be reasonable and necessary and may choose a payment for actual reasonable moving and related expenses, or a fixed payment for moving expenses as determined by the URA Fixed Residential Moving Cost Schedule. A primary challenge will be obtaining the cooperation of the residents. There are a number of reasons why residents may be reluctant to participate fully in the relocation process. These reasons include: fear, misinformation, general reticence, etc. In order to combat this problem, the Relocation Team will provide ongoing resident group meetings, individual meetings, and updated information and notices to impacted households. Residents will receive an initial 90-day notice before relocation and other required notices under URA. The HACEP believes that by executing these steps, it will enable the timely distribution of accurate information to the residents to alleviate fears and dispel

21 rumors about the relocation process. Residents who understand the process and its options will be more likely to participate and make informed decisions regarding their move. The HACEP may revise its Relocation Plan without HUD approval, provided such revisions are not inconsistent with federal regulations. A copy of the current Relocation Plan and a relocation budget breakdown is attached for reference. DRAFT

22 Housing Authority of the City of El Paso Estimated Relocation Costs Haymon Krupp (based on occupied units as of 2/25/15) Number of Bdrm Size Units Cost Per Unit Subtotal 1 0 $ $ $ 1, $ 47, $ 2, $ 76, $ 3, $ 18, $ 143, Item Gas Deposit Electric Deposit** Water Deposit Telephone Transfer Fee Cable Transfer Fee Dislocation Allowance Estimated Cost Est. Fixed Allowance Per Unit $ $ $ $ $ $ $ $ 39, Estimated Relocation Expenses for Haymon Krupp per one way move d Total Relocation Expenses for Haymon Krupp for Two-Phase Move $ $ 182, , ***Estimated Cost of Advisory Services $ 23, Total Estimated Relocation Costs $ 388, Cable - AT&T - $99 tech visit fee flat fee Dish - no fee if transfer Highest - $99 Direct TV - $19.95 transfer fee Average $35 Time Warner - $20 per service (up to $60) or $20 for bundle. Gas - $50 deposit and $20 connection = $70 **Electric - Deposit required only if outstanding balance due. Amount reflects average deposit on outstanding debt. $11 connect fee Water - $75 deposit and $20 set up fee = $95 *** Cost of Advisory Services was projected at 20 hours per household at an average hourly pay rate of $ per technician DRAFT March 2009

23 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 6, Line 8 Section 6: Relocation AF T Line 8: Attach a narrative explaining how the PHA will fund Relocation Expenses The total estimated cost for temporarily relocating residents at Haymon Krupp is $388, This includes an estimated $23,760 for counseling and advisory services and an estimated $365,232 for moving expenses. Costs associated with the relocation of residents will be funded through equity raised from the sale of Low Income Housing Tax Credits (LIHTC) and/or federal HOME funds provided by the City of El Paso. D R In August 2014, the Housing Authority of the City of El Paso (HACEP), received a reservation of $800,000 in LIHTC from the Texas Department of Housing and Community Affairs. The HACEP anticipates the sale of the LIHTC will result in raising over $7 million in equity for this project. These funds will be used to cover the majority of soft and hard costs associated with the project. Relocation expenses are an eligible LIHTC expense and are included in the project s budget and tax-credit basis.

24 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 7, Line 1 Section 7: Resident Consultation AF T Line 1: Attach a narrative explaining the PHA s consultation with the residents of the affected Development The Housing Authority of the City of El Paso (HACEP) held two meetings on-site at Haymon Krupp on February 12, 2015, to discuss the project and the HUD demolition and disposition application. A morning and evening meeting were held. Meetings were conducted in English and Spanish. Thirty residents attended between the two meetings. These meetings were a follow-up to prior meetings held with residents over the past year. D R At the meeting HACEP staff discussed changes to the project scope, the impact to the residents, the HUD process model, and answered questions. The HACEP had initially envisioned the Krupp demolition and redevelopment under the RAD program. The project will now proceed as a HUD mixed-financed development. As a result, 25% of the newly constructed units will be public housing. The remaining units will be Section 8/Low Income Housing Tax Credit housing. A total of 96 units will be rebuilt on the site with the same unit mix as the current property. Residents will be provided the first right to return to the property when it is finished. Residents will be given the option to move to a Section 8 unit. Some residents may be identified as having achieved self sufficiency based upon their household income. HACEP staff will assist each family in determining the best option for them. Residents asked several questions. A majority of the questions were related to the relocation process. Residents were interested in confirming whether they would still be relocated and the type of unit they would be relocated to. Staff provided explanations on the relocation process. They also noted that resident specialists would assist families with the relocation process and that families will be moved to comparable sized units. One resident asked whether they could

25 stay in public housing and also get Section 8. Staff explained that these are two separate programs and that if a household chooses to move to Section 8, it loses its public housing agreement. A copy of the meeting minutes and questions are attached for reference. DRAFT

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38 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 7, Line 2 Section 7: Resident Consultation AF T Line 2: Attach a narrative explaining the PHA s consultation with the Resident Council of the affected Development D R The Housing Authority of the City of El Paso (HACEP) held two meetings on-site at Haymon Krupp on February 12, 2015, to discuss the project and the HUD demolition and disposition application. A morning and evening meeting were held. Meetings were conducted in English and Spanish. Thirty residents attended between the two meetings. There is no site-specific Resident Council at Haymon Krupp Apartments. An overview of the meetings is provided in Section 7, Line 1, of this application.

39 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 7, Line 3 Section 7: Resident Consultation AF T Line 3: Attach a narrative explaining the PHA s consultation with the Jurisdiction Wide Resident Council D R The Housing Authority of the City of El Paso (HACEP) provided an update on the Haymon Krupp demolition and redevelopment project to the Jurisdiction Wide Resident Council on February 5, Over twenty Resident Council Presidents were in attendance. HACEP staff explained that the project was no longer being pursued using RAD and was proceeding as a HUD mixed-finance development. Staff highlighted the changes under a mixed-finance strategy including the change to the previously identified project funding and the fact that 25% of the redeveloped units would now remain public housing and 75% of the units would be Section 8/Low Income Housing Tax Credit (LIHTC) units. A total of 96 units will be redeveloped on the site. Staff explained the demolition and disposition application process and the timing for the project. The Council members asked questions regarding the financing changes and the Section 8 and LIHTC programs. Staff explained that the LIHTC was used to construct the property and restrict the rents and income targeting on certain units and that Section 8 could be overlaid to help subsidize the tenant s rent. Council members also asked if residents have the right to return to the property and staff indicated that they have the ability to return. A copy of the meeting minutes are attached for reference.

40 JWRC MONTHLY MEETING You are cordially invited to the JWRC Monthly Meeting Thursday, February 5, :30 p.m E. Paisano Dr. Conference Room 706 Presentation on RAD Project for Tays and Krupp Está cordialmente invitado a la Junta Mensual del Concilio de Residentes con Jurisdicción Amplia Jueves 5 de Febrero, :30 p.m E. Paisano Dr. Salón de Conferencias 706 DRAFT Presentación sobre Programa de RAD para Krupp y Tays Thank you /Gracias

41 Council of Presidents Monthly Meeting Thursday February 5, 2015 at 5:30 P. M. HACEP-5300 E. Paisano Dr. 1. Welcome/Bienvenidos Lilia Vasquez, President JWRC 2. Guest Speakers/Invitados Especiales: Mr. Roman Velasquez, Director of Public Housing: RAD Presentation on Plan for Krupp and Tays communities/ Presentación de RAD sobre el Plan para las Comunidades de Krupp y Tays 3. New Business/ Negocios Nuevos: Action Items: a) Authorization of expenses due to Installation of Internet Services for the JWRC/ Autorización de gastos por Instalación de Internet para el JWRC b) Recognition Plaques for Shane Griffith and Operation Noel benefactors/ Placas de reconocimiento para Shane Griffith y para Benefactores del Programa de Operación Noel 4. Old Business/ Negocios Viejos Reminder: procedures to receive flyers and refreshments/ Recordatorio para procedimientos de cómo recibir volantes y refrigerios 5. Closure/Clausura DRAFT Thank you for your participation/gracias por su participación.

42 Minutes Call to Order: at 6:55 pm. The Monthly Meeting for the Jurisdiction Wide Resident Council was held in Conference Room 706, located at 5300 E. Paisano Dr., El Paso, TX 79905, on February 5, The meeting convened at 6:55 pm.- Mrs. Lilia Vasquez, President of the Jurisdiction Wide Resident Council was presiding the meeting, and Susana Herrera, Secretary of the JWRC, recorded the meeting. Members in attendance: two additional JWRC officers, Ms. Virginia Trejo, Vice- President, and Ms. Beatriz Lozano, Treasurer. There were 17 Presidents that came from various communities within the Housing Authority of El Paso. No reports were read or approved on this date. Mr. Roman Velasquez, Director of Public Housing presented the RAD Reconstruction Plan for Tays and Krupp. He explained that 81 units will be demolished in the South Side of Tays, and 198 units will be built in their place. 50 of those units will be multi- family, with Section 8 funding, and 148 will be Tax Credit. The Tays project will be done in 3 phases, with demolition of the 81 units being the first phase, and the remodeling of the units on the other side of the canal being the 2 nd, and 3 rd phases. Krupp s 96 units will be totally demolished, and will be reconstructed as 24 apartments funded through Section 8, and 72 additional units will be funded through a different Section 8 Program Mr. Velasquez provided an overview of the project and highlighted changes, such as the change from Program 9 (Public Housing), to having units built with different sources of funding in the same complex. The list of applicants is being decentralized, and from now on, residents may choose which complex they wish to live in. He explained the rules. Mr. Velasquez explained the application process for this project, how this is done in March, then they will receive an answer 3 months later, and if they receive a favorable response, they will start construction in August and finish it in Summer of Part of the process is giving out notices, doing the presentation, and submitting all paperwork Housing will pay for relocation of families He stated that all residents have the right to return to their community, but not necessarily to their previous apartment. Residents who come back to the same number of bedrooms may go back to their apartment, but those that come back to a different number of bedrooms due to changes in family composition, will return to different units. There was a Q & A session, as follows: DRAFT 1- Where exactly are these communities located? R- Mr. Velasquez showed a map, showing the residents the location of Tays 2- Are the units that will be built be smaller? R- Have you seen East Side Crossing development? That is how they are going to look. 3- There is going to be Section 8 and Tax Credit in the same apartments? I don t understand

43 R- Yes, the funding for financing the units is what is different: Tax Credit are for financing and construction; Section 8 multifamily funding goes to subsidize rent; section 202 is specifically for senior apartments funding. 4- I am at Woodrow- Bean, when I get moved, where will I go? R- We are only going to renovate Woodrow Bean. 5- Do we have the option to go back to the same community? R- Yes, you can go back to the same apartments, maybe not to the same unit, depending on the number of units you qualify for. 6- Will the programs be different? R- We are giving you the information about the funding (for the different programs), but it does not impact you. 7- If the person returns to the same number of bedrooms, can they return to their same apartment? DRAFT R- Yes. New business: Motion by Mrs. Vasquez to approve expenses for three plaques for special donors they wish to recognize. - Motion carried, with 16 presidents approving and one abstaining. Motion by Mrs. Vasquez to approve expenses related to installation of internet services in her apartment, from funds coming from all of the communities. - Motion carried, 17 Presidents approved. Announcements on requests for fliers. Meeting adjourned at 7:55 pm. Submitted by Lucia R. Wiesinger, Resident Relations Specialist.

44 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 7, Line 5 Section 7: Resident Consultation AF T Line 5: Attach written comments, along with any evaluation the PHA has made of those comments D R To date, the HACEP has not received any written comments from residents at Haymon Krupp, the Resident Council, or the Jurisdiction Wide Resident Council.

45 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 8, Line 2 Section 8: Offer of Sale AF T Line 2: Attach documentation supporting the referenced exception (24 CFR 970.9(b)(3)(ii)) The Housing Authority of the City of El Paso (HACEP) will be developing Haymon Krupp as a mixed-finance housing property under 24 CFR 941 Subpart F. The mixed-finance sources include equity from the sale of Low Income Housing Tax Credits (LIHTC) and federal HOME funds awarded by the City of El Paso. Attached are award letters evidencing receipt of this financing. D R As part of the project the existing 96 units will be demolished and a new 96-unit development will be constructed. Upon completion, 25% of the units (24 units) will be public housing and 75% of the units (72 units) will be LIHTC units. The HACEP will overlay project-based Section 8 on the LIHTC units to keep rents affordable to very-low income, public housing tenants. The HACEP will seek Tenant Protection Vouchers for households impacted by the project.

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52 RESOLUTION OF LOCAL SUPPORT AND COMMITMENT FROM THE CITY OF EL PASO IN FAVOR OF HAYMON KRUPP PEVELOPMENT Whereas, the Housing Authority of the City ofel Paso (HACEP) has proposed a development for affordable rental housing at HedgeRow named Haymon Krupp Development in the City ofel Paso, County ofel Paso, Texas; and Whereas, HACEP has advised that it intends to submit an application to the Texas Department of Housing and Community Affairs (fdhca) for 2014 Statewide At-Risk Housing Tax Credits for the Haymon Krupp Development; therefore I It is hereby RESOLVED, that the City of El Paso, acting through its governing body, hereby confirms that it supports the proposed Haymon Krupp Development located at Hedgerow, and that this formal action has been tak~n to put on record the opinion expressed by the City of El Paso on February 25,2014,and It is hereby RESOLVED, that the City of El Paso, acting through its governing body, hereby confirms that it has committed to HACEP a maximum of $500,000 in HO:MFJCDBG program funding, in the form of a loan with a minimum 15-year term, minimum 30-year amortization, and a maximum interest rate of 3% per annum; these funds shall be used in developing the Haymon Krupp development located at Hedgerow, El Paso, TX, and FURTHER RESOLVED that for and on behalf of the Governing Body, Richarda Duffy Momsen, City Clerk are hereby authorized, empowered, and directed to certify these resolutions to the Texas Department of Housing and Community Affairs. ADOPTED this d..~day offebruary, 2014 DRAFT THE CITY OF EL PASO ~~ oscar t;;r, Mayor

53 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 9 Section 9: Certification D R AF T Section 18 Certification: See Attached

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56 Application for Demolition/Disposition Haymon Krupp Apartments (TX ) Section 18 Exhibit A AF T Section 18 Certification: Attach a narrative or documentation to justify obsolescence and attach a completed Total Development Cost (TDC) Calculation (HUD B) R Demolition and Disposition reason cited Obsolescence 24 CFR (a)(1): The Development (or affected portion of the Development) is obsolete as to physical condition, location or other factors (as defined by 24 CFR ), making it unsuitable for housing purposes and no reasonable program of modification or rehabilitation of the Development is cost-effective to return the Development (or portion of the Development proposed for demolition) to its useful life. D The Housing Authority of the City of El Paso (HACEP) has determined that the demolition and redevelopment of Haymon Krupp Memorial Complex is consistent with its goals and its PHA Plan. HACEP has undertaken an initiative to use federal and private funds to improve its housing stock. In partnership with Hunt Development Corporation, a respected developer, the HACEP submitted an application for 9% Statewide At-Risk Pool Low Income Housing Tax Credits (LIHTC) to the Texas Department of Housing and Community Affairs in February The project was awarded $800,000 in LIHTC in July Additionally, the City of El Paso awarded $500,000 in HOME funds to the project. The HOME funds will be used to offset costs associated with the non-public housing units housing as part of this disposition. Upon Demolition and Disposition approval by HUD, the HACEP will also apply to HUD for 96 tenant protection vouchers as part of this project. Haymon Krupp was built in 1974 and is in need of modernization. The physical needs assessment completed by XXXXXXX in 2015 identified over $XX million in capital needs over the next 20 years. The cost to renovate the property is not cost-effective as it exceeds XX.XX of the Total Development Cost using HUD s TDC estimates for El Paso.

57 Pursuing a mixed-finance strategy for this property will enable the HACEP to access the funds needed to complete the demolition and redevelopment of this older property. The new development will also contain 96-units and the same mix of 2-, 3-, and 4-bedroom units. Upon completion of the redevelopment, the property will continue to serve low-income households through a mix of public housing (25% of units) and Low Income Housing Tax Credit (LIHTC) units (75% of units). Project-based Section 8 will be overlaid on the LIHTC units so that the property can continue to serve any former Haymon Krupp tenants that want to return and otherwise could not afford the LIHTC rents. The redevelopment will benefit the agency, the residents, and the community by upgrading this aged property into an energy efficient, long-term asset with improved curb appeal, new heating and cooling systems, and modern units with new kitchens and bathrooms. DRAFT

58 Total Development Cost U.S. Department of Housing OMB Approval No (TDC) Addendum and Urban Development (exp. 10/31/2010) Office of Public and Indian Housing Public reporting burden for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information is required to as a supplement to the HUD for all inventory removal actions that involve a demolition action or a disposition action justified by obsolescence based on requirements of Section 18 of the United States housing Act of 1937 as amended ( Act ) and 24 CFR Part 970. HUD will use this information to determine whether, and under what circumstances, to permit PHAs to remove from their inventories all or a portion of a public housing development, as well as to track removals for other record keeping requirements. Responses to this collection of information are statutory and regulatory to obtain a benefit. Please refer to the instructions for each section for additional guidance on how to complete this application. HUD approval of the proposed removal from inventory action in this application does not constitute HUD approval for funding of the proposed action. All capitalized terms not defined in this form have the meanings as defined in the Act and the HUD Regulations. The information requested does not lend itself to confidentiality. 1. Inventory Removal Application Number DDA Development Name & Number _TX /Haymon Krupp Memorial Complex 2. Total Development cost calculation Based on HUD Notice For Locality El Paso If Justification is based upon obsolescence of the units/buildings, complete the applicable calculation below for the unit proposed for demolition for each project Size - Type Number of units Times TDC Per Unit = TDC 0 - Bdr Detached and Semi detached 0 X Bdr Row Dwelling X Bdr Walk-Up X Bdr elevator X Bdr Detached and Semi detached X Bdr Row Dwelling X Bdr Walk-Up X Bdr elevator X Bdr Detached and Semi detached X Bdr Row Dwelling 46 X 158, ,298, Bdr Walk-Up X Bdr elevator X Bdr Detached and Semi detached X Bdr Row Dwelling 42 X 191, ,041, Bdr Walk-Up X Bdr Elevator X Bdr Detached and Semi detached X Bdr Row Dwelling 8 X 226, ,809, Bdr Walk-Up X Bdr Elevator X Bdr Detached and Semi detached X Bdr Row Dwelling X Bdr Walk-Up X Bdr Elevator X Bdr Detached and Semi detached X Bdr Row Dwelling X Bdr Walk-Up X Bdr Elevator X 0 TOTAL 17,149, Estimated Cost of Rehabilitation Provide an attachment showing cost breakdown and reference it as Addendum to B Rehabilitation Cost Breakdown 4. Rehabilitation Cost % (estimated cost of Rehabilitation/Total TDC) x 100 = 17,400, % Provide attachments as needed. All attachments must reference the form HUD B (10/2007) Section and line number to which they apply. Previous versions obsolete. Page 1 of 2

59 HUD B: Total Development Cost (TDC) Form Instructions: PHAs proposing to demolish all or a portion of a public housing development (or proposing to dispose of public housing based on obsolescence) must complete this HUD B in order to demonstrate to HUD that no reasonable program of modification/rehabilitation (rehabilitation) is cost-effective to return a development to its useful life. Item 1: Insert the number of the HUD Notice from which the PHA extracted the Total Development Cost (TDC) data. The year of the HUD Notice should coincide with the year the rehabilitation estimate was generated, which should not be more than two years prior to the application submission date. Insert the name of the nearest locality to the Development Item 2: TDC Calculation: Complete the TDC calculation for the affected Development. Item 3: Rehabilitation Calculation: Attach the estimated cost of rehabilitation for the Development that is necessary to bring the Development up to current new construction standards. Provide details at the work item level (e.g. roofs, windows, heat, etc.). Show contingency, consultants and administrative cost as separate cost items. To show obsolescence of non-dwelling structures, obtain comparable new construction costs from the nationally recognized estimating sources referenced in the applicable HUD Notice for TDC, and do a similar analysis. In your attachment, identify the source and year of the benchmark amount. HUD generally will not consider rehabilitation to be cost-effective if the costs of such rehabilitation exceed 62.5 percent of TDC for developments with elevators or percent of TDC for developments, and all other types of structure, without elevators. If the rehabilitation cost for the affected Development does not result in these percentages, the PHA should attach to this form an explanation for why HUD should still approve the proposed demolition/disposition action. Provide attachments as needed. All attachments must reference the form HUD B (10/2007) Section and line number to which they apply. Previous versions obsolete. Page 2 of 2

60 HACEP - KRUPP OPINION OF PROBABLE CONSTRUCTION COST Unit Type No. Stories No. Buildings SF Each Building Total Area per Building Type Remodel Cost Remodel Cost/SF A 2 2 6, , $ 1,826, $ B 2 2 7, , $ 1,594, $ C 2 3 7, , $ 3,862, $ D 2 6 8, , $9,346, $ M&M Bldg , , $ 769, $ Buiding Type No. Bedrooms No. Apts per Building SF Each Number of Buildings Subtotal Area Remodel Cost Remodel Cost/SF Comparison No. Bedrooms Remodel Price TDC New Construction Price 57 % of TDC A , $ 507, $ $126, $158, $ 90, , , $ 594, $ $148, $191, $ 109, , , $ 725, $ $181, $226, $ 128, Total Buildings A 13, $ 1,826, B 3 4 1, , $ 990, $ $123, $191, $ 109, , , $ 604, $ $151, $226, $ 128, Total Buildings B 14, $ 1,594, C , $ 2,777, $ $154, $158, $ 90, , , $ 1,085, $ $180, $191, $ 109, Total Buildings C 23, $ 3,862, D , $ 4,302, $ $179, $158, $ 90, , , $ 5,043, $ $210, $191, $ 109, Total Buildings D 48, $ 9,346, M&M - 1 4, , $ 769, $ Total Development Area 104, Total Rehab Cost $ 17,400, /16/15