EJP serves as development advisor to the Galveston Housing Authority to close the first in the country Faircloth-to-RAD transaction.
FORT WORTH – The Galveston Housing Authority (GHA) in partnership with McCormack Baron Salazar, Inc. (MBS) yesterday broke ground on the Oleander at Broadway development, which will provide 348 new units of housing to Galveston Island. This new development will deliver mixed-income housing opportunities, with 174 public housing units, and 87 purely low-income housing tax credit (LIHTC) units, as well as 87 market rate units.
Dominique Blom, General Deputy Assistant Secretary for the Office of Public and Indian Housing said, “HUD commends GHA, its developer MBS, and the project’s funders-- the Texas General Land Office, RBC Community Investments, and U.S. Bank--for their hard work in bringing this project to the city of Galveston. The project will provide high-quality, safe, affordable housing, which has been urgently needed, and builds on the two other highly successful projects completed by GHA and MBS--Cedars at Carver Park and The Villas on the Strand.”
Mona Purgason, Executive Director of the Galveston Housing Authority said, “We are excited to finally break ground and complete the final component of the redevelopment process that we began nearly 13 years ago after Hurricane Ike. The Oleanders at Broadway will be a thriving mixed-income development that will not only provide critically needed housing for low-income families but will also create a beautiful neighborhood with amenities that will enhance the lives of the families who live there.”
During the construction period, Oleander will be financed with $33.9 million in HUD’s Community Development Block Grant – Disaster (CDBG-DR) funding provided through the Texas General Land Office, almost $3.9 million in Low Income Housing Tax Credits allotted by the State of Texas, $51.8 million in tax exempt bond proceeds, and a $12 million construction loan from U.S. Bank, N.A. The project will be professionally managed by McCormack Baron Management and developed by McCormack Baron Salazar, Inc. (MBS) with GHA acting as sub-developer, and it will be wholly owned by The Oleanders at Broadway, LP. This limited partnership will include the GHA, MBS, and RBC Community Investments.
Oleanders at Broadway is the culmination of an effort by GHA, the state of Texas, and HUD to replace the public housing lost due to Hurricane Ike. It nearly completes the Conciliation Agreement requirements, signed by Texas Appleseed, the Texas Low-Income Housing Information Services, and the State of Texas, which provided for the replacement of the 569 public housing units in Galveston destroyed by Hurricane Ike. As Oleander’s construction begins, GHA is also actively working to complete the final 26 replacement units needed to fulfill the Conciliation Agreement’s terms.
The Oleanders at Broadway is a prime example of in-fill development, fits the specific purpose of the CDBG-DR program, which is administered by HUD, and promotes mixed-income development. Most importantly, it will provide new affordable replacement for housing that has not been available to Galveston for years.
U.S. Department of Housing and Urban Development – Marcia L. Fudge, Secretary Region VI, Fort Worth, Texas
Reg. VI: 21-106
Scott Hudman – firstname.lastname@example.org
Ty Petty – email@example.com