CHAPTER 380 ECONOMIC DEVELOPMENT AGREEMENTS - CITY OF HOUSTON

Category: Local

The City of Houston: Chapter 380 Program of the Texas Local Government Code provides financial assistance in the form of loans and/or performance-based grants to qualified businesses for eligible projects located within the City of Houston limits. Eligible projects must demonstrably stimulate business and commercial activity in Houston. The growth of business activity, employment, or investment in industries like manufacturing, research, development, residential, commercial, industrial and regional service facilities. An eligible project must include:  Construction of substantial new real property improvements of at least $2,500,000 in value, or extensive renovation of existing improvements, on land owned or to be aquired by the applicant; and Documented equity investment of at least $500,000 (loans to the project and guarantees of third party financing do not qualify); and either: Documented creation of at least 25 new full time jobs (40-hours per week), and retention of such jobs for a period of no less than five years; or Creation of affordable housing or transitional housing to be established by deed restrictions recorded in the Official Public Records of Real Property of the county in which the property is located.  Assistance packages shall have a maximum term of ten years. Chapter 380 Program loans shall be recourse lending secured by deed of trust or appropriate collateral or non-recourse lending secured by deed of trust or appropriate collateral. Chapter 380 Program grants shall be structured as performance-based grants which require repayment if required performance levels are not met.  Additionally, the Houston City Council retains sole authority to approve or deny any Economic Development Program Agreement, and is under no obligation to approve any application or agreement. Each program agreement will be negotiated on a case-by-case basis, and the amount awarded may be less than the maximum available term specified.  For more information please contact us.