College Station City Council members unanimously voted at their last meeting to approve a federal loan application to rehabilitate the 50-unit LULAC Oak Hill Apartments.
The 40-year-old complex is used as affordable housing for low-income elderly residents. The project is expected to cost $2.8 million. The Section 108 Loan — which is run through the Community Development Block Grant Program of the Department of Housing and Urban Development — is meant to help pay for the work.
If received, the loan will mean that LULAC, League of United Latin American Citizens, will be responsible for covering the loan repayment to HUD, but if LULAC does not pay, College Station agrees that the costs can come out of the city’s already allotted CDBG funding, as explained in a February council meeting about the matter. In last month’s meeting, councilman Dennis Maloney also pointed out that if for some reason the agreement does not go as planned, the city is entitled to keeping the property.
In last month’s council meeting, Director of Community Services Debbie Eller said the city is also agreeing to pay the interest of the loan with about $50,000 per year from the city’s allotted CDBG funding.
Construction should begin November 2021 and be complete by August 2022, according to the draft loan application.