NHP Foundation JV Opens Affordable Houston Project

Temenos Community Development Corp., in partnership with nonprofit The NHP Foundation, has opened Rasmus-Temenos, a 95-unit permanent supportive housing community in Houston. Total development costs amounted to $34.8 million.

Rising six stories, the property encompasses studio apartments ranging from 350 to 368 square feet, according to Yardi Matrix data, and an entire floor is dedicated to at-risk youth. The community also includes shared space for supportive service programs and office space for Temenos CDC.

The building replaces Temenos II, an 80-unit community completed in 2016 that was demolished to make way for a highway expansion, Houston Chronicle reported.

Located at 1703 Gray St. in an Opportunity Zone, Rasmus-Temenos is off Interstate 45 and within downtown Houston. It is also close to various health-care facilities.

In 2023 through October, 10,730 units came online in Houston, accounting for 1.5 percent of the inventory, according to a recent Yardi Matrix report. Of the total deliveries, only 5.4 percent were fully affordable properties, while 93 percent represented additions to the Lifestyle stock.

A mix of public and private financing sources

The project has received financial support from various public and private sources:

• $12.5 million from the City of Houston Housing and Community Development
• $11 million in Community Development Block Grant funding for Disaster Recovery from Harris County
• $10.3 million in tax credit equity from WNC
• $10 million in construction financing from Key Bank
• $735,000 self-funded loan from Temenos CDC

Additionally, the development benefited from tax-exempt bonds from the Houston Housing Finance Corp. and 4 percent tax credits allocated by the Texas Department of Housing and Community Affairs.

The Houston Housing Authority also will also provide rental subsidies in the form of some $600,000 in annual services funding allocated by the U.S. Department of Housing and Urban Development, with the support of Coalition for the Homeless.

Support for the project also came in the form of $14 million as City of Houston HOME Reinvestment and $1.5 million as Bond Reinvestment, as well as a $265,621 deferred developer fee.