Consider and take appropriate action to approve a second budget revision request from a Supportive Housing Subrecipient, Integral Care Seabrook LLC, reflected in the Subaward for Affordable Housing for the Homeless, Contract No. 4400007681. (Commissioner Howard)

Staff Report & Agenda Item Details

<span style="margin-left:.5in;">Integral Care’s deliverable is to provide 60 housing units to serve individuals with a disabling condition also experiencing homelessness. All 60 units will be designated as permanent supportive housing (PSH) to serve adults who live with a mental illness and/or substance use disorder.</span><br><br><p>Project construction commenced on October 31, 2024. Integral Care Seabrook LLC received the first budget revision, which was approved by the Court on October 29, 2024. The first budget revision reallocated unspent soft costs to construction costs, legal fees, insurance, and green consultant fees.</p><p>To date, Integral Care Seabrook LLC has expended 86% ($9,179,684.11) as of August 2026. Integral Care Seabrook, LLC has submitted the June 2026 invoice for $497,110.04. The July 2026 invoice, which will be approximately $233K will be submitted between Aug. 18-21, 2026 and the final invoice, which will include retainage and any final expenses will be submitted on or no later than September 1, 2026. Integral Care Seabrook LLC is required per Section 9.1 of the subaward to expend all funds by September 30, 2026. Therefore, the transactions of the submission of the final invoices and this budget revision request must occur as quickly as possible.</p><p>Capital A Housing, the developer working on behalf of Integral Care Seabrook LLC, conveyed to Travis County staff that due to the City of Austin absorbing many construction costs that were deemed ineligible per the County’s subaward, some of the soft costs, specifically the remaining developer fees, will be allocated to the final pay app (G702/G703), which will also contain construction retainage. Integral Care Seabrook LLC and Capital A Housing provided the attached explanation to provide more detail.</p><p>Travis County conveyed the following to Capital A Housing who discussed this matter on behalf of Integral Care Seabrook LLC:</p><ol style="list-style-type: decimal;margin-left: 0.5in;"><li>The letter of explanation had to be revised to provide more specificity and detail to convey the reason for this budget revision.</li><li>The July 2026 Invoice must be provided between Aug. 18-21.</li><li>All closeout documents, the certificate of occupancy, and the final invoice submission, which will reveal the final hard costs and retainage, as well as other remaining soft costs (i.e. the developer fee).</li></ol><br>It was conveyed to the Capital A Housing team, if Travis County is not in receipt of the July 2026 invoice and at least a draft of the final invoice for retainage and hard costs (as well as a draft of other closeout documents), staff will request the 2^nd budget revision request be placed as a “no action” agenda item because we do not want to reallocate funds budgeted for construction hard costs to the developer fee before we know what the final construction hard costs charges will be. Capital A Housing indicated they will adhere to the County’s request.