GEIC approves incentive agreement for new housing

Following a public hearing, the Graham Economic Improvement Corporation approved an up to $200,000 incentive agreement with Cheldan Homes, LP, for new housing in Graham.

GEIC Executive Director Melinda Brown was approved Wednesday, June 25 to negotiate and conclude an incentive agreement with Cheldan Homes, LP, in support of the acquisition of property for new housing opportunities to support workforce retention and expansion. 

“The GEIC finds that additional inventory and availability of quality affordable housing in Graham sufficient to house employees and their families will promote new and expanded business development in and around the city, positively affecting the economy in the area and help eliminate underemployment,” GEIC Chair Jack Graham said.

Cheldan Homes has built homes for almost 30 years in North Texas, including areas such as Cleburne, Glen Rose, Springtown, Weatherford and Boyd.

The company will work as an independent contractor with exclusive control and rights to control the details of the project.

“The proposed draft incentive agreement between the (GEIC) and Cheldan Homes provides a no-interest, prior to maturity, loan in the amount up to $200,000 to Cheldan for the purchase of 10 lots for the development of single-family residences in Pitcock addition," Graham said.

Each home will be required to comply with all applicable laws and ordinances. Once construction on a home starts, the company has 24 months to obtain a Certificate of Occupancy (CO) from the city of Graham.

The company agreed to begin the construction of one family home of no less than 1,200 square feet on each lot for no less than five homes before the fifth anniversary of the effective date or June 25, 2030 or 10 homes before the 10th anniversary of the effective date, or June 25, 2035.

If COs on five homes have not been obtained by the 2030 deadline or COs on 10 homes have not been obtained by the 2035 deadline, the company will be in breach of the agreement and the GEIC has the option to purchase any of the lots where construction of a home has not been started.

The company must agree to keep the properties in good repair and condition as well as pay all taxes and assessments. 

The company agreed to use its “best efforts” to engage contractors and materials on the project located in and around the city of Graham. 

Other breaches of the agreement include providing misrepresentation or materially inaccurate information to the GEIC and the insolvency of the company.

The company also agreed that it does not and will not employ undocumented workers between the effective date of the project until the date they no longer own actual or potential duties under the agreement.

The company will be required to provide a copy of each CO to the GEIC and the organization will credit the amount of $20,000 per CO to the balance on the note. 

The housing developer has not set a price on the homes, but the GEIC requested the company target a price under $300,000.

Before consideration at their Thursday, July 17 city council meeting, Brown is accepting public comments on the project, which will still have a waiting period, if approved.

“In accordance with Texas Government Code, no funds will be distributed until after a 60-day waiting period from the time of the public hearing,” Graham said. “…Graham City Council will proceed with adopting a resolution to authorize the draft agreement.”