Ryan Bibbs, assistant director for multifamily housing, briefed the Housing and Affordability Committee on Oct. 21 on Elder Street Apartments, a 34‑unit affordable project at 1101 Elder Street in First Ward that converted the former Jefferson Davis Hospital into housing.

Bibbs said the developer, Avenue CDC, received $500,000 in city tourist funding in 2005 and agreed at that time to a city affordability period that extends 30 years to 2035. The project also accepted state funding from the Texas Department of Housing and Community Affairs (TDHCA) that carries a 40‑year affordability requirement extending to 2045.

The department recommended releasing the remaining city loan obligation and forgiving the city affordability covenant while retaining the state TDHCA affordability restrictions. Bibbs said the approval would relieve the city of administrative and monitoring costs associated with the city covenant through 2035 and would allow Avenue CDC to pursue refinancing while preserving long‑term affordability under the state restriction. Mary Lawler, CEO of Avenue CDC, attended the meeting.

Council members expressed support in committee comments and housing staff said the department conducted due diligence internally before recommending the change. No formal vote or final ordinance was recorded in the committee transcript; staff described the measure as aligning city actions with existing state requirements to avoid duplicative restrictions.