Neighborhood and Housing Services proposes $90.5 million budget; housing bond has $22 million left to allocate

Neighborhood and Housing Services Department (NHSD) Director Veronica Garcia briefed the City of San Antonio City Council Aug. 20 on the department's FY2026 proposed budget, its strategic housing implementation plan, and progress on the $150 million affordable housing bond approved by voters in 2022.

Garcia said the department — formed in 2017 and currently staffed with about 121 employees — administers housing policy, housing stability programs, home rehabilitation and preservation, development oversight, HUD grant management and implementation of the affordable housing bond.

"The SHIP is our community's 10‑year vision for housing affordability," Garcia told council. The presentation reiterated the SHIP goal to build or preserve over 28,000 affordable homes in 10 years, with half of those units targeted to households at or below 30 percent of area median income (AMI). Garcia noted that a three‑person household at 30 percent AMI earns less than about $26,000 a year (approx. $12.55 per hour).

Budget and bond status: Garcia said the proposed departmental total for FY2026 is $90,500,000, including roughly $30,400,000 for affordable housing programs and additional bond‑related expenditures in delivery. The general fund portion would decrease from $24,400,000 to $22,000,000, a $2,400,000 reduction the department described as a rightsizing tied to more efficient program delivery.

Garcia reported the voter‑approved $150,000,000 housing bond has committed about $127,800,000 and has about $22,000,000 remaining. She said the bond has helped support production or preservation of more than 5,000 homes to date, leveraged approximately $822,000,000 in private and state investments and produced nearly 1,500 deeply affordable homes. The average sales price of a bond‑funded home cited in the presentation is $170,000, and the department anticipates more than 4,300 homes completed by 2026 as a result of the bond.

Key programs: the presentation reviewed several high‑priority programs and funding levels:

- Rental assistance and relocation: $5,700,000 proposed to help roughly 1,800 households with short‑term rent, utility or relocation assistance. - Home repair and preservation: major and minor repair programs combined at about $14,700,000 to assist nearly 500 families next year; major rehab can include foundation work, rewiring and full reconstruction when needed. - Down‑payment assistance: forgivable loans up to $40,000 for first‑time homebuyers. - Eviction prevention and legal aid: continued investment, including $100,000 to support a legal aid partner that provides free counseling to more than 300 families annually.

Garcia said the department will continue to pursue density bonuses and code amendments to increase affordable options near transit corridors, coordinate land acquisition with the San Antonio Housing Trust and update the city's five‑year consolidated HUD plan next year.

Council members asked for additional, updated demand data (for example, the number of households at 30 percent AMI seeking housing) and for continued discussion about leveraging bond funds, land banking and gap financing for permanent supportive housing. Garcia and council members also discussed partnerships with SAWS for lateral sewer connections and the role of nonprofit partners in stretching city dollars for home repair work.

Why it matters: the NHSD presentation tied housing preservation, rental assistance and targeted incentives to the broader city goal of preventing homelessness and stabilizing households. Council members asked staff to return with more granular demand and program performance data to inform possible future bond or program investments.