Housing department seeks council approval to extend Bethune Center timeline, advance tax-credit hearing and authorize multiple homelessness program agreements

The Houston Housing and Community Development Department asked the joint Quality of Life and Housing and Affordability committees on June 16 to approve a series of actions: a third amendment to a renovation agreement for the Bethune Empowerment Center, initiation of a city "resolution of no objection" process for a 4% housing tax-credit application (Enclave at Katy), acceptance of a state homeless housing services program award, and multiple subrecipient agreements to fund homelessness outreach, rapid rehousing, behavioral-health navigation and stabilization programs.

Assistant Director Ryan Bibbs told the committee the department seeks council approval for a third amendment to the renovation agreement between the City of Houston and Houston Business Development Inc. (HBDI) to extend the construction performance period for the Bethune Empowerment Center project from June 30, 2025, to Oct. 31, 2025. Bibbs said the director may grant an additional extension to Dec. 1, 2025, if needed, but that any extension after Dec. 1 would require council approval. He said the amendment would not require additional city funding.

Bibbs and Director Mike Nichols described the Bethune site (2500 South Victory Drive, formerly Mary McLeod Bethune Academy) as a seven-building rehab owned by Aldine ISD that will contain administrative space, an early childhood learning center, workforce and small-business incubation space, a community garden and other uses. Bibbs said the project’s total budget is roughly $13,000,000 across construction and operations (he reported $12,000,000 allocated for construction and $1.4 million for operations). He said approximately $4.6 million has been spent on construction to date, leaving a construction balance of about $7.6 million; and that approximately $582,000 has been spent on operations with $906,000 of the operating allocation to be returned to the city after the operating funds expired. Bibbs attributed construction delays to permitting issues dating back to September 2024; permits were ultimately approved May 6, 2025, he said.

On multifamily housing, Nichols’ staff requested a resolution of no objection for Enclave at Katy, a proposed family development of 360 units at 5138 and 5202 Katy Hockley seeking 4% Low-Income Housing Tax Credits administered by the Texas Department of Housing and Community Affairs (TDHCA). Bibbs said HCD recommends a motion to hold a public hearing on July 9, 2025, with council steps planned in late June and mid-July: a June 25 request to place the hearing on the council calendar, July 9 to move to hold a hearing, and July 16 for a vote on the resolution if so scheduled. The project will target units at or below 60% area median income with a mix of one- to four-bedroom units; Bibbs said there is no direct city funding associated with the ‘‘no objection’’ resolution itself.

The department also presented a package of subrecipient agreements and amendments intended to expand homelessness services and outreach: a second amendment with Catholic Charities of the Archdiocese of Galveston-Houston to provide up to $389,838.12 in HOPWA funds (serving a minimum of 172 households with tenant-based rental assistance, short-term mortgage/utility assistance, permanent housing placement payments and supportive services through Sept. 30, 2025); acceptance of a TDHCA Homeless Housing Services Program (HHSP) award (combined total $1,619,037: $1,213,997 general allocation and $405,040 youth set-aside) to be used for prevention and housing activities; an amendment with SEARCH Homeless Services adding $247,861.72 in CDBG/ESG funds to continue a rapid rehousing program and serve roughly 48 households (no change to the project end date); a new SEARCH HOME-ARP agreement for $391,776 to fund expanded outreach teams serving an estimated 500 individuals (Aug. 1, 2025–July 31, 2026); two Harris Center HOME-ARP and street-homeless fund agreements totaling roughly $3.6 million combined for crisis outreach, psychiatric care and a 32-bed Hospital-to-Home expansion (one contract approximately $948,841.34 for a 12-month term and a second $2,647,392.77 for a 24-month term; staff noted an agenda-sheet date error and said the 24-month term should extend into 2027); a Family Endeavors HOME-ARP/street-homeless fund agreement for $7,495,014.05 to support housing stability services for roughly 150 households annually (Aug. 1, 2025–July 31, 2027); and a Houston Recovery Center agreement for $941,864.51 from the in-street homeless fund to operate a 24/7, 30-bed sobering/short-term support capacity with targeted stays of about 15 days or less and 24/7 staffing (Aug. 1, 2025–July 31, 2026).

Staff said several of the items (including SEARCH and Houston Recovery Center awards) were the result of a joint, tri-party rolling request for expressions of interest (REI) among the City of Houston, Harris County and the Coalition for the Homeless; the REI opened Jan. 31, 2025, with an initial submission deadline of March 14 and a virtual Q&A Feb. 14. Director Nichols and staff emphasized monitoring practices and said compliance reviews for the cited subrecipients had shown no recent findings on the projects discussed in committee. Several presenters and agency representatives attended the meeting.

Committee members asked for clarifications during the presentation: Council Member Tiffany Thomas asked whether the $906,000 was returning to the general fund (staff confirmed it was the unspent operating allocation), staff explained permitting delays and oversight of draws for the Bethune project, and committee members pressed for clarity on HOME-ARP time clocks, HOME-ARP availability and the composition of the homeless fund (Fund 2012) which staff said includes Metro funds, general fund contributions and other nonfederal sources.

No formal committee vote on any ordinance or contract award was recorded in the transcript capture; staff presented the items for council consideration and indicated follow-up steps including scheduling a public hearing for the tax-credit item and putting ordinances/agendas before council for approval.

Why it matters: The package includes both a local construction contract time extension for a prominent community facility (Bethune Empowerment Center) and a suite of homelessness investments that expand outreach, crisis stabilization, outreach staffing and short-term housing assistance programs — actions with direct budgetary, service-delivery and timeline consequences for neighborhoods and nonprofit partners.

Ending: Department staff said they would return to council with ordinances allocating the accepted funds to specific nonprofit providers where applicable and that the director has discretion for a limited additional extension for the Bethune project through Dec. 1, 2025, with any further extension requiring council approval.