San Antonio staff recommend nearly $29 million for eight affordable‑housing projects; awards aim to preserve 737 homes

City staff on June 5 delivered a post‑solicitation briefing on recommended awards from the 2022 Affordable Housing Bond and federal HOME/CDBG funding, proposing nearly $29 million for eight projects that staff said will create or preserve 737 homes that remain affordable for at least 40 years.

Veronica Garcia, director of the Neighborhood and Housing Services Department (NHSD), told council the round used bond parameters adopted by the housing bond committee and the Housing Commission. The recommended awards include $25.7 million for rental production and rehabilitation, $3.26 million for homeownership production, and a partial balance allocated from earlier rounds for permanent supportive housing; staff recommended no award from the recent PSH solicitation after finding the single proposal did not meet parameters.

Garcia said the selection panel prioritized projects that included deeper affordability (units at or below 30% of area median income), shovel‑ready proposals, family‑sized units, proximity to VIA transit green or silver lines and meaningful on‑site services. "We focused on projects that prioritize deeper affordability," Garcia said, adding that projects that did not meet the 15% threshold for units at 30% AMI were considered nonresponsive.

Key recommended projects (summarized from staff remarks): - Robert E. Lee Apartments (District 1): $4.7 million in bond funds as a 0% repayable loan to purchase and rehab 72 units, extend the affordability covenant for 40 years and add 11 units at deeper affordability levels; staff said the deal was expected to close in July. - Sacred Heart Villas (District 5): $6.0 million repayable loan to rehab 48 units and add 41 new units (total 89 units), with more than half reserved at 30% AMI; project targets older adults and includes on‑site services. - 6802 Marbach Lofts (District 6): $2.2 million (CDBG/HOME) contingent on receipt of 9% low‑income housing tax credits; 78 units with an on‑site pre‑K and resident services. - Central at Commerce (District 2): $6.0 million housing‑bond loan for a 279‑unit project with 42 units at 30% AMI and services including job training and a food pantry. - Tezel Road Apartments (District 6): $3.6 million recommended; contingent on tax‑credit outcomes; includes on‑site early‑education services. - Judy at VIDA (District 4): $3,158,000 partial award pending tax‑credit results; 90 units, including 19 at 30% AMI; developer committed to Level 4 universal design for accessibility.

For homeownership, staff recommended two awards totaling $3.26 million to produce 51 homes: a $2.5 million award to Habitat for Humanity for Rancho Carlotta Phase VI (anticipated sales price about $170,000) and $671,000 to Opportunity Home San Antonio for a West Side reinvestment phase adding nine homes.

Garcia told council that the recommended awards will come separately to council for contract and funding approval on different timelines depending on tax‑credit and federal funding schedules, and that staff expects to bring some items to council as early as next week. NHSD reported the overall bond program has committed roughly $86 million of bond funds across prior rounds and is leveraging more than $800 million in private investment, with about $14 million remaining for future acquisition and strategic uses.

City Manager Eric Walsh described the 2022 bond as a first major step toward the Strategic Housing Implementation Plan (SHIP) goals and said staff will begin community engagement this month to inform any future considerations about returning to voters for additional housing funding.

Councilmembers asked for regular updates on progress toward SHIP goals and pressed staff on the shortage of deeply affordable rental units at 30% AMI and on strategies to increase permanent supportive housing capacity, including site acquisition and partnerships with the San Antonio Housing Trust.

Ending: Staff will return to council with individual award items for formal approval; councilmembers requested semiannual or regular updates on SHIP progress and on metrics for service impacts at the funded sites.