Houston Department of Neighborhoods presents smaller FY26 budget after code enforcement moves to Public Works

Director Sims presented the Houston Department of Neighborhoods’ proposed fiscal year 2026 budget and organizational changes at a City Council workshop, saying the department’s budget will be substantially smaller after moving its code enforcement division to Houston Public Works (HPW) and absorbing several mayor’s office programs.

Sims said 83 full-time positions moved to Houston Public Works as part of the consolidation, noting that “44 were general fund, 39 were previously funded by HUD’s Community Development Block Grant and will be funded by HPW going forward.” She told council the consolidation should improve efficiency and be seamless for residents.

The department’s FY26 proposed budget is about 49% smaller than FY25’s budget, Sims said. From the department’s general fund allocation, she said roughly 60% is allocated to personnel and about 37% to supplies, services and restricted accounts. Sims also told council the department is absorbing the mayor’s offices for people with disabilities, human trafficking and domestic violence, and veterans and military affairs; those units will be consolidated into the Department of Neighborhoods in FY26.

Sims described program-level figures: community engagement (fund 1000) has a referenced amount of about $1,560,000; New Americans services in fund 1000 are about $3,386,000; the gang prevention and intervention program is about $675,000; and veterans affairs in fund 1000 is roughly $271,000. She said administrative services decreased because lease and other costs tied to the former code enforcement division transferred to HPW.

Sims outlined personnel actions and metrics: 5 of 9 employees eligible for a voluntary municipal retirement payoff accepted the offer; the department is requesting about four employee reclassifications tied to the consolidation and its reorganization; and an internal staffing rebalancing will result in managers having at least four direct reports. She said the department hired a grant-funded, full-time analyst to improve key performance indicator (KPI) measurement and will add a customer-service representative to support volunteer initiatives.

On program impacts, Sims said the gang prevention division—a team of about eight—lost roughly a third of its staff, including its division manager, to the retirement offer and that one KPI (educational and gang awareness presentations) “may fall short.” She said the department will continue gang-outreach counseling and train staff to identify possible trafficking victims. Sims said the human-trafficking program began reporting to the department in October 2024 and will be fully consolidated in FY26; she said the program is currently funded from HPD settlement funds totaling about $243,000 and that the division has one FTE with vacancies to fill.

Council members asked questions and raised concerns. Council Member Martinez said, “I am concerned with the reduction in the gang prevention. Victor was a huge asset,” and urged the department to partner with Parks and community groups for preventive youth programming. Council Member Davis emphasized community-led efforts and asked about veterans staffing; Sims replied, “The process shouldn’t change. You shouldn't see a significant change in the process, and we'll continue to make that for all of our programs…to ensure that the service can be maintained.”

Public commenter Jack Valensky asked the department to continue working with super neighborhoods and to maintain the grants and administrative support those groups receive.

Sims closed by reiterating the department’s focus on partnerships, neighborhood outreach and improving residents’ access to city services as the department restructures. The workshop moved on after a brief break; the council planned to resume with a fleet presentation at 11 a.m.