San Antonio staff recommend $34 million package from housing bond and federal funds to build, preserve affordable homes; council to act next week

City staff on June 5 presented City Council members with recommended awards from San Antonio’s affordable-housing bond and federal funding streams totaling about $34,000,000 for production, rehabilitation, preservation and acquisition of affordable rental and ownership housing.

The presentation by Verónica García, director of the Department of Neighborhood and Housing Services, said the recommendations draw on the 2022 affordable-housing bond, HOME-ARP and CDBG funds and aim to produce and preserve units serving households at a range of area median income (AMI) levels, with particular priority for units at or below 30% of AMI.

García told the council the round produced 22 applications; the selection panel recommended funding for eight projects. The packet presented to the council includes recommended awards and underwriting terms for six rental/rehabilitation projects that together would receive approximately $25,700,000 and are expected to create or preserve 686 affordable rental units.

Staff identified several recommended projects and funding terms in the presentation: a Robert E. Lee rehabilitation project with a recommended $4,743,000 zero-interest loan to extend affordability for 72 units; Sector Heart Village, a rehabilitation project recommended for a $6,000,000 zero-interest loan to preserve and add units and resident services; a $2,200,000 loan for an identified 78-unit property (loan at 4% interest contingent on securing 9% tax credits); Central Commerce (Union Development Holdings) recommended for $6,000,000 toward 279 units, including deeply affordable units; Testle Road Apartments recommended for approximately $3,610,000 pending 9% tax credit award; and a new senior-oriented rental community recommended at about $3,100,000 and noted as partially funded pending tax-credit outcomes.

García said the bond program prioritizes projects ready to start within six months and projects within a quarter-mile of high-frequency bus lines. She said the selection panel included city staff and community representatives and applied criteria previously approved by the Council. The staff presentation listed additional recommended awards totaling funds for homeownership production (approximately $3.2 million recommended for two projects to produce 51 owner units) and noted that roughly $14,000,000 of bond funds remain uncommitted.

City Manager Eric Walsh and staff described the item as a report for council review; Walsh said the council will receive a memorandum and is expected to consider action on the recommendations next week. Councilmembers who spoke during the discussion emphasized continued focus on units for households at 30% AMI and asked for regular updates on progress toward the city’s housing goals.

The presentation also included program-level totals: staff said the bond program has pledged or committed roughly 90% of voter-approved funds to date and that earlier rounds have produced thousands of affordable units and preservation activity. Staff said the city’s overall need remains substantial; a staff comment cited an implementation target of roughly 28,000 additional units citywide to meet identified need.

Next steps, as stated by staff, include individual Council consideration of recommended acquisitions and awards, ongoing coordination with the San Antonio Housing Trust and follow-up reporting to the Council in summer.

Votes and formal action on specific awards were not taken at the June 5 meeting; staff presented the report and requested Council direction and future action.