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Committee presses city over tiny-home project after veteranspreference removed when federal grant used
Summary
City staff said nine tiny homes on Lafayette are in final inspection and due to open Jan. 2026, but committee members said presentations had promised veterans preference that was later removed after federal grant rules applied; the city manager committed to explore funding swaps or informal prioritization to benefit veterans.
Laredo city and county managers and committee members traded sharp questions on Nov. 4 over a nine-unit tiny-homes project meant to serve homeless and low-income residents. City staff said the Lafayette development is in final inspection and expected to be accepted by the end of December and open in January 2026, with nine units and a community center.
"Nine units with a community center," City Manager Ramon Chavez told the committee. The announcement prompted committee members to press staff about placement priorities for veterans. Several members said earlier project briefings had promised a preference for veterans but that the city later accepted federal grant funding that—under the rules of that award—removed the ability to give veterans preferential placement.
"We were told preference would be given," one committee member said during the meeting, summarizing the committee's view of the project's communications over several years. Committee members said a memorandum of understanding with a San Antonio organization that would have supported veteran-specific services fell through and that the change in funding was not clearly communicated to the committee before grant funds were spent.
City Manager Joe Nabb acknowledged the concerns and offered remedies staff are exploring: moving federal grant dollars to other projects and replacing those grant-funded components with general-fund dollars so the units already built could be prioritized for veterans, or designating veteran-priority units in phase 2. "We're gonna walk through this in both different directions," Nabb said, adding staff can informally prioritize homeless veterans for intake while formal funding changes are considered.
Why it matters: committee members said the advisory group's repeated recommendations were not followed and asked for clearer project management and communication. Multiple members asked that the committee's advice be placed on a future council agenda and that staff present a written timeline of funding decisions so the committee can review where communications broke down.
Next steps: city staff said they will review whether grant funds can be reallocated, consider general-fund substitutions, and bring a follow-up item to council; the committee urged that at least a portion of units be designated for veterans either now or in phase 2.
Attribution: statements and commitments on the record came from City Manager Ramon Chavez and City Manager Joe Nabb, and from multiple committee members who raised concerns about altered promises of veteran preference.
