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Board debates using economic development and infrastructure funds to spur entry‑level and affordable housing
Summary
Staff briefed the board on options to use COSIDC economic development funds to support infill and affordable housing under Texas code; discussion focused on deed restrictions, tracking occupant eligibility, and using infrastructure (water) funding to lower development costs for entry‑level housing.
Economic Development Director Ryan Gaddy told the board staff had reviewed the possibility of using development incentives to support affordable housing and infill projects and reported legal and administrative hurdles.
Gaddy and legal staff said the Texas statutory framework allows some economic development funds to support infill affordable housing but requires administrative safeguards to verify occupant eligibility and property restrictions. Staff said an affordable single‑family price point under the referenced framework would be roughly $228,000–$240,000 (based on about 65% of median household income); that level may still be unaffordable for many prospective buyers once taxes, insurance and interest are included.
Board members recommended several approaches: deed restrictions or LURA‑style covenants to preserve affordability for a set term, partnering with nonprofit administrators to manage occupancy restrictions, using assessments or bonds as financing tools, or focusing on up‑front infrastructure (water and sewer) funding to reduce per‑lot development costs. Gaddy and legal counsel cautioned that using water fund dollars for residential infrastructure may be legally constrained and would require analysis of the statutory definition of eligible water projects.
Members discussed previous local examples where assessments were applied to adjacent properties to finance infrastructure and noted that deed‑restricted single‑neighborhood approaches could be workable but would require enforcement and clawback provisions if market conditions change. Several members urged the city to pursue more creative solutions and accelerate strategic planning to identify sites where infrastructure investments could unlock affordable development.
No formal action was taken; staff will continue exploring legal options, potential deed‑restriction models and coordination with the development task force and City Council.
