HUD committee advances Prop NS updates that raise stabilization caps and tie funding to inflation

Alderman Aldridge presented board bill 87 to the HUD Committee and the panel voted 7–0 to advance the ordinance with an amendment that ties Prop NS stabilization caps to the Consumer Price Index and shifts caps from unit-type to square-footage categories.

The changes are meant to align Prop NS funding limits with current construction costs and to expand the scope of eligible interior work. "This bill changes how bonds are funded and how stabilized vacant units are treated," Alderman Aldridge said, describing three main changes: square-footage-based caps, CPI indexing to prevent reductions because of inflation, and expanded eligibility for interior demolition and water/sewer connection work.

Officials from the Land Reutilization Authority and St. Louis Development Corporation told the committee the program was created in 2017 and has been refined based on data and community input. LRA staff reported that 678 nominations have been received for the program, roughly 300–350 buildings have been inspected or rated, 219 buildings were approved for stabilization and 189 stabilizations completed; of the completed projects, 119 have sold and about 19 more have offers pending.

In committee discussion members pressed for clarity on how prescriptive the new caps would be and whether the program would retain flexibility. "The proposed legislation is an 'up to' amount," an LRA representative said, explaining that committee review, LRA board approval and the competitive bidding process all remain steps that determine the final scope and cost for each property.

During public comment, Katie Berry, past president of St. Louis Realtors and an 8th Ward resident, urged the committee to consider operational tweaks to keep properties moving through the pipeline. "From a realtor's perspective, predictability is critical because private investment is far more likely to follow public investment when rules are clear and consistent," Berry said, and she recommended allowing qualified outside inspectors to supplement the building division when staffing constraints slow initial assessments.

Committee members also asked how the May tornado affected Prop NS properties and whether damaged properties could be re-prioritized. LRA told the committee about 20–30 stabilized buildings experienced some damage from the storm, including four total losses and roughly 10 with significant damage. James Morrow of the city council office cautioned that previously issued bond indentures constrain spending for earlier bond cycles; higher caps would be prospective and apply to the next bond cycle if the cooperation agreement (board bill 125) is adopted.

The committee adopted an amendment to board bill 87 that clarified CPI indexing language, then moved the amended bill forward with a do-pass recommendation. Clerk roll call recorded 'aye' votes from Aldermen Cone, Schweitzer, Keys, Vice chair Sonia, Browning, Aldridge and Chair Clark Hubbard.

The committee also advanced board bill 125, the companion cooperation agreement that aligns LRA's sales and marketing obligations with the amended ordinance. Legal counsel confirmed the cooperation agreement incorporates the ordinance changes by reference and retains existing pilot language for clarity. The committee gave board bill 125 a do-pass recommendation by the same 7–0 vote.

What happens next: both bills were advanced out of committee with do-pass recommendations; any further hearings, floor votes or technical edits will be scheduled according to the Board of Aldermen's process.