San Antonio staff recommend $18.5M in gap funding, including CLT awards, from 2022 housing bond

City staff recommended that the council approve roughly $18.5 million in gap funding on projects selected through a competitive solicitation process, officials said April 1 during a San Antonio B session.

Veronica Garcia, director of the Neighborhood and Housing Services Department, said the awards draw on the city's 2022 affordable housing bond and federal CDBG and HOME funds to preserve and build rental and homeownership opportunities. "Today's briefing includes nearly $21,000,000 of awards for eight projects, which were selected through a competitive procurement process," Garcia said.

The staff recommendations concentrate on deep affordability and proximity to transit. Garcia said the scoring committee prioritized family-size units, units at 30% of area median income and projects within a quarter-mile of the city's Green or Silver ART lines. The committee also reviewed displacement impact assessments and concluded none of the recommended projects would cause permanent displacement, she said.

Key recommended awards include a $4.5 million bond award for preservation and rehabilitation of 111 West Travis, a historic multifamily property downtown that would preserve 63 affordable units (including 13 at 30% AMI) and add accessibility improvements that require temporary relocation; and roughly $5.6 million for a 68-unit supportive housing project serving youth (the project includes 14 units at 30% AMI and onsite wraparound services provided by Sam Ministries). Garcia said the youth project will also compete for 9% low-income housing tax credits later this summer.

Staff also recommended a $1.75 million CDBG loan for Aurora MLK (a 288-unit development with 44 deeply affordable units) and a $2.5 million bond award for Heritage Estates at Medina, an 86-unit project for older adults with an emphasis on veterans that previously received 9% tax credits. For homeownership, staff recommended about $4.2 million in federal funds to support 51 new affordable homeownership opportunities, including $4 million for a Habitat for Humanity subdivision that would produce about 47 homes priced near $160,000 with 0% interest mortgages for buyers.

In the community land trust (CLT) category staff recommended funding two organizations and asked council to consider up to $2.2 million in bond funds to support roughly 20 single-family homes. Garcia said CLT awards require a long-term ground lease (up to 99 years) and the scoring emphasized governance, community engagement and long-term affordability.

Council members responding to the briefing generally praised the projects but pressed staff for additional detail. Deputy Director Ian Benavides said loan terms vary by project (often 10'25 years) and that repaid funds return as program income for future affordable-housing work. One council member asked for a citywide list of past bond awards, unit breakdowns and the percentage of project cost covered by gap funding to better evaluate ongoing strategy.

Staff said the recommended projects were selected because they scored highly on affordability measures and project readiness; Garcia noted some projects had already secured or were likely to secure tax credits, which reduced the city's gap ask.

The briefing concluded with councilmembers endorsing further committee review of finer policy details for future bond cycles. The staff will return the formal award items to the council in ordinance or contract form for final action.