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Housing department proposes CDBG/HOME budget transfers; council members warn about impact on code enforcement
Summary
HCDD asked the committee to approve a set of substantial amendments moving CDBG and HOME funds to homebuyer assistance and multifamily development, including $645,759.52 moved from code enforcement to homebuyer assistance; council members expressed concern about reduced funding for code enforcement and dangerous building work.
Kanisha London, deputy director of the Housing and Community Development Department, presented proposed substantial amendments to the CDBG and HOME budgets across several annual action plans and outlined three transfers: $645,759.52 of CDBG funding from code enforcement and dangerous buildings to the homebuyer assistance activity (2024 annual action plan); $3,300,000 of HOME funds from tenant-based rental assistance to multifamily development (2020–2021 action plans); and $2,400,000 of HOME funds from the CHDO set-aside for single-family housing to multifamily development (2022–2023 action plans).
Council members raised concerns that shifting roughly $645,000 from code enforcement could constrain the city’s ability to address dangerous buildings and blight, particularly in ZIP codes with high need. One council member said, “I have pause about the transfer of, you know, half 1,000,000 going to the down payment assistance program,” and asked what resources would remain for demolitions and enforcement work.
HCDD staff responded that the $645,759.52 remained unexpended as of the end of June and had been budgeted for code enforcement inspectors (staff time under a letter of agreement). Staff said much of the dangerous-building work is now performed by Houston Public Works and that moving these CDBG dollars to homebuyer assistance would free up TERS/Redevelopment funds previously used to support single-family eligible homebuyers. The department said the reallocation would enable continued down payment assistance while honoring federal CDBG rules and spending deadlines.
Staff emphasized they would continue discussions with council offices about district impacts and asked council members to share partnership information with their offices. No formal vote occurred in committee; staff said they would return to council with ordinance language for the amendments and provide supplemental materials, including a graph of developments by district on request.
