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Council committee adds $4.9M to home‑repair pipeline and debates options for the Stellar Link parcel
Summary
HCDD recommended a $4.9 million boost to the City of Houston home‑repair master contract to clear a backlog and reopen applications; staff also described why a DR17‑purchased Stellar Link parcel failed to attract compliant proposals under GLO/HUD rules and outlined alternatives including returning funds for down‑payment assistance.
The committee was told the Housing & Community Development Department plans to increase the city’s home‑repair master contract ceiling by $4.9 million to serve additional homeowners and clear an older pipeline.
Assistant Director Cedric Lassagne said the amendment would amend ordinance 2018‑56 and raise the maximum master contract value from roughly $60.9 million to about $65.8 million, enabling an estimated 20 to 25 additional families to receive repairs. "This additional funding that we're adding at this time will serve approximately 20 to 25 families," Lassagne said. HCDD noted the current pipeline included 55 homeowners awaiting service; last year’s program served 32 families.
Lassagne also walked the committee through several single‑family and CHDO actions: a loan and contingency funds to resolve sewer issues affecting two small developments, a change in the CHDO (Change Happens Development Corporation) agreement increasing maximum HOME investment dollars by about $996,726 and adding two lots to create up to 10 affordable homes, and an intercreditor/subordination agreement to permit Amity Bank to act as a bridge lender while preserving the city's lien restrictions.
Stellar Link: staff described a separate difficulty on a DR17‑purchased single‑family parcel called Stellar Link. The city ran a widely attended NOFA process—staff said 132 people attended a preproposal conference—but received only three proposals. "One was incomplete, and the other two failed to meet the guidelines," Lassagne said, citing a GLO/HUD requirement that at least 51% of homes be sold to families at 80% AMI or below. Staff explained the combined cost of land and construction and the limited per‑unit subsidy made the required affordability thresholds and Davis‑Bacon wage requirements difficult for many developers to meet under the program’s tight timetable.
Councilmembers asked what would make such sites more feasible. Staff suggested infusing more local dollars to reduce per‑unit subsidy pressure, considering alternative parcel subdivisions to attract multiple smaller developers, and exploring options to work with GLO on different terms. Director Nichols said that if the city repays GLO for the purchase and relocation funding, those funds can be returned for local down‑payment assistance and other homeowner programs.
Next steps: staff will supply further details on contractor lists and performance, provide the home‑repair program portal and timeline to council offices when it reopens, and return with options to develop the Stellar Link parcel under a different funding approach.
