City outlines plan to transition Kyle Housing Authority back to independent governance

City staff updated council on recent developments at the Kyle Housing Authority (KHA), summarizing board turnover, termination notices from management partners, temporary arrangements with the Housing Authority of the City of Austin (HACA), and steps the city has taken to stabilize operations. Amber Schmidt, deputy city manager, told council that in March 2025 the KHA had entered into memoranda that would remove significant tax‑exempt value from properties and that city involvement had expanded beyond the intended oversight role. Staff said they assisted with interim property management, budget adoption and recruitment of a permanent executive director.

Schmidt said the city intends to support KHA recruitment and organizational transition but emphasized the arrangement is unsustainable for long‑term city operations. Council members asked for timelines and clarity about prior votes and whether any city obligations had been assumed permanently. Staff said they advertised the permanent executive director position, expect a three‑week application window and aimed to have an executive director in place and KHA governance restored within approximately 60 days, with continued short‑term staff support during recruitment.