San Antonio’s “Embarrassing” Loss of Affordable Housing Funds

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Millions of dollars in state housing tax credits are leaving San Antonio after the City Council failed to approve zoning for an affordable apartment complex on the Northeast Side.

The Texas Department of Housing and Community Affairs has directed $20 million in affordable housing credits away from San Antonio, following a failed attempt to support the developers’ projects, the San Antonio Express-News reported. 

In September, the City Council rejected Miami-based developer Atlantic Pacific Companies and local firm OCI Development’s zoning-change request to build the $25.7 million, 85-unit affordable housing project in the 14000 block of Nacogdoches Road. The council voted 7-4 in favor of rezoning, but the project required a supermajority, due to protests from nearby property owners. 

Councilman Marc Whyte, along with three others, opposed the changes, citing neighborhood concerns about traffic, crime and density.  

At the time Mayor Ron Nirenberg warned the council of the risk of losing the credits. 

“There were zero guarantees that the credits would be applied to another San Antonio project if they weren’t used for Vista Park,” he said. 

Whyte, however, pushed back, stating, “These tax credits are not going to leave San Antonio. They will be here on another project.”

Next in line for the credits was Dallas-based Rise Residential’s proposal for a $22.8 million, 88-unit affordable complex for seniors on the Northwest Side. But the agency denied that proposal because it didn’t meet financial feasibility requirements.

Nirenberg described the outcome as an “embarrassment” for the city. 

“A few Council members used an archaic rule to kill an affordable housing project, assuring the community they would get state support to build elsewhere,” Nirenberg said. “In the end, despite their assurances, San Antonio lost out.”

Other affordable housing developments are taking shape on the city’s East and South sides. 

The San Antonio Housing Trust, for instance, is seeking a development partner for a multifamily project on the South Side. The project will provide 530 apartments, including 90 senior housing units in its first phase. 

Additionally, the Trust is in the process of acquiring nearly 6 acres in the Cattleman Square neighborhood to develop more affordable housing. That project is focused on counteracting gentrification pressures while incorporating community feedback to ensure the development aligns with the needs of local residents.

On the East Side, Lennar’s Elm Trails tiny-home project is offering for-sale affordable homes priced at about $150,000. Despite some criticism about the size of the homes, the project is addressing affordability concerns and has already sold more than 50 percent of its units. 

— Andrew Terrell

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