The Houston Housing Authority will keep its $24.3 million commitment to build a 260-unit affordable housing complex in Independence Heights after previously threatening to end its long-standing deal with the developer.
After facing intense backlash from the northwest Houston community’s residents, local advocates and elected officials, the authority unanimously voted to not terminate its memorandum of understanding with developer Columbia Residential LLC on Tuesday.
The housing authority’s newly elected president and CEO Jamie Bryant said the project’s high cost — $78 million, or $300,000 per apartment — concerned the agency’s board of commissioners.
“There’s quite a bit of taxpayer money that’s going into this,” Bryant said. “If this was a market transaction, it would be different. There’s a lot of risk (in) not moving forward … and the board’s made a commitment to the community that this project will go forward.”
Representatives from the authority previously had declined to publicly explain why the board was considering terminating its agreement with the developer. A proposed resolution to strike the deal was added to the board of commissioners’ meeting agenda earlier this month, surprising neighborhood residents, the developer and advocates.
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Bryant on Tuesday said he could not specifically address what prompted the authority to consider terminating the agreement earlier this month, but he is looking forward to working directly with the community.
Rev. Ray Mackey, who serves on the Independence Heights Redevelopment Council implored the authority board on Tuesday to vote against the resolution to strike the contract. He also thanked HHA officials for meeting with community members to discuss how important this project is after the authority tabled the measure during its Feb. 4 meeting.
“I expressly want to say: Thank you for coming back out to the community,” Mackey said. “It started to feel like progress again.”
City Councilmember Mario Castillo attended Tuesday’s board meeting and said he appreciated the authority honoring its commitment to Independence Heights, a neighborhood that is rapidly gentrifying.
“They’ve been working for seven years (to build) this development and to get so close and to see this jump on the agenda has been very concerning,” Castillo said. “To see this vote take place today is a big sigh of relief knowing this project will continue.”
The District H council member, who represents Independence Heights, wrote a letter to HHA board Chairman Joseph “Jody” Proler last week questioning why the authority would want to renege on its memorandum of understanding with Columbia Residential and put committed bond financing, private investment and a 4 percent tax credit in jeopardy.
According to the memorandum, the housing authority committed a total of $23.4 million in funding. The developer, Columbia Residential, agreed to apply for a 4 percent tax credit through the Texas Department of Housing and Community Affairs that would cover about a third of the project’s cost and secure bond financing.
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Toni Jackson, Columbia Residential’s attorney, said earlier this month that the authority told the developer the project’s cost estimates were too high. Since then, she said several construction bids for various aspects of the project came in lower than expected.
Mardie Paige, president of Super Neighborhood 13 — Independence Heights, said she was grateful the board voted against the resolution and that more affordable housing in the community will offer residents a chance to stay in Independence Heights.
“(With the development) these children that we want to fill our elementary schools and our high schools would have to have somewhere to stay,” Paige said. “And low-income housing will fill the purpose.”
Mackey said the past several weeks since he initially spoke on the community’s behalf during the Feb. 4 HHA meeting have put the project into perspective.
“I stressed to them the gravity of their decision,” he said. “When I walked into HHA a couple of weeks ago, I saw single parent mothers and their children waiting and I thought about all of these Independence Heights residents waiting — seniors, the disabled and working poor waiting seven years for this development to come to fruition.”
Mackey, the former chair of the Independence Heights Greater Houston Baptist Ministers Alliance, said he was relieved future generations of Independence Heights residents will be able to stay in the community.
“It’s a big sigh of relief, for sure,” he added. “I’m appreciative to the commissioners for taking the time and validating what we’ve shared with them, keeping their integrity and honoring their commitment.”
Editor’s note: Rev. Ray Mackey is the father of Houston Landing Director of Finance Konner Mackey.
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