The Houston Housing Authority’s efforts to increase affordable housing options for very low-income renters in the city have come under scrutiny following an audit revealing a disconnect between the intended goal and the actual outcomes of tax deals designed to create more accessible housing. The audit found that only 1% of the tax-exempt units created through these deals actually cater to the needs of Houston’s extremely low-income residents.
The Tax Exemption Program
The housing authority exempts certain apartment complexes from property taxes in exchange for making some units affordable to low-income residents and paying a fee to the authority. While developers benefit from saving on property taxes, the audit discovered that rents were not being reduced enough to truly assist Houstonians with very low incomes. According to Rebecca Schuetz, who covers housing for the Houston Chronicle, this is a statewide tax exemption program that has failed to effectively address the housing needs of the most vulnerable populations.
Legislative Efforts
During the last legislative session, there was a reform bill aimed at ensuring a certain percentage of the tax breaks received by developers would be allocated towards lowering rents. However, the Houston Housing Authority and other housing authorities across the state have opted to use a different part of the tax code that was not covered by the reform bill. This loophole has allowed for the continuation of inadequate affordable housing solutions for those in dire need.
Schuetz highlighted the importance of project-based vouchers in creating truly affordable housing for individuals with very low incomes. While the Texas Legislature cannot control federal housing voucher funding, there is a growing interest in reforming the tax code to align with the laws passed in the previous legislative session. This potential reform could potentially address the shortcomings of the current tax exemption program and improve housing options for those in need.
Utilizing Funds for the Needy
One area of concern is the $53 million collected by the housing authority through the tax exemption program. There is a question as to whether these funds could be utilized to target programs specifically towards extremely low-income renters. While the housing authority has mentioned using some of the funds for initiatives such as purchasing land and contributing to the redevelopment of Cuney Homes, there is a lack of transparency regarding how the money has been spent and whether it has effectively increased the pool of affordable units for this population.
It is crucial for the housing authority to allocate resources in a manner that directly addresses the pressing needs of extremely low-income renters in Houston. By leveraging the collected funds to create more government-subsidized housing and expanding support for this vulnerable population, the authority can make a significant impact on improving access to affordable housing options.
In conclusion, the audit of the Houston Housing Authority’s tax exemption program has shed light on the shortcomings in creating affordable housing solutions for very low-income renters in the city. While there have been efforts to address these issues through legislative reform and potential changes to the tax code, more comprehensive measures are needed to ensure that the housing needs of the most vulnerable populations are effectively met. Transparency, accountability, and a focus on targeting resources towards those in greatest need are essential in advancing affordable housing options in Houston.
