Mayor Turner is a Housing Supervillain

Houston is facing a housing crisis that affects thousands of low-income residents who struggle to find decent and affordable places to live. The city needs more housing options that cater to the needs of its diverse and growing population, especially those who earn less than 60 percent of the area median income. One way to create more affordable housing is to use public facility corporations (PFCs), which local housing authorities can create and which can give developers tax breaks in exchange for reserving some of their units for low-income renters.

However, Mayor Sylvester Turner has recently decided to halt the approval of new PFC deals, saying that he wants to review the impact of these tax breaks on the city's budget and services. He also said that he wants to establish clear guidelines and criteria for selecting PFC projects that are in the best interest of the city and its residents. While these are valid concerns, they should not be used as an excuse to stop or delay the creation of much-needed affordable housing. The mayor's decision is a genuine catastrophe for several reasons:

PFC deals have proven to be a good and efficient way for Houston to get affordable housing units. According to the Houston Housing Authority (HHA), PFC deals have resulted in 12,600 apartments with discounted rents, 5,000 of which are reserved for households making 60 percent or less of the city's area median income. These units are spread across different neighborhoods and offer quality amenities and services to their residents. PFC deals also bring in private money and reduce the need for public subsidies, which makes them more cost-effective than other programs that help people get affordable housing.

PFC deals have a minimal impact on the city's tax revenue and service delivery. The HHA estimates that each PFC deal saves about $1 million per year in property taxes, which is a small fraction of the city's $5 billion annual budget. Moreover, the city already has a cap on the amount of property taxes it can collect, which it usually reaches every year. Therefore, PFC deals do not affect the city's ability to fund its core services or meet its obligations. On the other hand, PFC deals can be good for the city's economy and society. For example, they can raise property values, create jobs, cut down on homelessness, and improve public health and safety.

PFC deals are subject to rigorous review and oversight by multiple stakeholders, including the HHA board, the city council, the county commissioners court, and the school districts. These groups have the power and responsibility to look at each PFC deal and decide whether or not to approve it based on its benefits and effects. The HHA board, which consists of seven individuals chosen by the mayor and approved by the city council, has been choosing and approving PFC deals that adhere to strict quality and affordability standards using a transparent and accountable process. The mayor's interference takes away from the HHA board's independence and expertise. It also makes things more confusing and uncertain for developers and investors who want to work with the HHA to build affordable housing.

The mayor's decision to stop PFC deals is a real disaster because it puts the future of cheap housing in Houston in danger. It sends a negative message to developers, investors, and residents that the city does not value or support affordable housing as a priority. It also contradicts the mayor's own vision of building a more equitable and inclusive city that offers opportunities for all. The mayor should reconsider his decision and resume approving PFC deals that meet the needs and expectations of Houstonians who deserve decent and affordable places to live.

Thanks to this piece by R.A. Schuetz for reference.

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