HUD Approves $5 Billion Recovery Plan for Houston Area
On Monday, June 25, the U.S. Department of Housing and Urban Development approved a plan of action submitted by the Texas General Land Office for recovery and repair in the wake of Hurricane Harvey. This is welcome news not only for the area and its citizens, but the apartment industry, as well.
$250 million of the overall $5 billion plan are earmarked for the reconstruction, rehabilitation and new construction of affordable multifamily housing projects. This will help address the crippling lack of affordable housing supply that has hit the Houston area since the storm, owing to the destruction it caused.
“The GLO is committed to its mission to expedite federal housing recovery assistance as quickly as possible to help those affected by Hurricane Harvey,” Land Commissioner George P. Bush said in a written statement. “Due to the GLO's pre-planning and preparation, these federal recovery funds will be in the hands of Texans faster than in previous disasters.”
These funds are eligible for application, up to $25 million per development, by developers, public housing authorities, units of local governments and not-for-profit developers. According to the plan, 80 percent of funds allocated must address unmet need in the HUD-identified ‘most impacted and distressed’ areas. A minimum of 51 percent of the units are 20 or more years of an affordability period for low- and moderate-income (LMI) individuals earning 80 percent or less of the Area Median Family Income (AMFI) at affordable rents. Other conditions apply as well, and can be found on page 84 of the report, linked here.
The program will be distributing funds for three years starting with the plan’s approval. A process to apply will be forthcoming from the General Land Office. NAA will be monitoring the rollout of the process in Houston, and look forward to the industry’s opportunity to assist in the recovery of the Houston area in the wake of this devastating hurricane.