Houston is facing renewed tensions with Harris County regarding the funding of Mayor John Whitmire’s ambitious initiative to end street homelessness.
Despite the city’s commitment to addressing this pressing issue, the funding for the initiative has fallen short of its target, prompting the city to seek federal funds to bolster its efforts.
Recent developments include the Harris County Commissioners Court reallocating $20 million from a guaranteed income program the county is discontinuing.
The reallocation involves distributing $8 million for eviction protections, $8 million for homelessness initiatives, and $2.5 million for food insecurity.
While the city’s housing department has asserted that the $8 million allocated for homelessness will support the Mayor’s Homelessness Action Plan, the department has yet to reach its annual goal of $70 million.
The plan still depends on awaiting both $16 million from the county and an additional $20 million from private philanthropic sources.
Mike Nichols, the director of the city’s housing department, expressed optimism about raising these funds, stating, “We are actively exploring how we can use eviction prevention funds.”
Conversely, Thao Costis, the director of the county’s housing department, clarified that the county does not refer to this initiative as the Mayor’s program.
Costis mentioned in an interview with Houston Public Media, “We’re not calling it the mayor’s plan necessarily because the mayor is focused on, you know, downtown. Yes, ending street homelessness is something that we all want, and we’re trying to contribute to the bigger end street homelessness plan.”
In response to Costis’ remarks, Nichols indicated that the plan requires significant collaboration and the blending of various funding sources.
“There’s not any tension,” Nichols said.
He assured that both departments would work together with the respective leaderships determining the allocation and use of the funds.
The initiative’s ambitious $70 million goal depends heavily on external contributions.
So far, the city has contributed $3.5 million from its general fund and $14 million from federal funds, while the Metropolitan Transit Authority of Harris County (METRO) has contributed $10 million.
Additionally, Houston First Corporation, serving as the marketing arm of the city government, has provided $2.6 million.
To further aid the homeless initiative, the city’s housing department has begun pursuing other federal dollars to fund its projects.
With a deadline looming for spending federal disaster recovery funds from Hurricane Harvey, the department is seeking to divert $12.5 million from other programs, such as home buyouts and economic revitalization, towards its homelessness initiative.
Approximately $40 million remains unspent from the over $600 million recovery funds allocated by the U.S. Department of Housing and Urban Development (HUD) eight years after Hurricane Harvey severely impacted the city.
Recently, the Houston City Council granted the housing department permission to request reallocations of these remaining funds.
The proposed changes include redirecting funds toward homelessness, along with establishing nearly a $20 million fund for down payment assistance for Harvey-affected residents and a nearly $5 million boost for home repair reimbursement programs.
The adjustments would be funded by reductions in programs aimed at single-family development, flood buyouts, and economic revitalization, pending approval from the Texas General Land Office (GLO) and HUD.
Nichols expressed that funding aimed at resolving homelessness is both necessary and appropriate, given the impact of Hurricane Harvey on those already experiencing homelessness.
He detailed that the $12.5 million would be utilized for creating hubs for the homeless population throughout the city, including a central Houston location, along with additional facilities in surrounding areas.
In efforts to provide immediate assistance to the city’s homeless population, Nichols shared plans to leverage existing emergency homeless beds and collaborate with various nonprofits, particularly faith-based organizations, to aid in the transition to services and permanent housing.
Nichols is optimistic that negotiations with the GLO regarding the proposed funding changes will conclude in the upcoming weeks or months.
A spokesperson for the GLO assured that the agency is working closely with the City of Houston to ensure all disaster recovery funding is optimally utilized before it expires in February 2027.
The successful diversion of funds towards homelessness could significantly bolster Whitmire’s objectives, as the initiative remains approximately $40 million short of its $70 million target due to ongoing efforts to secure necessary contributions from both the county and private donors.
Without adequate funding for services and housing, city officials have voiced hesitance in relocating homeless individuals from public areas without providing them alternative accommodations.
Julia Orduña, the southeast Texas regional director for the nonprofit advocacy group Texas Housers, criticized the repurposing of funds for homelessness, labeling it as “politics at its worst.”
She stated, “The federal government intended this money to support recovery of Houstonians from the worst disasters that the city has ever seen, and instead, Mayor Whitmire is using these Harvey unmet needs as funding for extra dollars to fill their budget gaps,” despite noting her approval of the $20 million down payment assistance program.
Historically, relations between the city and the GLO have been strained.
In 2021, former land commissioner George P. Bush withheld funds from both the city and Harris County, despite them facing significant damage during Harvey in 2017.
Recent administration changes have led to improved relations, with Whitmire and new land commissioner Dawn Buckingham demonstrating a willingness to collaborate on disbursing the remaining $200 million in funding that must be utilized before expiration.
A GLO spokesperson commended the strengthened partnership, attributing the positive shift to the leadership of Whitmire and Buckingham.
In contrast, housing advocates such as Orduña have expressed frustration over the diversion of Harvey recovery funds towards homelessness, which they see as complicating the city’s handling of a separate $315 million recovery fund associated with three federally declared weather disasters in the previous year, including Hurricane Beryl.
Despite identifying $229 million in unmet housing needs, more than half of the grant funds have been slated for backup power generators at city facilities rather than addressing pressing housing and recovery needs.
“While I’m not shocked, I am concerned that the trend of making deals with the state to fill the budget gaps instead of addressing the root causes is continuously seen,” Orduña added.
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