GALVESTON, Texas — Two new housing programs under development by the housing authority would pay for some public housing residents to set aside money to buy houses and others to live in mixed-income apartments and duplexes throughout the island.
Galveston Housing Authority officials are working with landlords to develop these two pilot programs to diversify public housing and boost the numbers of homeowners in Galveston, where more than two-thirds of residents rent.
The agency hopes to have 50 homes available through one of these programs within the next four months, Executive Director Harish Krishnarao said.
The other program, a lease-to-own program, eventually could provide residents with up to 50 homes, but that program is on a longer track, Krishnarao said.
Krishnarao said he’s also hoping the 100 homes would count toward the agency’s pledge to build 179 units of housing scattered throughout the island as part of its overall plan to rebuild the 569 units of public housing destroyed when Hurricane Ike struck Galveston on Sept. 13, 2008.
The agency is trying to get approval from Lone Star Legal Aid, which threatened to seek an injunction against any plan that reduced the number of public housing units available on the island. The advocacy group has so far expressed opposition to the new programs, Krishnarao said.
Lone Star Legal Aid spokeswoman Britney Jackson did not return calls seeking comment.
Island Realtors say they are excited about the programs, which they say could help provide public housing residents new alternatives while providing landlords steady income during the recession.
Karol Deem, owner of Deem Realty, said she supported the lease-to-own program, which could help public housing residents purchase their first homes, and in turn, build pride in their neighborhoods.
Under the lease-to-own program, the housing authority would put subsidies into an escrow account for families who earn 80 percent or less of the area median income. The money would go toward down payments on houses those families are renting.
Under this lease-to-purchase program, a family that earns $28,000 a year could accumulate a down payment of $16,800 within four years. The program would be limited to first-time home buyers who are employed full-time, unless they are elderly or disabled.
The families also must participate in the agency’s self-sufficiency program. The agency is seeking to revitalize neighborhoods through the acquisition and rehabilitation of vacant, dilapidated properties, which would then be leased to low-income residents. The program would encourage residents to purchase the houses in two to five years, while they repair their credit.
"This is an opportunity for these people to transition into mainstream America," Buzz Elton, a landlord who participates in the Section 8 program, said. "They can earn equity, and this gives them an opportunity to move their families into something that’s not just a rental unit."
Under the second program, called the Project Based Voucher Program, the housing authority would provide landlords with subsidies to set aside up to 25 percent of their apartment complexes, town houses or duplex developments for public housing residents who earn less than 80 percent of the area median income.
Preference would be given to full-time students, including those enrolled in job training programs, and people who work at least 30 hours a week.
Krishnarao said agency officials are considering giving a handful of landlords subsidies for up to five years to house residents in newly constructed, existing or rehabilitated units.
The program will generate a steady stream of income to developers who want to pay down debts incurred during construction or rehabilitation of new developments, while creating blended communities of public housing residents who live next door to tenants who don’t qualify for public housing, the housing authority has said.
Deem said she was concerned about the restrictions on those units, particularly the priority given to students.
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Project Based Voucher Program
The housing authority provides subsidies to landlords to set aside up to 25 percent of a development’s units for people who earn less than 80 percent of the area median income.
How it works: Unlike Section 8 vouchers, these subsidies are attached to specific units that are newly constructed, existing or rehabilitated. Preference will be given to full-time students and people who work a minimum of 30 hours per week.
Lease-to-Purchase Program
The housing authority would provide subsides for public housing residents to put in an escrow account, with the idea that those residents would use that money as a down payment on houses they are renting.
How it works: As residents rent houses for two to five years, they accumulate money for a down payment and to repair their credit. First-time homebuyers who work full-time (unless they are disabled or elderly) qualify. They must also participate in the agency’s family self sufficiency program.
Source: Galveston Housing Authority
