DEPARTMENT: Office of the City Attorney
DEPARTMENT HEAD: Andy Segovia, City Attorney
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Proposed amendment to the City Charter to allow the City to issue bonds for permanent public improvements or any other public purpose including affordable housing projects. [Andy Segovia, City Attorney]
SUMMARY:
A briefing to the Housing Commission on proposed charter amendment language that would allow the City to issue bonds for permanent public improvements or any other public purpose. The amendment would allow the consideration by the City Council and voters of a broader range of choices for potential bond projects including affordable housing, economic development and address other community needs.
BACKGROUND INFORMATION:
The current bond language in the City of San Antonio’s Charter allows only for the construction of “public works” projects. The Charter Review Commission identified the need to include bond propositions that promoted the growth of our city’s affordable housing stock and provide the community with a greater array of potential bond projects to consider. The Mayor’s Housing Task Force also identified the need to revise the City Charter to provide added flexibility for affordable housing projects.
Recently, the City Attorney’s Office and the Finance Department worked with outside bond counsel to review and update the proposed amendment language to provide the most flexibility under State law. The revised language provides such flexibility while also acknowledging that bond projects must adhere to other applicable State law parameters. Additionally, the City Council has made it clear that affordable housing is a key policy priority and the added flexibility would facilitate development of bond projects for the projected 2022 bond proposal.
The proposed language aligns San Antonio with other Texas municipalities. Dallas’s 2017 bond program included an initiative to revitalize mixed income housing units. Austin voters approved an affordable housing bond proposition in 2018 that will aid in the construction and revitalization of nearly 3,500 rented and owned units.
The City Council and voters will retain the review, development, and approval process used for developing bond projects and placing them on the ballot for consideration by the voters.
City Council was briefed on this item at the February 3, 2021 “B” Session and on February 11, 2021 City Council will consider an ordinance ordering an election on Saturday May 1, 2021 for a proposed amendment to the City Charter allowing the City to issue bonds for permanent public improvements or any other public purpose, including affordable housing, as permitted by state law.
ISSUE:
In order to provide San Antonio voters with the opportunity to consider a broader array of bond projects, which could include affordable housing, economic development and other community needs, the City Charter’s current language must be amended. The current bond language only permits construction of “public works”, which has placed a limitation on the City’s ability to consider such projects.
City staff will brief the Housing Commission on the proposed charter amendment language that would allow the City to issue bonds for permanent public improvements or any other public purpose. The amount of funding, type of affordable housing projects, and specific affordable housing activities will be determined at a later date and will go through the community input process prior to going to City Council for consideration and ultimately the San Antonio voters for their approval.
ALTERNATIVES:
This item is for briefing purposes only.
FISCAL IMPACT:
This item is for briefing purposes only.
RECOMMENDATION:
This item is for briefing purposes only.