DEPARTMENT: Neighborhood & Housing Services
DEPARTMENT HEAD: Verónica R. Soto, FAICP, Director, NHSD
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Housing Bond Charter Amendment Process and Timeline
SUMMARY:
Staff briefing on the process and timeline for a Charter amendment to align with the proposed 2022-2027 Housing Bond.
BACKGROUND INFORMATION:
The 2017-2022 Bond Program for the first time in San Antonio’s history included housing as one of the program areas. The housing bond proposition of the 2017-2022 Bond Program differs from the other 5 propositions in that for housing, the City utilized its Urban Renewal authority in order to be able to issue general obligation bonds. The Urban Renewal authority of the city does allow for issuance of the bond though this has many caveats that limit the range of activities and the methods the city may utilize for housing purposes and activities have to be adopted via an Urban Renewal Plan. The last Urban Renewal Plan and bond issuance had to be approved by the State Attorney General, something not needed for the other bond program propositions.
This was needed because the current city charter language allows for issuance of general obligations bonds for public works. The current City Charter Language, as adopted May 5, 1997 through Ordinance No. 85965, § 1 (Prop. 1), the City Charter, Section 98, Authority to Issue Bonds, states:
“The City shall have power to borrow money on the credit of the City and to issue bonds to construct, acquire, equip, renovate, improve and repair public works for public purposes and to fund or refund any bonded indebtedness;…”
The term public works for public purposes disallows the City to self-perform the implementation of a housing bond program without the help of the City’s Urban Renewal Agency.
2017-2022 Neighborhood Housing Bond Background
The 2017 Neighborhood Improvements Bond Program provides for the issuance of general obligation bonds to finance the cost of permitted activities as set forth in the adopted Urban Renewal Plan. The $20 million program is one component of the $850 million Bond package approved by voters on May 6, 2017. Chapter 374 of the Texas Local Government Code, as amended (“Chapter 374”), required the identification of specific geographic areas where Bond funds can be spent; after a public hearing, twelve (12) areas were incorporated into an Urban Renewal Plan approved by City Council on February 2, 2017 as Neighborhood Improvements Areas. The Urban Renewal Plan is the legal framework for activities conducted as part of the Neighborhood Improvements Bond.
To date, City Council has approved three (3) Neighborhood Improvement Bond Program projects. On January 17, 2019 Council approved the sale and development of 3830 Parkdale in Council District 8, on June 15, 2019 the sale and development of 711 S. Frio Street in Council District 5, and on October 3, 2019 the sale and development of 7402 S. New Braunfels in Council District 3.
ISSUE:
Currently, the City’s Home Rule Charter (the Charter) provides that the “the City shall have power to borrow money on the credit of the City and to issue bonds to construct, acquire, equip, renovate, improve and repair public works for public purposes and to fund or refund any bonded indebtedness.” Because the City Charter’s current language only permits construction for public works (a category that does not include functions of the type contemplated under the Housing Program), it is necessary that the City call for an election to amend its Charter. Suggested language for a Charter amendment proposition to accompany a bond proposition includes the following modification:
“The City shall have power to borrow money on the credit of the City and to issue bonds to construct, acquire, equip, renovate, improve and repair public works for permanent public purposes or any other public purpose and to fund or refund any bonded indebtedness...”
A Charter election is staff recommended for May 1, 2021. To meet the legal requirements, the election must be called for no later than 78 days before the election, no later than February 12, 2021. The ballot language must be final at the call for election.
ALTERNATIVES:
N/A
FISCAL IMPACT:
N/A
RECOMMENDATION:
Staff recommends a Charter amendment election on May 1, 2021 to Sec. 98, Authority to Issue Bonds, to include the term “permanent public purpose or any other public purpose” to allow for the City to self-perform the implementation of a housing bond program in time for the 2022-2027 General Obligation Program.