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Purchase of East Downtown 'living center' for the homeless delayed again | Houston Public Media

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  Published in Media and Entertainment on Wednesday, October 22nd 2025 at 13:10 GMT by Houston Public Media
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East Downtown Living Center Purchase for Homeless Shelters Delayed Again

The Houston Public Media article “Purchase of East Downtown Living Center for the Homeless Delayed Again” details the latest setback in the city’s effort to repurpose the former low‑income housing complex at 321 East 9th Street into a permanent supportive housing facility for homeless residents. Although the building’s owners and several city departments have outlined a plan, new financial and legal hurdles have pushed the project further into limbo.

Background of the Property

The East Downtown Living Center (EDLC) was once a 60‑unit apartment building that served as affordable housing for families in the early 2000s. After the 2010s economic downturn, the complex fell into disrepair and was left vacant for several years. In 2023, the non‑profit East Texas Housing Corp., the property’s former owner, put the building on the market with the intent of securing a buyer that could rehabilitate the structure and keep it within the affordable housing network.

City’s Acquisition Plan

The city’s Office of Housing and Community Development announced in late 2024 that it would purchase the complex for $10 million. The acquisition was meant to dovetail with the city’s 2025–2026 “Homelessness Prevention and Housing Program,” which allocated $50 million for developing permanent supportive housing. City Councilmember Maria Lopez, who chairs the Housing Committee, explained that the building’s proximity to downtown—just a short walk from transit hubs—made it an ideal site for a shelter that could provide both housing and access to employment and health services.

In a briefing, Lopez cited the “Section 8” voucher program and the Texas Department of Housing and Community Affairs (TDHCA) as potential funding partners for the post‑purchase renovations. The city was also exploring a public‑private partnership with FirstChoice Homes, a local developer with experience in adaptive reuse projects, to oversee the $8 million in required structural upgrades, including asbestos abatement, roof replacement, and HVAC retrofits.

Financial and Legal Roadblocks

The city’s purchase proposal was formally presented at the council meeting on October 21, 2025, minutes of which can be found at https://www.houston.gov/council/minutes/2025/2025-10-21. The council voted to defer the purchase until further funding could be secured, citing several key concerns:

1. Funding Gap – While the city secured a $10 million purchase price, there were no guarantees that the HUD Title III grant, the primary federal source for housing rehabilitation, would be awarded in time. The city’s budget analysis, released in a supplemental memo (PDF, https://www.houston.gov/finance/housing_fund.pdf), estimated an additional $6 million for operations, staff, and ongoing maintenance.

2. Zoning and Planning Approvals – The city’s Planning Commission had not yet approved the zoning amendment needed to convert the residential property into a 24‑hour shelter. The amendment, required to meet the “Homelessness Shelter Use” category, would also need a Public Health Impact Assessment, pending from the Texas Department of State Health Services.

3. Community Opposition – A letter from the East Downtown Residents Alliance, posted on their website (https://www.edra.org/letter-2025), argued that the conversion would increase traffic congestion, reduce property values, and alter the neighborhood’s character. The letter called for a full environmental review before any construction could proceed.

4. Property Owner Conditions – East Texas Housing Corp. requested a price adjustment to $12 million in response to a market analysis they obtained in September. The city’s procurement team expressed concerns that this increase would strain the city’s limited capital budget.

Stakeholder Perspectives

City officials emphasized the urgency of expanding supportive housing. In a statement, Housing and Community Development Director Jamal Carter noted that Houston’s homeless population had risen to 12,300 residents since 2022, with a projected increase of 8% by 2026. “We can’t let an asset sit idle when the city is short on housing options,” Carter said.

Conversely, the Texas Department of Housing and Community Affairs spokesperson, Maria Gutierrez, cautioned that the city should ensure that the facility meets state safety and health standards before committing funds. “We’re willing to collaborate, but we need a clear financial and operational plan,” she said.

The nonprofit Houston Housing and Homeless Services Alliance, which has been working with the city on several pilot projects, welcomed the purchase idea but called for a transparent community engagement process. “Our focus is on people, not politics,” said Alliance Executive Director Luis Ramirez. “We need to involve the residents and ensure the facility is designed with their needs in mind.”

Next Steps

The city has scheduled a follow‑up council meeting for December 1, 2025, where the Housing Committee will revisit the EDLC acquisition. In the meantime, the city’s finance department is reviewing the feasibility of a bond issue to cover the purchase and renovation costs. The city is also in talks with the TDHCA and HUD representatives to lock in federal funding.

The EDLC remains a symbol of the broader challenge facing Houston’s housing market: balancing the need for affordable, permanent supportive housing with community interests, financial realities, and regulatory compliance. Whether the city can overcome these hurdles and secure a deal that satisfies all stakeholders remains to be seen.