City of Houston must return at least $45 million to state after failing to build affordable housing

HOUSTON, Texas (KTRK) -- The City of Houston must return at least $45 million in federal funding to the state after failing to follow through on its promise to build affordable housing with the money.

"We should be talking about why didn't we build the houses when we were on schedule to do so," Mayor John Whitmire said.

The city used money from a post-Harvey Federal Disaster Recovery Program administered through the state to purchase three lots. Officials under the Turner administration promised to build hundreds of homes on them.

"The need is vast," Mayor Pro Tem Martha Castex Tatum of District K stressed.

A recent National Low Income Housing Colation study ranked Texas the third-worst state in the country for affordable housing.

RELATED: Houston wanted to lead the nation in long-term affordable housing. Now it's backpedaling.

Last September, city officials told the state they could not meet its deadline to start construction, obligating them to pay the state, which will, in turn, pay the federal government back.

On Wednesday, the Houston City Council started that process, beginning discussions about listing the lot.

"We're cooperating with GLO (The Texas General Land Office). We hit the restart button," Whitmire said.

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