Midtown agency builds $22 million tower instead of affordable housing

HOUSTON, Texas (KTRK) -- A new investigation by our partners at the Houston Chronicle is shining a spotlight on how the Midtown Redevelopment Authority is handling millions of dollars meant for affordable housing.

The findings have frustrated many community leaders with the lack of movement in the last three and a half years.

The Midtown Redevelopment Authority is one of two dozen TIRZs, which are tax increment reinvestment zones. So no matter how much property value increases in these areas, the taxes that stay in these particular zones are not used to spend citywide.

With that said, The Chron has found Midtown built a $22 million tower with a garage with money earmarked for affordable housing.

That structure now sits half empty in the Third Ward at Emancipation and Elgin, according to the Chron's investigation.

Mike Morris, investigative reporter with The Chron, said that Midtown told them that they did not build affordable housing in this particular lot because this building was supposed to be "Houston's central clearinghouse for everything related to affordable housing" but apparently they are having a hard time getting affordable housing nonprofits in there because the leasing rates are too high.

"One thing community leaders are frustrated with is that on the first floor (of the building) there was discussion of putting retail space," he said. "Affordable space is crucial in Third Ward so they were surprised when a health clinic instead of retail opened on the first floor. (The clinic) is still paying rent even though they are not occupying the space."

Now, all eyes are on Midtown's future to see how they will move forward.

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