SAN ANTONIO | Urban Core Development Thread

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Cattleman Square Lofts project dead after financing issues

The San Antonio Housing trust wants to build a taller structure than was previously planned.

By James McCandless – Reporter, San Antonio Business Journal
May 21, 2024

After years of planning, an affordable housing project in the downtown area has been scrapped.

The San Antonio Housing Trust is planning on acquiring the property at 811 W. Houston St., a parcel that a local nonprofit had been eyeing for the Cattleman Square Lofts affordable housing development, for $3,335,000. Alamo Community Group currently owns the land and, up until recently, had been seeking financing to start the build.

SAHT Executive Director Pete Alanis told the Westside Tax Increment Reinvestment Zone board Monday that the team was "two weeks away" from closing on financing before the deal unraveled. With no other prospective funder coming forward, SAHT is stepping in to secure the land for another affordable project. Land banking the tract for a future development, the organization plans to use about $2.53 million from the TIRZ and other city funds previously earmarked for the project.

"When this opportunity came up, the concept of preserving affordability near transit is something that we desperately need," he said to the board. "So we didn't want the property to fall into the hands of a market rate developer."

The development would have added 138 affordable housing units to the Cattleman Square Historic District with an expected price tag of about $36.4 million, according to a 2023 underwriting report from the Texas Department of Housing and Community Affairs. The project had won $38 million in state low-income housing tax credits, which will revert back to the state. There are no immediate plans to develop the site.

Alanis told the Business Journal that the Housing Trust will begin a community engagement effort after closing on the site. He says that while no replacement plans have been drawn up yet, he thinks this is an opportunity to come forward with a structure taller than Cattleman Square Lofts that can put as many people as possible close to public transit.

"I think what we have to do looking forward is look for an option for higher density," he said. "We want to make sure we're taking advantage of the fact that it's across the street from one of the major transit centers in our community. So we want to be able to provide as many units as possible, giving access to as many families as possible to (VIA) Centro Plaza."

He added that the organization is looking for land banking opportunities around the city, pointing out recent activity on the South Side and Midtown. He said the group hopes to close on land for six projects over the summer.

Despite the current economic challenges hampering affordable development, Alanis said SAHT is sticking to its mission to try and meet demand.

"I think it's important that we keep the foot on the pedal with respect to meeting the demand needs of our community," he said. "Even though we have a dip in absorption, that dip is probably going to be temporary. We're looking at about a year/year and a half dip in absorption, but those units are going to be absorbed."

Both the San Antonio City Council's Planning and Community Development Committee and the Westside TIRZ board approved SAHT's request. The measure has to be approved by City Council, followed by a 60-day feasibility review and a 60-day closing period.

Alamo Community Group Executive Director Christine Drennon declined to comment for this story.