Study finds shortage of Houston housing for poorest evacuees

Associated Press

HOUSTON - A new study is raising concern that thousands of the poorest hurricane evacuees living in Houston could end up homeless when assistance runs out in the coming year.

The study commissioned by the Texas Department of Housing and Community Affairs found a shortage of almost 14,000 rental apartments affordable to the largest group of Hurricane Katrina and Rita evacuees. The income category is made up of families of five earning up to $26,360.

"The worst-case scenario would be a deluge of individuals heading toward services or headed for the streets," said Anthony Love, chief executive officer of the Coalition for the Homeless of Houston-Harris County.

He said it's hard to predict how many evacuees will become homeless, but agency leaders are discussing how to meet the additional demand.

City vouchers now cover rent for close to 35,000 hurricane evacuees. The vouchers will expire in September or October, although they could dry up sooner for the 6,700 evacuees who signed six-month leases.

Some evacuees will qualify for the Federal Emergency Management Agency's individual assistance program, which will provide cash payments that the tenants can use to pay their rent. That assistance will end next spring.

Evacuee Kemberly Samuels, 52, said she's reviewed Houston apartment listings and doesn't feel she can afford one on her own. She worked for the New Orleans public school system but can't find a job in Houston.

"I have no idea what I'm going to do," she said. "A lot of people are saying that they're just going to be homeless."

Alternatives to the city and federal assistance are limited. The waiting list for public housing in Houston already numbers more than 16,000 people. The list for federal Section 8 subsidized housing vouchers has been closed since 2001.

The state study found a surplus of 2,685 apartments that could be afforded by families earning from $27,000 to $40,000 annually - the income range primarily served by the federal Low-Income Housing Tax Credit program.

The government recently authorized $3.5 million more for the tax credit program to assist low-income housing development for evacuees in Texas. Under the program, states award tax credits to low-income housing developers, who sell them to investors to help pay for new building.

But some housing advocates said the study shows the program does not apply to the greatest need - the lower-income families displaced by the hurricanes.

In a newsletter, the Texas Low Income Housing Information Service calls for the tax credit formula to be expanded so that it would encourage the development of housing for the very poor.

State housing agency spokesman Michael Lyttle said the study was ordered to check the accuracy of market studies submitted by developers to support their applications for tax credits to develop low-income housing.

Houston housing market starts off with a bang

Allison Wollam
Houston Business Journal

The Houston real estate market experienced continued strength as 2006 began with the highest sales on record for the month of January.

Many other parts of the country have seen weakness at the beginning of the year, but the Houston housing market is as strong as ever, with monthly records for sales, volume and prices, according to statistics released by the Houston Association of Realtors Multiple Listing Service.

Total property sales for the month totaled 4,584, which was a 16.4 percent increase over January 2005.

Properties sold during the month reached a total of nearly $775 million, an 18.6 percent increase compared to last year's more than $650 million in January sales.

The median home price for a single-family home reached $138,110, and the average price rose to $179,160, both increases from last year of 4.4 percent.

Additionally, total sales for single-family homes in Houston increased by 13.2 percent to 3,641 in January, up from last year's 3,217.

"The greater Houston housing market should never be underestimated, as real estate has been one of the reliable backbones for the local economy for quite some time," says Lorraine Abercrombie, chair of HAR. "Signs are already surfacing that indicate 2006 will be another banner year for the real estate market in the region."

Month-end pending sales of properties reached 4,349, which was up 19.3 percent from last year, and already signals a stronger February 2006, compared to 4,078 properties sold in February 2005.

Houston's current median price of $138,110 is 34 percent less than the national median price, which reached $209,300 in December, according to statistics from the National Association of Realtors.