T
he Texas Department of Housing and Community Affairs has redirected $20 million in affordable housing credits away from San Antonio after the City Council failed to approve zoning for a proposed apartment complex. The decision follows the council's rejection of a Miami-based developer's request to build an 85-unit affordable housing project on the Northeast Side, which required a supermajority vote due to neighborhood opposition.

    Council members who opposed the project cited concerns about traffic, crime, and density. Mayor Ron Nirenberg had warned that rejecting the project could result in losing the credits, but Councilman Marc Whyte assured that they would be allocated to another San Antonio project. However, the agency denied a subsequent proposal from Dallas-based Rise Residential due to financial feasibility issues.

    The outcome has been described as an "embarrassment" for the city by Nirenberg, who stated that some council members' assurances about securing state support were unfounded. Despite this setback, other affordable housing developments are underway on the East and South sides of San Antonio, including a 530-unit multifamily project on the South Side and Lennar's Elm Trails tiny-home project, which has sold over 50% of its units priced around $150,000.