El Paso Housing Authority seeks exclusive tax-credit support from city

Private developers are calling the El Paso Housing Authority’s request for the city’s exclusive tax-credit support monopolistic. The Housing Authority is trying to raise private funds for public housing renovations.

Tax-credit applications with City Council backing get a distinct edge when seeking state approval. That would be big for the agency, which has seen funding cuts from the federal budget sequester. The authority wants to take on a 6,400-unit renovation at a cost of $500 million and needs permission to raise $300 million from private investors.

“All the money that we make — if you look at it ‘making it’ — goes back to the citizenry of El Paso,” said Housing Authority President Gerry Cichon.

The authority currently serves roughly 40,000 El Pasoans, but there are about 10,000 more on the waiting list. Cichon said the funding program won’t cost taxpayers a dime.

“When you look at interest rates, you look at borrowing, you’re looking at tax credits, we can’t even guarantee the federal government will have tax credits in the next couple years,” Cichon said. “We only have now.”

But private developers said exclusive tax-credit support may create a monopoly. They said free-market competition is the best way to ensure quality and affordability for the tenants. The Housing Authority already qualifies for more sources of funding than private developers.

“To the extent that I am going to have to show up at the table and compete with my government, they definitely shouldn’t have a competitive advantage over me as a private business person in this community,” said Tropicana Homes President Bobby Bowling.

A follow-up meeting will take place on Dec. 10, so Council can review more information and recommendations.