SUBJECT
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Public Hearing and Introductory Ordinance amending the City of Laredo Municipal Housing Fund FY2025-2026 annual budget by increasing revenues and expenditures in the amount of $50,000.00, related to the AEP Texas Targeted Low Income Program administered by Frontier Energy, Inc. The program will provide the replacement of central air conditioning and heating systems in Municipal Housing single-family homes to improve energy efficiency, housing quality and, improve resident quality of life.
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PREVIOUS COUNCIL ACTION
On 03/16/2026, City Council approved Resolution 2026-R-62, authorizing the City Manager to submit and accept a grant application to AEP Texas for the AEP TEXAS
TARGETED LOW-INCOME PROGRAM ADMINISTERED BY FRONTIER ENERGY, INC.
BACKGROUND
AEP Texas, through its consulting firm Frontier Energy, Inc., administers the AEP Texas Targeted Low- Income Program, which provides funding assistance for energy efficiency improvements benefiting qualifying residential properties including the replacement of complete central air conditioning and heating systems.
The Municipal Housing Division (MH) manages numerous single-family dwellings under the Noise Abatement Program, and Municipal Housing properties. Through prior participation in the program, MH has successfully completed HVAC replacement projects that improved energy efficiency and overall housing conditions at Noise Abatement and Municipal Housing properties
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Moderate
Supporting goal(s)/policy(ies):
“Promote the preservation and rehabilitation of existing housing stock to ensure safe and livable conditions for residents.”
Source: Viva Laredo City of Laredo Comprehensive Plan
Relevance: The replacement of central HVAC systems constitutes a clear rehabilitation activity that improves the safety, habitability, and overall condition of existing Municipal Housing units.
“Encourage programs that improve housing quality and energy efficiency, particularly for low- and moderate-income households.”
Source: Viva Laredo City of Laredo Comprehensive Plan
Relevance: The AEP Texas Targeted Low Income Program directly funds energy-efficient improvements for qualifying low-income households, aligning with the Plan’s emphasis on reducing energy burdens and improving housing conditions.
“Support initiatives that enhance quality of life through improved housing, infrastructure, and public services.”
Source: Viva Laredo City of Laredo Comprehensive Plan
Relevance: Upgrading HVAC systems improves indoor comfort, health outcomes, and overall living conditions, thereby enhancing residents’ quality of life.
Summary of alignment: The proposed ordinance to amend the Municipal Housing Fund budget to accommodate the AEP Texas Targeted Low Income Program demonstrates moderate alignment with the Viva Laredo Comprehensive Plan. The initiative advances key housing-related objectives by supporting rehabilitation of existing housing stock, improving energy efficiency, and enhancing living conditions for low- to moderate-income residents.
Although the action is primarily a funding adjustment tied to an external program, it substantively contributes to broader planning themes including housing quality, public health, equity, and sustainability. The classification as Moderate reflects that the agenda item aligns well with the Plan’s intent but does not directly implement a specifically cited, numbered policy or program outlined verbatim in the document
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of this Ordinance.
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Fiscal Impact
Fiscal Year: 2025-2026
Budgeted Y/N?: N
Source of Funds: AEP Texas, Frontier Energy
Account #: 555-3970
Change Order: Exceeds 25% Y/N: N
FINANCIAL IMPACT:
Revenues $50,000.00
Expenditures: $50,000.00