SUBJECT
title
An ordinance authorizing the City Manager to amend the City of Laredo Municipal Housing Fund FY 2025-2026 Annual Budget by increasing revenues and expenditures in the amount of $62,100, establishing the rental rates and tenant policies for the Lafayette Tiny Homes Rental Housing Project located at 3602 Eagle Pass, and amending the Full Time Equivalent (FTE) position listing by adding one (1) Administrative Assistant, grade 205 and one (1) Building Maintenance Mechanic, grade 204. These rental units must serve individuals who are low-income, experiencing homelessness, or at risk of becoming homeless, and must offer affordable rents in accordance with HOME-ARP and HOME program regulations.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies):
Goal 7.8 - Improve access to medical care and housing.
(Viva Laredo Comprehensive Plan, p. 7.27)
“Distribute primary care offices, clinics, and laboratories, amongst the various districts and neighborhoods that make up the city.”
“Collaborate with private, non-profit, and other governmental entities to establish and implement a method for recruiting and retaining medical providers.”
(This goal is broader, but it includes an explicit emphasis on improving equitable access to services, including housing stability as a determinant of health.)
Policy 7.8.3 - Support programs that provide affordable housing options for low-income residents.
(Viva Laredo Comprehensive Plan, p. 7.28)
“Develop, support, and expand programs to increase the availability of affordable housing for low- and moderate-income households.”
Policy 7.8.5 - Address homelessness through supportive housing initiatives.
(Viva Laredo Comprehensive Plan, p. 7.28)
“Collaborate with local organizations to reduce homelessness by increasing access to supportive and transitional housing options.”
Summary of alignment:
This ordinance aligns strongly with the Viva Laredo Comprehensive Plan because it directly advances the City’s stated housing and equity goals. The Lafayette Tiny Homes Rental Housing Project explicitly serves low-income individuals, those experiencing homelessness, or those at risk of becoming homeless, which fulfills Policy 7.8.3 by expanding affordable housing options and Policy 7.8.5 by providing supportive housing solutions.
Additionally, the establishment of rental rates and tenant policies ensures compliance with federal HOME-ARP affordability requirements, reinforcing the Plan’s call for sustainable, long-term housing access for vulnerable populations. The addition of administrative and maintenance staff strengthens the City’s capacity to manage municipal housing effectively, aligning with broader themes of equity, public health, and social stability.
This agenda item demonstrates direct fulfillment of key goals and policies, making the alignment Strong.
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PREVIOUS COUNCIL ACTION
On 10/6/2025, City Council introduced a Public Hearing and Introductory Ordinance authorizing the amendment of FY 2025-2026 Laredo Municipal Housing Fund and establishing the rental rates and tenant policies for the Lafayette Tiny Homes Rental Housing Project.
On 08/05/2024, City Council approved the award of construction contract to the lowest bidder Zertuche Construction Texas, LLC, in the amount of $1,467,410.00.
BACKGROUND
The construction of nine (9) tiny homes and one (1) community room was funded by the HOME American Rescue Plan Program (HOME ARP) and the HOME Investment Partnerships Program (HOME) through the U.S. Department of Housing and Urban Development and built on a City owned property. As such, the rental of these units must benefit individuals who are low income, homeless, or at risk of homelessness, and provide affordable rents in compliance with HOME ARP and HOME program rules and regulations.
The proposed initial rent per month is $575 per tiny home. The rent amount for these units include water and electrical services. The rental rates are subject to change, as HOME program rents are set annually by the U.S. Department of Housing and Urban Development.
Based on the great need that exists in the community to provide affordable housing to individuals in the City of Laredo, it is proposed that occupancy of the units be limited to individuals/households with incomes as set annually by HUD.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
For Ordinance to be approved.
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Fiscal Impact
Fiscal Year: 2025-2026
Budgeted Y/N?: No
Source of Funds: Rental Income
Account #: 555
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Funds to be appropriated as follows:
Annual Amended
Line Item Name Appropriation Amendment Budget
Revenues:
Lafayette Tiny Homes 0 $62,100 $62,100
Expenses:
Lafayette Tiny Homes 0 $62,100 $62,100