Laredo city officials have approved a draft plan outlining more than $5 million in federal funding for housing rehabilitation, homelessness services, rental aid, and affordable housing programs for the 2025-26 fiscal year. The plan is part of a broader multi-year strategy required by the U.S. Department of Housing and Urban Development.

Funding Plan Moves Forward

The draft passed without discussion or objections during a recent council meeting, with Councilmembers Vanessa Perez and Alyssa Cigarroa absent. The allocations are tied to the city’s 2025-26 One-Year Action Plan and 2025-29 Consolidated Plan, both mandated by HUD.

Federal Programs Involved

Three major federal programs will channel the funding: the Community Development Block Grant (CDBG), the HOME Investment Partnerships Program, and the Emergency Solutions Grant (ESG). Additional funds include money from the Housing Rehabilitation Revolving Loan Fund and anticipated program income.

Major Project Allocations

Key projects include $800,000 for Laredo’s Housing Rehabilitation Loan Program, $400,000 for Bethany House’s new resource center, and $300,000 for rental property rehabilitation. The Bethany House expansion will centralize critical services like case management, employment assistance, and housing navigation for vulnerable residents.

Support for the Elderly, Buyers

Additional HOME funds will support $365,000 in tenant-based rental assistance for elderly residents, $180,000 in down payment assistance, and $150,000 for an affordable rental housing initiative aimed at increasing low-income housing stock.

Homelessness Services Boosted

ESG funds will go toward emergency shelters, rapid rehousing, street outreach, and homelessness prevention programs. These efforts are designed to stabilize those at risk and expand available resources for unsheltered residents.

Community Consultation Process

The city consulted more than 20 local groups, including Bethany House, Catholic Charities, the Laredo Housing Authority, and Habitat for Humanity. Input came from stakeholder meetings, public surveys, and analysis from the Texas Balance of State Continuum of Care.

Progress and Future Goals

In the 2023 program year, 104 elderly renters received aid, 18 homes underwent rehabilitation, and two families received homebuyer assistance. City officials admitted falling short in some areas and pledged improvements. The public comment period runs through June 23, with final council approval expected July 21 before submission to HUD.