Federal Dollars to Aid El Paso’s Affordable Housing Shortage: A Possible Solution

The topic of affordable housing has become a critical concern in El Paso, Texas, where the combination of escalating house prices, limited income opportunities, and inadequate federal and state support is leading to a dire situation for many of its residents.

The story begins with the struggle of Paul Lopez, a disabled Gulf War veteran who, after fleeing an abusive relationship in Illinois and facing a terminal cancer diagnosis, found himself homeless in El Paso. The warm Texas climate was preferable to freezing Illinois for Lopez, but it wasn’t until after months of living in shelters or on the streets that he finally found a single room for rent at $550 per month. Lopez’s ability to pay rent is dependent on the disability money he receives through the VA. However, he is perpetually one missed check away from losing everything once again.

In a city with around 677,000 residents and an alarming 18.3% poverty rate, the affordable housing crisis in El Paso has reached an alarming stage. As Abraham Gutierrez, the assistant director with the Department of Community and Human Development in El Paso, points out, over 81,000 El Paso County households were considered “asset limited, income constrained, employed” in 2021, meaning they were working full-time but living just slightly above the federal poverty level.

Adding to the urgency of the situation, the average cost of a home in El Paso has increased by 61% since 2014. The concept of housing being affordable is intricately tied to individuals having enough money after paying housing costs to afford essential expenses like food, transportation, child care, and health care. Researchers at the University of Texas at Austin have highlighted this fact in briefings submitted to the Texas Legislature.

Some relief may be in sight, though. El Paso is slated to receive millions of federal dollars this year as part of President Joe Biden’s 2022 promise to increase affordable housing availability nationwide over five years. Texas itself is promised $148.2 million to be distributed among various cities and counties.

El Paso’s Housing Opportunity Management Enterprises (HOME), a significant public housing authority in the U.S., assists more than 52,000 residents. While its annual budget is a robust $91 million, funding has declined over recent years. National cuts to the budget for the Department of Housing and Urban Development (HUD) have trickled down to individual housing departments, leaving states like Texas ranking low in spending on affordable housing. As Gutierrez lamentably states, “The HUD entitlements have been slashed and cut significantly… we’re dealing with a very dire situation.”

Despite the grim situation, the city has $11.37 million in grants to spend on social programs for improving the lives of low-income Americans, and $15 million in accrued HUD HOME Investment Partnership Program funds, intended for specific high-ticket projects. The flexibility in proposals for these projects and the intentional lack of restrictions indicate a willingness to explore diverse solutions.

The city has already made significant investments in affordable housing projects, benefiting El Paso communities. Yet, as Gutierrez warns, current inflation, housing affordability issues, and the sheer necessity for more housing create a pressing demand for creative and intentional efforts.

Academic perspectives weigh in on this issue too. Jake Wegmann, a professor at UT-Austin, acknowledges that affordable housing has always been a concern in Texas, but now even middle-income people are struggling to find suitable homes. Wegmann likens the situation to trying to fill a bathtub with a cup while the drain remains open. He calls for a combination of money and policy changes to genuinely address the crisis.

The city’s plan includes investing in new affordable housing and rehabilitating vacant, older homes in the city’s center. Even federal programs like the first-time homebuyer program, currently misaligned with housing prices, must be reassessed to meet the needs of today’s market.

The issue is complicated, and as Gutierrez emphasizes, El Paso’s leadership must be specific and intentional with its limited resources. Even Paul Lopez, the veteran who inspired this narrative, remains skeptical of the city’s intentions and ability to create more affordable housing options. The crisis is real, and the path to alleviating it is fraught with challenges, but the combined efforts of federal, state, and local authorities, along with innovative approaches, may hold the key to unlocking a brighter housing future for El Paso.