Worried about small businesses, Fort Worth cuts COVID housing plan to $10 million
The city will contract with Fort Worth Housing Solutions to convert hotels into 100 supportive housing units using about $9.3 million in federal coronavirus relief, cutting the original plan in half based on concerns the city has not used enough of its CARES Act allocation to boost small businesses.
City staff in the homeless outreach division, Directions Home, had identified $18.6 million from the city’s $158 million aid package to use for buying up to three hotels to convert into apartments for those facing chronic homelessness who may be more susceptible to the coronavirus because of medical conditions or age.
Most council members during Tuesday’s work session voiced nervousness that the full amount could not be spent before a December deadline set by Congress. There was also a prevailing feeling the city should devote more money to small business assistance. The city has already set aside $15 million for small business grants and more than $7 million for a separate housing assistance program. A little more than $6 million has been allocated to businesses, Assistant City Manager Fernando Costa said, and less than $1 million has gone out in housing help.
Fort Worth Mayor Betsy Price said helping small businesses was paramount. Helping businesses stay open or reopen would put people to work and boost the economy.
“Heaven help us we need permanent supportive housing for our homeless population, we really do,” Price said. “But we have so many families, and so many businesses hurting with COVID right now.”
Price said it would be unfair to compare the number of small businesses helped with the long-term benefits of supportive housing. Those businesses represented thousands of jobs and families, she said.
Unlike a typical shelter, permanent supportive housing provides long-term housing for those who need additional care, such as medical treatment, counseling or rehab. The 100 units will be specifically for those who have been homeless for a year or more and are especially at risk to coronavirus because of their conditions. Most will be over 65 years old.
Locations must be determined by Friday to apply for the necessary zoning changes. Once those are approved next month, Fort Worth Housing Solutions will have until December to remodel and lease out the units.
Fort Worth Housing Solutions was considering at least two hotel locations, Costa said. The reduction would likely mean only one hotel would be purchased. As much as $16 million would be needed to acquire both sites, he said.
Councilwoman Ann Zadeh said she wanted the city to allocate as much as possible to housing. She repeatedly said she was disappointed the allotment wasn’t higher, but she wouldn’t vote against it.
Wanda McKinney, calling in to the council meeting, said she thought the decision to cut the budget and number of units in half was “shameful.”
“We cannot continue to disregard the disenfranchised and marginalized citizens of our city,” she said.
