San Antonio Tightens Rules on Development Projects to Prevent Displacement

San Antonio City Council has unanimously approved new rules aimed at preventing the displacement of residents due to tax increment financing (TIF) funded development projects. The changes come after controversy surrounding the demolition of the Soap Factory Apartments to create way for a mixed-use district surrounding a new Missions ballpark.

New Displacement Impact Assessments Required

The updated rules require all construction projects funded through TIF – including those for the new Missions ballpark and the arena for the San Antonio Spurs – to undergo a displacement impact assessment. Previously, these assessments were only required for housing projects. The new policy expands the scope to include a broader range of projects and allows for scrutiny to begin up to two years before a TIF application is submitted, as well as for future additions to a project. The assessment area will encompass at least a quarter-mile radius around any proposed project.

Addressing Concerns from the Soap Factory Demolition

The policy changes were spearheaded by District 4 Councilman Edward Mungia, following concerns raised about the demolition of the Soap Factory Apartments. While city officials initially stated the ballpark project itself did not directly displace residents, Mungia argued that the broader development plan encompassing the project did contribute to displacement. “We’re splitting hairs with that,” Mungia said. “I understand that the actual physical project didn’t displace [anyone], but the plan that encompasses it did.”

The Soap Factory Rehousing Effort

The Soap Factory Apartments, a 381-unit complex purchased by Weston Urban in 2023, housed some of the last remaining affordable housing options in downtown San Antonio. Rents averaged $700 for studios and $1,300 for two-bedroom apartments. Weston Urban committed to rehousing all residents and allocated $500,000, along with the city, for relocation assistance.

As of Friday, city officials reported that over 75% of the affected households had either been moved into later construction phases or rehoused entirely. Weston Urban worked with the nonprofit Building Better Communities to provide wraparound services, including assistance with finding new housing, transportation, and job searching. Residents current on rent received $2,500 in relocation assistance, while those behind on rent did not qualify.

However, the rehousing process wasn’t without challenges. Some residents, like Philip Adcock, were unable to find stable housing in San Antonio and moved to Los Angeles. Others, like Luis Alvarado, experienced job loss and fell behind on rent, disqualifying them from assistance. Communication with residents was also identified as an area for improvement.

Future Development and Ongoing Concerns

Weston Urban plans to build a 160-key hotel and two residential towers with nearly 700 housing units near the new ballpark, which is slated to open in April 2028. The ballpark itself will cost $160 million, with $34 million coming from the Missions’ ownership group and $126 million from the Houston Street TIRZ. The city and Weston Urban committed $500,000 to aid relocate residents.

Despite the new policy, concerns remain about the availability of affordable housing in San Antonio. Councilman Mungia emphasized the need to address the lack of affordable units for residents earning below 60% of the area median income. The new rules aim to provide city staff with clearer direction for evaluating projects and preventing displacement in the future.