Houston Public Works will be allowed to use $30 million from the city's Storm Water Fund to demolish dilapidated buildings after Houston City Council decided in a 9-7 vote on Jan. 7.
Council members Abbie Kamin, Sallie Alcorn, Tiffany Thomas, Edward Pollard, Julian Ramirez, Mario Castillo and newcomer Alejandra Salinas voted against the motion, many of whom cited concerns that building demolition does not fall under the scope of the Storm Water Fund, which is dedicated to drainage maintenance and operations. Council member Tarsha Jackson was absent.
What you need to know
Council's approval, which authorizes Houston Public Works to execute contracts with Storm Water Fund dollars, came after a lengthy debate about the legality of using the money for demolition projects. Several council members and Controller Chris Hollins said the contracts are an improper use of the fund.
However, many council members and Mayor John Whitmire agreed dilapidated buildings pose a risk to drainage quality, as they attract illegal dumping of debris that can cause clogs.
City attorney Arturo Michel said during the Jan. 7 meeting he's confident the spending authorization would be considered legal by a court. Hollins remained adamant throughout the meeting that the proposed expenditures cross the boundaries of the Storm Water Fund's purpose.
Houston Public Works officials said Jan. 6 the funding will only go toward buildings that threaten drainage, which inspectors will determine on a case-by-case basis.
Posted Jan. 6
In an upcoming Jan. 7 meeting, Houston City Council will revisit a decision to use Storm Water Fund dollars for building demolition projects, a proposal that sparked concern from several council members in December.
The contract authorization would not take money away from other Houston Public Works projects, such as roadside ditch and storm sewer improvements, HPW officials said during a Jan. 6 Budget and Fiscal Affairs Committee meeting.
What’s happening?
Houston Public Works is seeking City Council approval to use a maximum of $30 million from the city’s Storm Water Fund to tear down dilapidated buildings that pose a risk to local drainage systems, according to Jan. 7 agenda documents.
The item appeared before City Council Dec. 17, but council postponed its decision to allow for further clarification on whether Storm Water Fund money could be used for building demolition, Community Impact previously reported.
HPW Director Randall Macchi told the BFA Committee on Jan. 6 that the public works department has historically used money from the fund to demolish dilapidated buildings, but 2026 marks the first year the allocations are reflected in the fund's budget.
When asked how many times the fund had been used for demolition projects in the past, Macchi told the committee the number of buildings is “difficult to quantify.” He said the $30 million spending authority would allow for better tracking of those transactions.
“We want to dedicate this here now, and everyone knows where it’s coming from, and we don’t track that,” Macchi said. “It’s not that we did it wrong or improperly, it’s just that we could have been more upfront with how those things had taken place.”
Some context
The Storm Water Fund was established in the early 1990s to support storm sewer and drainage system operations citywide, according to a Jan. 6 presentation from HPW officials. A majority of the fund’s revenue comes from Houston's utility service, HPW Chief Financial Officer Samir Solanki told the committee.
Solanki said the fund primarily operates as a pass-through account, meaning money is moved from one entity to another for specific purposes. According to an overview of past expenses, HPW uses the fund for:
- Closed drainage system maintenance, such as sewers
- Open drainage system maintenance, such as ditches and basins
- Vegetation management and mowing
- Stormwater quality and enforcement
- Demolition and nuisance operations
A closer look
The Storm Water Fund budget for fiscal year 2026 already includes $25 million for building inspections and demolitions. However, City Council must authorize the $30 million in spending before Houston Public Works can enter into agreements with third-party contractors.
“We don’t lose our right to scrutinize spending when items come before us in this matter just because we passed the budget book,” council member Sallie Alcorn, chair of the BFA Committee, said during the meeting.
Macchi said the public works department has a list of more than 2,000 buildings in need of demolition, but not all of those will qualify for contracts paid for by the Storm Water Fund.
Stay tuned
City Council is expected to vote on the item during its Jan. 7 regular meeting.
Community Impact will update this story after the Jan. 7 City Council vote.
