The San Antonio Housing Trust plans to renovate the Robert E. Lee Apartments, an aging building downtown.
Kin Man Hui/San Antonio Express-News
The City Council on Thursday agreed to let the owner of the Robert E. Lee Apartments off the hook for a 30-year-old loan the city provided for rehabilitating the onetime hotel.
The downtown property is set to undergo a major makeover.
Article continues below this ad
Council members — without any public comment — unanimously agreed to not only forgive the loan but also contribute $4.5 million to the San Antonio Housing Trust, the building’s new owner, for the $22 million project.
In 1995, the city used federal funds to give a zero-interest, $1.2 million loan to RELEE Partners LP to convert the building at 111 W. Travis St. from a hotel to apartments for low-income residents. The city bumped the amount to $1.7 million after the partnership asked for more money to help with renovations to the historic property.
RELEE, which is affiliated with Connecticut-based JHM Financial Group LLC, was supposed to pay back the loan by late 2016, but it never made a loan payment.Â
City staff said they asked the owners in 2015 to upgrade the deteriorating building but were told improvements weren’t financially feasible.
Article continues below this ad
The city then agreed to allow the unpaid loan to transfer to a new owner if RELEE sold the property, which it did in 2025 — to an arm of the housing trust. City staff also pushed the repayment deadline back to late 2026, when income restrictions limiting who can rent the apartments are set to expire.
The trust asked the city to forgive the loan and provide additional funds to make the project work financially, said executive director Pete Alanis.
The trust, a nonprofit that focuses on preserving and building affordable housing, bought the building in a public bidding process sparked by downtown developer Weston Urban’s offer to purchase it.Â
RELEE had to notify the state of Texas, which provided tax credits for the building, of Weston Urban’s offer and give tenants, nonprofits and other groups an opportunity to submit offers within 90 days of the state posting the building for sale. The housing trust and an affiliate of Chicago-based developer Celadon Partners submitted offers.
Article continues below this ad
Residents were concerned that if Weston Urban bought the 10-story building, the firm could convert it to market-rate housing they could not afford.
The trust is seeking to use tax credits, conventional loans and the city’s funds to renovate the circa-1923 building, which is in poor shape and not fully occupied. The city’s loan forgiveness is contingent on the trust lining up financing, which it’s looking to do by the end of the year.Â
It plans to upgrade apartments and reduce the number to 63 from 72 to make space for a new elevator, replace electrical and plumbing systems and add amenities. Thirteen of the apartments will be set aside for residents earning up to 30% of the median income in the area, with the rest for people making up to 60% of that threshold.Â
Construction could take 12 months to 18 months. Tenants will have the option to move back when the work is completed. The trust is helping them find alternative housing in the meantime.
Article continues below this ad
Representatives for RELEE didn’t respond to an inquiry this week about why the partnership didn’t repay the loan, and city staff didn’t answer a question about whether they had tried to collect payment.
City staff said they recommended council members forgive the loan because it will help preserve affordable housing at risk of being lost.
The city created the trust in 1988. Its affiliated entities partner with developers on mixed-income housing, issue bonds and build projects.
Article continues below this ad
The trust is governed by a 13-member board that includes five council members as well as city staff, businesspeople and school, labor and nonprofit leaders.