Marfa
The private financing corporation arm of the Marfa Housing Authority (MHA) recently purchased commercial land in Marfa and raised the rents for the tenants—Angel’s Restaurant, and J&J Auto, a mechanic shop—which led to the auto shop’s closure and the restaurant owner uncertain about her future.
Marfa Property Management (MPM)—the private financing corporation—was created for more flexibility for the MHA in investments and property development for affordable housing, and it is governed by the same appointed board: Isabel Cash (chair), Anna Catano (vice chair), David Walstrom, Patrick Chavira and Jennifer Hebert. The board voted recently to purchase the property at 205 N. Spring Street, adjacent to the Dollar General store. After the purchase, MPM raised the rents on both tenants from $1,400 to $1,800.
“There are rumors, and people keep coming to me and they’re saying, I heard a rumor that you’re leaving or you’re moving out,” said Angel Silva, who runs the restaurant, which serves Mexican and Tex-Mex fare, with her husband, Daniel. “I’m not moving out. I don’t have anywhere else to go.” The couple opened the restaurant in January 2023.
Silva said the only thing she can think of to do to keep the business afloat is increase prices. “The rent is going up, which could possibly push me to have to raise my prices because I don’t have a choice,” she said. “We try to keep our prices the lowest we can for our locals because we like to see the locals every day.”
The tenant who ran the auto shop, Jose with J&J Auto, did not respond to requests for comment. However, the previous property owner who leased to him, Jose Martin Gutierrez, said the higher rent was a key reason for the tenant leaving the space and the business.
Chavira, who did not want to comment publicly on the matter, did confirm he was the only board member voting against the purchase. It’s unclear who voted for it or who may have been absent, since the minutes for the meeting have not been approved and were not released by MPM.
Jesse Williams, MHA and MPM executive director, said there are no current plans for affordable housing at the site, and the purchase was an investment to generate revenue for the authority.
“Every move we make is to further our goals of not only providing affordable housing, but to ultimately increase it,” Williams said. “We are completely on our own when it comes to getting enough money to accomplish these goals for Marfa. We have never received a single donation nor was one ever offered. Money has never and will never simply fall into our laps. So it is up to us to make the right moves in order to generate more money in order to accomplish these goals and to bring more affordable housing units to the residents of Marfa.”
Williams said that the MPM paid cash for the property, although he refused to disclose the purchase price. Sources close to the sale, who did not want to be named publicly, said the price was between $375,000 and $400,000.
Williams said MPM will be able to generate new revenue off the deal, which will be used to bolster their affordable housing initiatives and maintain their current apartments. The MHA provides affordable housing subsidized by Section 8 HUD vouchers that pay a portion of rents depending on the financial situation of the tenant, along with regular unsubsidized apartments in the block surrounding the MHA building at 510 S. Kelly. The entities have 74 apartment units, three cabins intended for police officers and teachers, and one cabin intended to be a short-term rental to generate income.
Williams said he still considers the rents on the commercial properties to be “affordable” and that the investment was solid. Plans for the auto shop space will be discussed by the board, he added, but there are no concrete plans for the use of the space, which includes a large metal building.
Williams also dispelled another incorrect detail of the sale—that the realtor handling the transaction was related to a MPM board member, which is not the case, he said.
Board Members Cash and Catano did not respond to requests for comment. Chavira, Walstrom and Hebert did not want to comment.