In forty years of service they helped approximately 4,000 families to fix or buy a home
By Roberto Hugo Gonzalez,
As originally published by Texas Border Business newsprint edition June 2016.
The McAllen Housing Services, Inc. was established in June of 1976 and years later changed its name to Affordable Homes of South Texas in order extend their services to anyone in the Valley. The history of this entity is exemplary, and the work that many private citizens have done to help others is admirable. Consequently, history is an extraordinary, interesting and valuable history of this city. Throughout the forty years of existence, many McAllen leaders have been very much a part of the efforts of helping people to live in better housing conditions.
Robert “Bobby” Calvillo, the current executive director, is the man who has kept the history alive for two decades. Next July 6, 2016, he will be celebrating his 20th anniversary with the not-for-profit entity.
In 1975, one year before Affordable Homes became a reality, the City of McAllen was featured in Newsweek, U.S. News and World Report, and the Los Angeles Times as the city with the worst substandard living conditions in America.
The publication portrayed the region as a third world state; this exacerbated the situation.
The city of McAllen Planning Department conducted a survey of housing conditions in the city and found out that over 1,700 homes lacked indoor plumbing, and about 1,300 homes needed substantial repairs. The report indicated that most of them were rental units with two or sometimes even three units on a 25-foot lot.
The findings of the survey didn’t settle well with city leaders because many of the families were living in deplorable conditions.
Calvillo has been part of this corporation for half of its existence and for that reason he knows most of the players. He said, “Back then, they agreed that private and public partnership had to be developed to address the issue of poor and substandard housing.”
He also pointed out that McAllen Housing Services, Inc. (MHSI) initiated services as a 501 (c)(3) nonprofit organization in 1976. The most important task of the newly organized entity was to raise $100,000 in private funding to create a revolving loan fund to make low-interest loans to McAllen homeowners in need to construct indoor plumbing and other repairs and upgrades to protect their homes.
For this effort, Arturo “Tito” Torres became the first president of the organization and was supported by a distinguished group of citizens as part of the board. Among them was Baldomero Vela, Mrs. Richard Crum, Reyes Guerra, Morgan Talbot, Lydia Moore, and David Farb.
When this reporter saw the name of Baldomero Vela, I decided to text Danny Vela owner of Lee’s Pharmacy and asked him if he was related to him. “Yes, he is my father. He is alive and well,” Danny responded.
Mr. Vela was part of the founding board, an entity that has brought happiness and a genuine feeling of accomplishment for almost 4,000 families. He is the father of Danny Vela, who currently is a McAllen ISD trustee, and of Veronica Vela Whitaker, McAllen City Commissioner.
The search for more information about other founders is an ongoing effort, in the meantime Founder Arturo “Tito” Torres, continues to be active in this community. The late David Farb was the owner of a single furniture store, Edelstein Furniture, better known as “La Muebleria de Jacobo” in McAllen. His furniture store served the market for more than 70 years.
Mr. Farb was known for his great heart, always ready to help. As a matter of fact, records show that he was the first to donate to the private fund.
According to Calvillo, when Mr. Farb learned about the situation and how many families were living in substandard conditions he called Michael “Mike” Blum at the time Assistant City Manager and pledged $2,000 to use towards improving these conditions.
According to records, this brought a quick response, where prominent community members including Arturo “Tito” Torres, Morgan Talbot, and David Farb began raising funds to address these issues and convinced the City of McAllen to match their fundraising goal of $100,000 if met. The group was able to raise $88,000 and the city of McAllen helped to secure an additional $100,000.
Mr. Farb’s son in law, Mike Braun joined the group and became president of the board in 1984-1986. He continues to be active.
Braun told Texas Border Business that Mr. Farb passed away on January 4, 1980. “He was a very, very young 58.” Braun said, “I have never worked with anyone who had such a wonderful gift for being able to organize people from highly diverse interests and at the end of the day, have them all pulling in the same direction.”
Braun, after so many years still misses him every day. “I loved to hear him laugh, almost like a school boy. David could walk into a room of hornets, and leave with a room of happy butterflies. He had the ability to acknowledge the person in front of him, and understand that person; he’d talk to them as if he had known them all of their lives.
Texas Border Business recognizes Mr. Farb’s call to action, he was the first one to write a check and challenged the city commission to get everyone started to find a way to fix the homes of many families. Braun said, “I will scour my files at home to try and cobble together the many civic interests of my father-in-law, whom I deemed one of the finest individuals on the planet and that is no exaggeration.”
Calvillo said that the effort to raise money was intensive, and Dr. Landrum-Chester was also among the many who donated to the cause. The board meeting to discuss further the strategic plan to raise funds took place at Wyatt’s Cafeteria on Pecan and north 10th street. Peter Piper Pizza now occupies the building.
Mike Blum corroborates the story saying that in fact in 1976 the City Planning Department conducted a city-wide housing study to determine the state of the housing stock. He stated that Ed Taylor, (still on staff, Craig Farmer and Blum were in charge of the study. “We learned what you have the details on,” he told Texas Border Business.
Blum said that once they finished the report and witnessed the conditions of housing in McAllen, they went to the Rotary Club and other clubs to talk about the severity of the situation. “We were promoting the idea of the City creating a Housing rehab program designed to provide funds to homeowners at a low interest. The actual idea was in the formative stage at the time.” Blum said, “David Farb, read about the problem in The Monitor, a story written by Virginia Armstrong. He was moved to call me to express his belief that the business community should raise funds to create a housing rehab program. Coincidentally, the idea of establishing a housing rehab program was already on the City Commission agenda for the following Monday. David showed up with a $2,000 check and challenged the Mayor and Commission to join in a campaign to raise $100,000. I understand they raised $88,000.” It is important to mention that at the time, Jack Whetsel was McAllen Mayor from 1969 to 1977. McAllen City Commissioner Barney Jackson accepted the role of chairperson of the finance committee.
According to Blum, the commission approved the idea of creating a housing rehab program and that lead to the formation of McAllen Housing Service Inc. Alfred W. Rogers became the first executive director, and over several years substandard housing units were brought to code.
Also, Blum said that Mayor Othal E. Brand, Sr. (Mayor from 1977-1997) and others thought the city could do even more, and the idea of McAllen Affordable Homes was created. “This entity went on to develop land and build new housing units for thousands of McAllen residents that would otherwise not be able to afford a new home,” Blum said.
“Today, that initial $188,000 is now a $50 million loan portfolio,” Calvillo said. He pointed out that the founder’s vision was to create a revolving credit system for residents that met the criteria to get financing for improvements to their homes.
The original idea was to help residents in need at the same time it would help others because by repaying their loan they also pay interest. “Even though it was not a high interest charge, it accumulates.” Calvillo Said, “That’s the neat thing about the concept, it is a hand-up, not a handout.”
He added that at the beginning, the idea was to lend the money so that people can fix their homes, plumbing and not to have dirt floors. But in 1988, a move initiated by Mayor Brand, a new organization named McAllen Affordable Homes, Inc. (MAHI) was created. “The focus was in developing new homes for McAllen Residents in partnership with the city of McAllen,” Calvillo said.
In 1988, MAHI built the first three bedrooms, one bath and cart port brick home for Pedro and Teresa Salazar at a cost of $16,000 and financed for 15 years at a 5% interest rate.
The following year, 1989, it was agreed the new organization should merge with McAllen Housing Services, Inc. (MHSI) and do both things, home rehabilitation, and building news homes.
Glen E. Roney, (Board President 1991-1993), Othal E. Brand and Mike Braun (Board President 1984-1986) headed the new corporate merger.
In January 2008, the organization changed its name to Affordable Homes of South Texas (AHSTI)
Fast forward to 2016; Calvillo tells people that they don’t do rocket science. “We are essentially a subdivision developer, a builder, and a mortgage company.” He said, “The difference is that we are exclusively servicing low-income families in our area.”
He told Texas Border Business, “We are not reinventing how to build a house or build it upside down or sideways. A house is a house. A loan is a loan.” Calvillo said, “The difference is that we’ve got 65 employees that love what they do, they come to work every day with a smile on their face and ready to serve.”
How did the new Mayor Jim Darling impact this organization? “I think the mayor’s impact is not even measurable. When I started almost 20 years ago, he was already doing so many things for us that I can’t even describe it but primarily his official role was our legal counsel.”
Calvillo said that at the time Mayor Darling was a city employee, and he asked for permission to be able to do home closings.
At that point, Darling stated that he would prefer for clients to use the money to pay their homes. “Since at least 20 years ago, Mayor Darling was doing all the legal work for us free of charge,” Calvillo said.
Also, he said, Darling became the largest donor to this organization, because when an attorney closes a mortgage, and they get title insurance, the title company pays the closing attorney a fee. Darling at the time would get that fee from the title company payable to his law firm, and what he would do is endorse the check back to the organization. “He was contributing with his professional skills, and also providing us financial support. Nobody else would have done that,” Calvillo said.
Calvillo said that the founders and the board presidents had done a fabulous job. However, he also wants to recognize the volunteers that they have had, and they have been many.
Before him, three individuals served as executive directors during the previous 20 years. “They did a fantastic job of thinking outside the box.” Calvillo said, “They also deserve recognition.” The three former executive directors were; the late Al Rogers, (1976-1980); the late William L. “Doc” Moore (1980 to 1992); and after during a small gap, Chris Voss served as interim director, and Marc Riggs (1992-1996). Calvillo said that these three individuals would do anything to help families in our area.
June is an important month for Affordable Homes of South Texas, Inc. and the surrounding cities blessed by Affordable Homes of South Texas, Inc. (AHST). They are celebrating 40 years of existence, and all the participants deserve recognition for a job extremely well done. TBB
