In January 2026, City Council voted 9-7 to spend $30 million from the Stormwater Fund on building demolitions — over the Controller's formal objection. Activist groups are preparing a legal challenge.
Contested & Likely Illegal
The key facts
9-7
Council vote. The BFA Budget Chair Sallie Alcorn voted NO.
$30M
Diverted from the Stormwater Fund to building demolitions
$166M
Stormwater Fund balance — record high, grown because the Jones/Watson lawsuit forced the City to stop diverting drainage money
$11.7M
Additional dangerous-building demolition embedded in the FY27 Stormwater Fund — making the diversion recurring, not one-time
What this means for your household
The Stormwater Fund grew because a court forced the City to stop diverting drainage money. The Mayor is now diverting it again — just to a different purpose.
If you live in a flood-prone neighborhood, this is the money that was supposed to fix your drainage. Northeast Action Collective and West Street Recovery are organizing the legal response.
The 9-7 vote tells you the legal question is genuinely uncertain — even the Council was divided. The BFA Budget Chair voted no.
Northeast Action Collective is proposing a $45M ditch reestablishment amendment to extend drainage funding to Sunnyside and the south side. That's an actual alternative use of the money.
“
If it's not illegal, it surely is immoral. Because we are flooding and we're suffering.
— Daena Jones, Northeast Action Collective (2026)
What you can do
1
Connect with Northeast Action Collective / West Street Recovery
Activist organizations actively organizing legal and policy challenges. They need volunteers, witnesses, and signers.
2
Document drainage in your neighborhood
Photograph ditches, blocked drains, standing water. Date everything. File 311 requests. This is evidence.
3
Track the FY27 Stormwater Fund line items
The $11.7M dangerous-building demolition is in the FY27 Stormwater Fund. Asking your council member to amend that out is a concrete vote you can request.
Sources: January 7, 2026 council vote record; Controller objection statement; Houston Press May 13; Public Works workshop May 13.