HOUSTON, Texas (KTRK) — The author of a new study on Houston’s Tax Increment Reinvestment Zones (TIRZs) hopes his research will spur reform.

John Diamond, director of the Center for Public Finance at Rice University’s Baker Institute, conducted research on the 28 TIRZs over the summer.

There are 28 TIRZs in the city of Houston. These are designated areas, many of which were created in the 1990s. At the time of their creation, the amount of property taxes paid to the city was frozen. Taxes may increase, but any additional funding collected beyond this set amount is returned to the area for reinvestment.

Council members are appointed by the mayor and oversee and designate funding without a public vote.

“It’s not very transparent and it’s not how city government should operate,” Diamond said.

After months of analyzing documents and figures, he said the zones were “absolutely not” working properly.

“It would be very difficult to say that,” Diamond said. “So if these are supposed to go to places that are underdeveloped or struggling or need help to start the development process, well, why are we doing it in Uptown? Why Memorial Park?”

The goal of the TIRZ is to take over a stagnant area of ​​the city and hopefully spur economic growth.

Projects often include building sidewalks, parks, road repairs or beautification.

Areas where property taxes have increased collect more money and have more money to pump into the area.

Diamond found in his research that the TIRZs with the highest spending are areas where the median income is much higher than the rest of the city.

Memorial Park is an example given by Diamond. The TIRZ Uptown was part of a recent project that included the construction of a land bridge.

“You built this great park and now everyone wants to live in this neighborhood,” Diamond said. “It’s driving up property values ​​in that area.”

Rising property values ​​mean higher property taxes and more money reinvested in the TIRZ.

Diamond said measuring the benefits of projects completed by TIRZ was one of the most difficult parts of the study. He said using the projects is not the only benefit. They also often increase property values, as in the case of Memorial Park.

Diamond pointed out that the deficit in city tax dollars has to be made up somewhere, so the tax burden may fall on areas outside of TIRZ.

“The city’s tax base is being cannibalized,” Diamond said.

Michael Moore, president of the Uptown TIRZ, told ABC13 the study only provides a single data point and does not give a complete picture of its benefits to the city.

“The Uptown TIRZ has provided more than $264 million for affordable housing projects citywide, contributing immensely to housing needs,” Moore said in a statement. “Additionally, it generates considerable hotel sales and occupancy taxes, supporting revenue for the city and other entities like the county, METRO and the state of Texas.”

Moore also said investments made in infrastructure have spurred billions of dollars in growth near Uptown.

TIRZ has been on Mayor John Whitmire’s radar since he took office. His office began an audit of the areas after three people associated with the Midtown TIRZ were accused of stealing or misusing millions of dollars and arrested over the summer.

For more on this story, follow Mycah Hatfield on Facebook, X And Instagram.