Houston Real Estate Council (HREC): How and Why It Came to Be
Houston is known worldwide as being “open for business.” We boast a booming economy, thriving commercial and residential development and world class health care, fine arts and education. As more Americans flock to Houston for opportunity and the City continues to grow, so too do discussions, debates and negotiations around the development regulations directly impacting our industry. That is why HREC’s role is more critical than ever.
HREC was born out of the City’s third attempt to enact zoning laws in the early 1990s. Prior to the failed 1993 zoning referendum, leaders in office, retail, industrial, multi-family and single-family development were tapped to serve on the Planning Department’s technical advisory committees (TACs) meant to review and provide input into the City’s proposed draft zoning ordinance. Thanks to close relationships among members of different TACs, it became clear there was confusion and misinformation between the Planning Department and the TACs about where industry leaders stood on certain provisions of the ordinance with major negative impact to our industry.
David Hightower, now Executive Vice President at Midway, convened key members from each TAC and two members of the Planning and Zoning Commission (created by the City to spearhead crafting the zoning ordinance along with the Planning Department). After an hour of comparing TAC experiences, the group concluded that the TACs were not well-served by the Planning Department’s siloed process structure, as evidenced by the department’s refined draft ordinance that lacked critical industry input.
Although we didn’t know it at the time, this was the first meeting of HREC representing the five primary real estate product types. We decided the group would be limited to owners and developers of real property and communicated to the Planning Department that we would henceforth work as a single industry representative group. Our membership criteria meant our members are the ones making the capital investments and paying taxes. It also removes potential internal conflict with industry service providers, which positively impacted our dynamic with the Planning Department.
HREC overhauled the draft zoning ordinance, creating a detailed document truly unique to Houston. We selected a committee to meet regularly and confidentially with representatives of the Greater Houston Association of HOAs and work through zoning issues to ultimately produce a document both groups supported but that HREC did not publicly endorse.
As we know, no zoning referendum passed, and Houston still does not have formal zoning. However, HREC members agreed we needed to remain vigilant and stay organized. While the power to formally zone was defeated for the foreseeable future, there are always bureaucrats and activists lobbying to enact more regulations that impact development and land use. It wasn’t long before HREC was back at the table negotiating proposed ordinances and changes to the development regulations in the City’s Code of Ordinances. From tree and landscaping to parking and signage, the list of ordinances is long and continues to grow.
Today, HREC is deeply involved in a wide range of issues across Houston, Harris County and Texas that impact real estate owners and developers. As established, respected and connected members of the development community, HREC advocates for our members’ legislative and regulatory interests by working closely with every level of state, county and city government to influence and resolve real estate issues as well as shape the direction of development policies and processes.
If you are a real estate owner or developer, we hope you will consider joining us.
