Developer acquires Jean Lafitte Hotel

GALVESTON — A Port Arthur developer has acquired the historic Jean Lafitte Hotel in downtown Galveston with plans to rehabilitate the rundown 83-year-old building into a mixed-income apartment complex.

Itex Property Management closed on the deal June 15.

As The Daily News reported Dec. 22, the developer will use federal disaster recovery money to transform the historic hotel at 2101 Church St. into a complex where half the units are set aside for low- and moderate-income tenants. The building has been vacant for two decades, Chris Akbari, vice president of the management company, has said.

Akbari said in December the company plans to transform the building into an apartment complex with 83 units on the top nine floors and space for a retail shop on the ground floor while preserving the historic characteristics of the old hotel built in 1927. Akbari could not be reached for comment Tuesday.

As part of the agreement to accept federal disaster recovery money, the developer will set aside 55 percent, 46 units, for people earning 80 percent or less of the area median income.

To qualify for the affordable units, a single person could earn no more than $35,750 a year, while a family of four could earn no more than $51,050 a year, according to the Texas Department of Housing and Community Affairs, one of two state agencies charged with administering federal disaster recovery dollars.

There would be no income restrictions on the remaining 37 apartments.

The rent for apartments set aside for affordable housing will be capped at $714 for a one-bedroom and $866 for a two-bedroom, according to state rules.