By JACQI LEYVA-HILL
Special to the NEWS
The historic Stonewall Jackson Hotel could soon begin a new chapter as the San Benito Housing Authority, in collaboration with the nonprofit Come Dream Come Build and preservation consultant Post Oak Preservation Solutions, works to preserve one of the city’s best-known landmarks while expanding housing opportunities and supporting downtown revitalization.
Built in 1927, the three-story Stonewall Jackson Hotel quickly became one of South Texas’ premier hotels and served as a gathering place for community events, civic organizations, business meetings, and travelers for decades.
Although the building has been vacant for years, it remains one of San Benito’s most recognizable historic landmarks.
Now, through its nonprofit affiliate, the San Benito Housing Development Corporation, the San Benito Housing Authority is pursuing a comprehensive rehabilitation of the property and seeking listing on the National Register of Historic Places.
The hotel is already recognized as a Recorded Texas Historic Landmark, a designation that acknowledges its architectural and historical significance.
“The San Benito Housing Authority is committed to finding innovative ways to expand housing opportunities while strengthening our community,” San Benito Housing Authority President and Executive Director Maricela Aguilar said in responses provided by Communications and Compliance Officer Hilary Aguilar. “We saw an opportunity to do much more than restore a historic building—we saw an opportunity to help address a growing housing need while supporting the City’s vision for downtown revitalization.”
Aguilar said residents have consistently shared memories of the hotel’s restaurant, community events, and its role as the social center of downtown San Benito. That community feedback helped shape the vision for restoring the building and adapting it to meet today’s housing and community needs.
Current plans call for converting the hotel’s second and third floors into affordable housing for San Benito residents.
While the exact number of units has not yet been determined, Aguilar said the project aims to address the growing need for quality housing, particularly for seniors, veterans, individuals with disabilities, and working families.
The first floor could include community gathering spaces, meeting and event spaces, nonprofit or educational programming, and opportunities for locally-owned small businesses, all while preserving the building’s historic character.
Aguilar said the redevelopment could increase downtown foot traffic, attract additional investment and strengthen the city’s historic business district.
The project remains in the planning phase while architects, engineers and preservation specialists assess the building’s structural condition, historic integrity and redevelopment potential.
If the property qualifies for listing on the National Register of Historic Places, the designation could make the rehabilitation eligible for historic preservation incentives, grants, and tax credits, while increasing awareness of the hotel’s historical significance.
Aguilar said construction is expected to take about three years once work begins, and the overall rehabilitation is estimated to cost between $20-$22 million.
Funding is expected to come from a combination of state and federal Historic Tax Credits, grant opportunities, and nine percent Low-Income Housing Tax Credits, though the final financing plan will be determined after feasibility studies are completed.
Aguilar said the long-term vision is for the Stonewall Jackson Hotel to once again be a place where people gather—not only to live, but also to connect with neighbors, support local businesses, and celebrate San Benito’s history while helping shape its future.
The San Benito Housing Authority welcomes community interest and feedback throughout the planning process.
Anyone with questions or seeking additional information about the Stonewall Jackson Hotel rehabilitation project is encouraged to contact San Benito Housing Authority Communications and Compliance Officer Hilary Aguilar at haguilar@sanbenitohousing.com or at (956) 399-7501, Ext. 1004.