The city of Austin and the Texas Housing Department announced more than $46.1 million was approved to serve low- and moderate-income residents and develop affordable housing solutions citywide.
The funding, which was awarded at meetings in April, May and September, will go towards projects that build and preserve affordable housing in Austin. The funds will be administered by the Austin Housing Finance Corporation (AHFC) Board, a nonprofit corporation created by the city to implement housing developments.
The money will fund eight affordable housing developments in Districts 1, 3, 4, 7 and 9, which build on Austin’s commitment to expanding housing opportunities and preserving affordability city wide. There will be one project in District 1, two in District 3, one in District 4, one in District 7 and three in District 9. Each will contribute to the construction of 728 affordable rental units for households earning at various percentages of the area median family income (MFI). Funding for the projects comes from the AHFC to support the Rental Housing Development Assistance (RHDA) program.
The remaining need for construction will offset, in part, tax credits from federal Low-Income Housing Tax Credit (LIHTC) program. The program, administered by the Texas Department of Housing and Community Affairs (TDHCA), offers credits which allow housing developers to generate equity through a reduction of federal tax liability in exchange for building low-income rental housing projects.
The following projects were awarded funding by the AHFC Board. They include:
- Bailey at Stassney – This project is located in District 3 at or near 400 and 404 West Stassney Lane. It was approved for $5.6 million from 2022 General Obligation (GO) bonds. The development will create a 104-unit multifamily community. The affordability period will be for 45 years.
- Manor Apartments – This project is located in District 1 at or near 6721 Manor Road. It was approved for $5.7 million from 2022 General Obligation (GO) bonds. The development will create a 181-unit multifamily community. The affordability period will be for 40 years.
- The Bloom at Lamar Square – This project is located in District 9 at or near 1326 and 1328 Lamar Square Drive. It was approved for $5.5 million from 2022 General Obligation (GO) bonds. The development will create a 56-unit multifamily community. The affordability period will be for 40 years.
- Lamar Square Phase 1 – This project is located in District 9 at or near 1326 and 1328 Lamar Square Drive. It was approved for $4.5 million from 2022 General Obligation (GO) bonds. The development will create a 45-unit multifamily community. The affordability period will be for 40 years. It will not be utilizing low-income tax credits.
Several projects were awarded funding at the September AHFC Board meeting, including:
- Crossroads Redevelopment – This project is located in District 7 at or near 8801 McCann Drive. The development is within half a mile of high frequency transit. It was approved for a total of $11.7 million with $7,500,000 from 2022 General Obligation (GO) bonds and $4,200,000 from the North Burnet Gateway. The project will redevelop an existing 92-unit multifamily housing property into a 110-unit multifamily community. The affordability period will be 99 years for 14 units at 30% MFI that previously received AHFC funding. The remaining 96 units will have an affordability period of 40 years.
- Pathways at Santa Rita Courts West – This project is located in District 3 at or near 2210 E. 2nd Street. The development is in a displacement risk area. It was approved for $5.9 million from 2022 General Obligation (GO) bonds, the Housing Trust Fund, and Homestead Preservation District Tax Increment Financing. The project will redevelop an existing 44-unit affordable housing community and construct a new 52-unit property to create a total of 96 units. The affordability period will be for 45 years. An affiliate of the Austin Affordable Housing Corporation will be the sole member of the general partner and the landowner, thereby allowing for a full property tax exemption.
- St. George’s Court – This project is located in District 4 at or near 1443 Coronado Hills. The development is in a displacement risk area and is within half a mile walking distance of high-frequency transit. It was approved for $1.7 million to rehabilitate an existing affordable housing community to create 60 units for senior living. The affordability period will be for 45 years.
- Waverly North – This project is located in District 9 at or near 3710 Cedar Street. The development is within half a mile walking distance of high frequency transit and is in a high opportunity area. It was approved for a total of $5.5 million with $2.227 million from Project Connect Anti-Displacement funds and $3.273 from 2022 General Obligation (GO) bonds. The project will rehabilitate an existing 76-unit affordable multifamily community. The affordability period will be for 45 years.
Area partners interested in working with the city to develop affordable housing projects can apply for gap financing via RHDA and OHDA programs on AHFC’s website.
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