April 18, 2024

Housing Finance Development

It's Your Housing Finance Development

$50M in New Affordable Housing Developments Approved by the Austin Housing Finance Corporation Board

Photo: Escuela Nueva multi-family development with Guadalupe Neighborhood Development Corporation; rendering provided by Architect Hatch + Ulland Owen.

AUSTIN, TX – The City of Austin Housing Department announces approval of $50 million in funding for nine affordable housing developments in Districts 1, 2, 3, 7, 8, and 9, as approved by the Austin Housing Finance Corporation (AHFC) Board today. Totaling 1,018 in new and preserved rental units plus 51 ownership units, all units will be affordable for households earning at or below 80% median family income (MFI). Properties expect to welcome residents beginning in 2024 through 2027. The City of Austin created the Austin Housing Finance Corporation as a public, non-profit corporation to generate and implement strategic housing solutions for the benefit of low- and moderate-income residents. 

“Each development and each new unit of affordable housing creates opportunity for Austinites,” explains Mandy DeMayo, Interim Director for the Housing Department and AHFC Treasurer “We know that by opening the doors for housing stability, local communities will experience improved health and well-being, greater economic success, and encourage a more connected and diverse neighborhood of support.” 

Balcones Terrace

Balcones Terrace, located in District 7 at 10024 North Capital of Texas Highway, was approved for $1,553,529 in Community Development Block Grants (CDBG). Funding will go towards hotel rehabilitation and conversion into a permanent supportive housing development with 123 units for individuals exiting homelessness. The property is owned by AHFC and operated by Foundation Communities, with a 40-year affordability period. Rehabilitation completion is on track for 2024, with an anticipated move-in later this summer. 

  • 31 units will be available for rent at or below 30% MFI,
  • 31 units will be available for rent at or below 40% MFI, and
  • 61 units will be available for rent at or below 50% MFI 

Cairn Point at Montopolis 

Cairn Point, located in District 3 at 1013 Montopolis Drive, was approved for $6M in 2022 General Obligation Bonds. Funding will go towards development costs for the 150-unit supportive housing development for seniors. The property will be owned and operated by Vecino Group, with a 45-year affordability period. Construction completion is anticipated for September 2025, with an anticipated move-in for February 2026. 

  • 23 units will be available for rent to households earning at or below 30% MFI,
  • 50 units will be available for rent to households earning at or below 50% MFI, 
  • 52 units will be available for rent at 60% MFI, and
  • 25 units will be available for rent at 80% MFI 

Escuela Nueva

Escuela Nueva, located in District 3 at 2013 Montopolis Drive, was approved for $9,690,000 in 2022 General Obligation Bonds. Funding will go towards development costs for the 114-unit multi-family development. The property is owned and operated by Guadalupe Neighborhood Development Corporation (GNDC), with a 40-year affordability period. 

  • 20 units will be available for rent to households earning at or below 30% MFI,
  • 66 units will be available for rent to households earning at or below 50% MFI, and 
  • 28 units will be available for rent at 60% MFI 

Mary Lee Square

Mary Lee Square, located in District 9 at or near 1316, 1318, 1322-1324, 1330-1332, and 1340-1342 Lamar Square Drive, was approved for $5,446,471 in 2022 General Obligation Bonds. The properties will be primarily owned and operated by Foundation Communities, with a 40-year affordability period. Two buildings will be preserved within a partnership between AHFC and Foundation Communities. Funding will go towards the acquisition of the ten existing buildings and redevelopment of the site, including the preservation of 216 existing households. Construction completion is anticipated for October 2025.  

  • 88 units will be available for rent to households earning at or below 30% MFI, 
  • 64 units will be available for rent to households earning at or below 50% MFI, and 
  • 64 units will be available for rent at 60% MFI 

Real Gardens

Real Gardens, is a new construction development located in District 1 at 2824 and 2826 Real Street and was approved for $1,122,639 in Homestead Preservation District Tax Increment Reinvestment Zone funding. The 60-unit, supportive housing property will be developed by Capital A Housing and owned and operated by Family Eldercare, with a 45-year affordability period. Due to deeper affordability, the unit mix above has changed from what was previously approved by the AHFC Board in 2022. Construction completion is anticipated for January 2026, with an anticipated move-in for March 2026. 

  • 35 units will be available for rent to households earning at or below 30% MFI,
  • two units will be available for rent to households earning at or below 40% MFI, and 
  • 23 units will be available for rent at 50% MFI 

Seabrook Square II

Seabrook Square ll, located in District 1 at 2210 Pershing Drive, was approved for $7,900,000 in funding from the following sources: $1,697,099 2022 General Obligation (GO) Bonds, $21,740 2013 GO Bonds, $5,181,161 Downton Density Bonus, and $1,000,000 HOME ARPA. The property is new construction of 60 supportive housing units to be developed by Capital A Housing and owned and operated by Integral Care, with a 40-year affordability period and a ground lease with AHFC. Construction completion is anticipated for June 2026, with an anticipated move-in for August 2026. 

  • All 60 units will be available for rent to households earning at or below 30% MFI. 

Sunset Ridge

Sunset Ridge, located in District 8 at 8413 Southwest Parkway, was approved for $8,885,000 in 2022 General Obligation Bonds. Funding will go towards development costs for the 221 multi-family residential property. The property is owned and operated by Manifold Development, with a 40-year affordability period. Construction completion is anticipated for December 2026, with an anticipated move-in for February 2027. 

  • 100 units will be available for rent to households earning at or below 50% MFI, 
  • 76 units will be available for rent to households earning at or below 60% MFI, and 
  • 45 units will be available for rent at 80% MFI 

5900 South Pleasant Valley

5900 South Pleasant Valley, located in District 2 at 5900 South Pleasant Valley, was approved for $8,950,000 in 2022 General Obligation Bonds. Funding will go towards development costs for the 74-unit multi-family residential development. The property is owned by AHFC and operated by Structure Development and JCM Ventures, with a 40-year affordability period. Construction completion is anticipated for April 2025, with an anticipated move-in for September 2025. 

  • 19 units will be available for rent to households earning at or below 30% MFI, and 
  • 55 units will be available for rent at 50% MFI 

GSNZ 7 Acres West

GSNZ 7 Acres West, located in District 3 at 2721 Goodwin Avenue, was approved for $1,435,200 in 2022 General Obligation Bonds. Funding will go towards development costs of nine ownership units within a 51-unit ownership housing project being developed in phases. The property is owned and operated by Guadalupe Neighborhood Development Corporation (GNDC), with a 99-year affordability period. Phase one construction completion is anticipated for December 2025. 

  • 14 units will be available for sale to households earning at or below 60% MFI, and 
  • 37 units will be available for sale to households earning at or below 80% MFI 

“We remain focused on our mission to create and preserve affordable housing for equitable and lasting support for our communities who need it most,” explains James May Housing and Community Development Officer for the Housing Department. “These developments employ innovative funding strategies while expanding our regional coordination and partnerships.” 

A Holistic Approach to Affordable Housing 

In 2017, Austin City Council adopted the Austin Strategic Housing Blueprint detailing goals to reach 135,000 housing units over the next ten years (2018-2028). The Blueprint includes goals for affordable housing in every City Council District to ensure that resources are aligned equitably. This ambitious 10-year plan aimed to facilitate community partnerships around a single, strategic vision to create 60,000 affordable housing units for those making less than 80% of the median family income and fill the need for affordable housing throughout the city. The Strategic Housing Blueprint proposed a wide array of new policy tools to allow for a multi-faceted and collaborative approach for producing and preserving affordable housing over the next ten years.  

According to a recent City memo, the Austin housing market has radically changed since the Blueprint was adopted in 2017. The Blueprint acknowledged the need for innovative strategies to address challenges associated with limited resources, expanding regional coordination and partnerships, and legislative constraints. With this lens, the City is well past achieving the goals identified as within the City’s control including federally funded, existing density bonus programs, Housing Trust Fund, 2013 General Obligation Bonds, 2018 General Obligation Bonds, 2022 General Obligation Bonds. 

 

About the City of Austin Housing Department

The City of Austin Housing Department provides equitable and comprehensive housing, community development, and displacement prevention to enhance the quality of life of all Austinites. To access affordable housing and community resources, visit www.austintexas.gov/housing.

About the Austin Housing Finance Corporation

The Austin Housing Finance Corporation (AHFC) was created as a public, non-profit corporation and instrumentality of the City of Austin. The mission of the AHFC is to generate and implement strategic housing solutions for the benefit of low- and moderate-income residents of the City of Austin. 

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