What happened
Austin City Council members, through the Austin Housing Finance Corporation, signed off on the construction of 25 affordable homes at the corner of Doris and Hathaway Drives near Burnet Middle School Aug. 29.
The 1.23-acre site owned by the AHFC has sat empty for several years. City officials first agreed to buy the land for future affordable housing in 2016 in a group property purchase from Austin ISD totaling $2.88 million.
Housing Development Manager Chanda Gaither said the Wooten-area properties were chosen for the upcoming project out of the AHFC's more than 100 acres of empty land based on several characteristics in the surrounding neighborhood.
"We evaluate each site for best use based on several factors, including the competitiveness of development funding, type of development and alignment with Strategic Housing Blueprint goals," Gaither said. "Dorris Hathaway’s proximity to amenities, density level and transportation access allowed for consideration of homeownership development."
Construction on the new homes is expected to kick off next year with sales starting in 2026, according to the Housing Department.
The housing will be developed under the community land trust, or CLT, model that Austin uses for some ownership affordable housing.
Zooming in
In a CLT, an entity like the AHFC retains ownership of the land that houses or townhomes sit on to reduce the end sale price. The ownership units are then sold to eligible residents at affordable levels based on income, who also lease the land for lower monthly fees. Any future resales of the homes are also kept at affordable rates.
"Twenty five affordable condos right next to Burnet Middle School in District 4 ... I’m really happy to see that moving forward, and look forward to seeing future, especially condominium-type, affordable housing community land trust projects in the future," council member Chito Vela, who represents the area, said Aug. 29.
Since 2015, 17 homes under Austin's CLT model have been occupied. CLT home sales prices have fallen between about $195,000 and $247,000 based on affordability levels, coming in well below citywide medians.
Gaither said 25 homes have already been added in North, East and South Austin under the city's preference policy intended to help lower- and middle-income Austinites with historic ties to the city who may be facing displacement. New construction is also planned in Southeast and North Austin.
Going forward
Eligible applicants based on income can apply for new affordable CLT housing, as available, through the city's online portal. CLT housing is open to households earning up to 80% of Austin's median family income, or MFI, with prioritization based on the city preference policy.
The city also offers homebuyer resources including down payment assistance.
