“These homes will serve as a springboard to opportunity and will strengthen the fabric of our broader community," LifeWorks CEO Liz Schoenfeld said at the Oct. 10 groundbreaking. "Our work is not only about addressing homelessness, but it is about making sure that the young people we serve feel like they have a community that they can turn to and be a part of.”
LifeWorks, which combats youth homelessness, will own and operate the new housing community at 701 Tillery St. Following the fall groundbreaking, the nonprofit expects The Works III will be completed in winter 2027.
The complex is being developed by Capital A Housing and will include studio, one- and two-bedroom units rented at 30% to 50% of the local median family income, or MFI. The Austin area's MFI is currently $133,800 for a four-person household, or $93,650 for individuals.
Most tenants will be selected through the regional homelessness response system managed by the Ending Community Homelessness Coalition, or ECHO. The development will feature "intensive supportive services" for residents, according to LifeWorks.
In addition to on-site offerings, The Works III is also located blocks away from LifeWorks' main facility on North Pleasant Valley Road where more aid is available.
“This is a community-driven investment. It will add safe and stable homes close to schools, jobs and transit. It will provide a number of essential wraparound services like peer support, case management, employment services and providing a space for true community," said council member José Velásquez, who represents the area in District 3.
The Works III is being built with support from a wide range sources, including a $6.1 million donation for the East Austin property.
"This project shows how coordinated action by the public, private, and nonprofit sectors can meaningfully reduce homelessness in Austin," Capital A Principal Conor Kenny said in a statement.
The city provided an $8 million loan for the project through local affordable housing financing and federal HOME dollars through the Department for Housing and Urban Development. And the county dedicated $13 million in American Rescue Plan Act funds reserved in its Supportive Housing Collaborative.
“Together, we’re building more than housing. We’re building opportunity, safety and a future for young people in Austin and Travis County," County Judge Andy Brown said.
The project also won millions from the state through the Texas Department of Housing and Community Affairs' allocation of federal HOME American Rescue Plan funds. TDHCA Executive Director Bobby Wilkinson said that investment would've previously been prevented under state statute and was only made possible after Texas lawmakers agreed to allow the funding to flow to places like Austin.
"It literally took an act of Congress and the state Legislature to change state law for us to be able to get $5.5 million to this project. I’m glad it worked, both sides of the aisle coming together for good work," he said. "This development is a powerful example of how strategic financing tools can be leveraged to serve those who need it most and make a positive impact on the community."
