The breakdown
The Austin Housing Finance Corp. board, made up of council members, voted in late November to:
- Advance loans for several projects with a majority of income-restricted units
- Acquire existing apartments
- Partner with a developer to bring dozens of affordable homes to Southeast Austin
The $11.23 million in loan agreements approved Nov. 30 comes from the city's 2022 housing bond and the Project Connect transit initiative's anti-displacement budget.
Home and apartment affordability is determined based on percentages of Austin's median family income that's now $122,300 for a four-person household and $85,600 for an individual.
A closer look
Among the November updates was a partnership agreement with Industry ATX, chosen through a public solicitation, to develop between 30 and 50 income-limited homes in Dove Springs.
Industry ATX Principal Megan Etz said the developer is hoping to build as close to 50 homes as possible, and will finalize a unit count in the coming months. The project's mix of bedroom counts and amenities are also still to be decided based on local feedback.
The homes will be sold under Austin's community land trust model in which only the housing is purchased while the city continues to own the dirt beneath. Etz said the practice can help owners with costs by shielding them from the effects of property tax hikes.
According to Industry ATX
"During community engagement, the neighborhood emphasized the desire for multi-bedroom units for families and we intend to build homes ranging from one to four bedrooms in order to accommodate a wide range of family sizes," Etz said in an email. "These affordable homes will be sold to families earning up to 80% of the median family income for the Austin area. That means that many our teachers, service industry workers, firefighters, and other hardworking families will likely qualify to purchase a home for the first time."
Also of note
More funding for local homelessness response efforts is going toward two converted hotels Austin leaders have been hoping to turn into supportive housing, but that have been affected by maintenance issues, delays and some community pushback.
The properties include Pecan Gardens at 10811 Pecan Park Blvd. and Bungalows at Century Park off MoPac at 13311 Burnet Road. The city first bought Pecan Gardens for $9.55 million and the Bungalows site for $6.7 million in 2021.
Last year, Austin contracted with nonprofits Family Eldercare and Integral Care to manage the housing projects. The facilities' opening dates have been pushed back as renovations stretched on.
Council agreed to spend $3.09 million more to continue improving both sites in November, with staff citing a need to address "significant issues" at Pecan Gardens and added rehab work at the Bungalows.
Opposition to converting the former Candlewood Suites hotel at Pecan Park has lingered since the city's supportive housing plans there were first unveiled. Williamson County officials unsuccessfully sued to halt the project, while some area residents and businesses owners remain opposed to the initiative and the city's spending on it.
"We call on the city to immediately halt construction on the Candlewood and save the money for a proven, effective solution, such as a Haven for Hope-style shelter in cooperation with Travis County. There are much better options if the city chooses to listen to Austin neighbors—and not just nonprofits with something to gain from lucrative government contracts," Rupal Chaudhari, founder of the MOVE Candlewood coalition, said in a statement.
