Austin City Council approved a total of $4.98 million in loans to support both projects, which will add dozens of affordable housing spaces to the South Austin market. Funding for the projects comes from the city's $250 million 2018 housing bond and was approved through the Austin Housing Finance Corporation, which is made up of council members.
At 7308 S. Congress Ave., Summertree Development plans to construct 74 one- and two-bedroom condos, half of which are expected to be listed at an affordable level. Nine will be available to those earning up to 60% of the regional median family income, or MFI, with 28 available to those earning up to 80% MFI. The median family income of a four-person household in Austin was $98,900 as of last year.
The project team with Summertree and Citrine Development said they selected the South Austin site given their view on the need for affordable options in the rapidly developing corridor, and its place along the future Project Connect transit system line that will run down Congress.
"Affordable housing is needed everywhere in Austin, but with the passage of Project Connect it is even more important to secure permanently affordable units along future light rail lines, where there is a higher risk of displacement," Citrine owner Teresa Bowyer said in an email. "We viewed our development as an opportunity to ensure that affordable ownership opportunities would be in place prior to the arrival of the Orange Line."
The city's $460,000 loan for 7308 S. Congress Ave. that was approved March 3 follows its $2.04 million purchase of land for the project last fall.
A few miles to the west, Capital A Housing will build a new permanent supportive housing complex for the formerly homeless at 7331 Menchaca Road just outside the Southbridge Villas community. The city's $4.52 million loan authorized in early March supplements additional funding for the nearly $12 million project. The new apartment complex will feature 45 efficiency rental units, with 20 available at 30% MFI and 25 at 50% MFI.
The project represents a new piece of the regional strategy to end homelessness and build up local housing capacity. Capital A's development is a product of Travis County's supportive housing collaborative that will see seven local nonprofits use up to $50 million of the county's American Rescue Plan Act funding on housing creation. Several other supportive housing projects are also moving along.
Once completed, Capital A plans to hand the facility's management over to the county mental health and counseling center, Integral Care. The city recently approved a similar operations arrangement for its own apartment complex for those exiting homelessness in North Austin.
