At an Oct. 7 meeting, the AISD Public Facility Corporation, or PFC, approved construction of the first of two income-restricted apartment buildings near East Seventh Street and Airport Boulevard. Developers are expected to break ground on the 341-unit East apartment building in December for a projected completion date of 2028, said Nick Walsh, vice president of development for The NRP Group.
"We are shovel-ready," Walsh said. "We are about one and a half months out from putting our shovels in the ground on the first phase."
What's happening
AISD will build a 675-unit affordable housing community and a new Alternative Learning Center at an 18-acre site in East Austin. The property houses the district’s Anita Ferrales Coy Facility, where the current Alternative Learning Center, a Disciplinary Alternative Education Program, is located.
At the new multifamily development, about half of the units will be income-restricted at 60% or 80% of the area median income, or AMI. The developer will give priority to leasing units to AISD teachers and staff when they become available in 2028, according to district information.
The complex will be designed to accommodate families, as nearly 45% of the East apartment building units will have two or three bedrooms, Walsh said.
The community will feature resort-style pools, fitness centers, two parking garages and a playground alongside green space and a public park. The site will feature a 5,000-square-foot nonprofit space that may be occupied by Todos Juntos, a center for English language learners, Walsh said.
The NRP Group is expected to seek the district’s approval to develop the West apartment building in four to six months, he said.
The cost
With 341 units, the East apartment building will have:
- 36 units at 60% of the AMI
- 137 units at 80% of the AMI
- 168 units at market rate
For those earning 80% of the AMI, units will range from $1,890 for a one-bedroom and $2,621 for a three-bedroom apartment. That is equivalent to a salary of $70,560 for a single person and $100,800 for a family of four. The complex will also accept housing vouchers, Walsh said.
How it works
AISD's PFC is a nonprofit that acts on behalf of the district, AISD Legal Counsel Summer Greathouse said at an Oct. 7 meeting. The PFC allows AISD to lease property to The NRP Group, which will develop the $93 million East apartment building project at no cost to the district.
The district will provide The NRP Group with a property tax exemption and receive the following revenue from the East project:
- A $250,000 closing fee
- 10% of sales tax savings
- An annual payment of $25,000 per year, plus 15% of property taxes that would’ve been paid on the project if it were not tax-exempt
- 15% of the net proceeds of any refinancing
- 1% of the gross sales price on any sale of the project
The background
AISD is one of several Central Texas districts that have pursued building affordable housing for their staff in recent years, including Pflugerville, Eanes and Lake Travis ISDs. These efforts come as districts face funding challenges alongside a rising cost of living.
The district's starting teacher salary was $58,069 for fiscal year 2025-26. Meanwhile, the market rate for a three-bedroom apartment in the Anita Ferrales Coy neighborhood was $3,300, according to AISD information.
A survey of AISD staff in 2024 found that:
- 66% identified as cost-burdened.
- 53% commute over 20 minutes to work.
- 43% had a household income of less than $60,000.
The PFC board of directors welcomed new directors Delphi Alvizo and Vincent Tovar at an Aug. 21 meeting.
AISD trustee Candace Hunter serves as president of the PFC board alongside trustees Andrew Gonzales and Lynn Boswell.
