Cedar Hills, an affiliate of Austin-based Realtex Development Corporation, has applied for housing tax credits with the Texas Department of Housing and Community Affairs to build an affordable housing complex near the intersection of North Lamar Boulevard and Yager Lane. But area leaders said they are hesitant to support the project.

Robert Meadows, a member of the board of the Walnut Creek Neighborhood Association, the border of which abuts the proposed development, said the board had not come to a formal decision about where it on the proposed development. He said, though, that it had reservations.

"The whole idea of putting more density is very troubling because beginning at about 4:30 [p.m.], we just can't get out of the [Walnut Creek] subdivision because of all the traffic," Meadows said.

The apartment complex, proposed for approximately 12220 Walnut Park Crossing, which is right now a grassy, tree-filled plot of land across the street from Walnut Creek Park, would be composed of approximately 184 units.

"There are also sound concerns," Walnut Creek neighborhood resident Jill Knight said. "Sound travels, and a lot of folks in that section of our neighborhood are often having to call the police with complaints about sound traveling over the creek."

Perhaps more pressing for the developer, however, are the logistical obstacles of building in that area.

"One things a lot of people don't realize is that pretty much every time you develop east of Lamar, there's a lot of issues with drainage," said Mary Rudig, president of the North Austin Coalition of Neighborhoods. The Walnut Creek Neighborhood Association is one of seven associations that compose NACN.

The area of the proposed development contains no storm drains or sidewalks. Bus stops on North Lamar are located directly on the side of the street and lack any type of shelter.

But John Boyd, vice president with Realtex, said the company still has a lot of due diligence to perform on the site before it decides to move forward and seek financing.

"We are in the very early stages of a preliminary investigation as to whether that site is suitable for affordable housing," he said.

That process, he added, could take another six months.

The neighborhood coalition plans to put together a list of concerns that it will present to Realtex.

"We would like to sit down with them and listen to their concerns," Boyd said.

Correction: An earlier version of this article stated that the proposed complex would be located on North Lamar Boulevard. The proposed location is accessible by Walnut Creek Crossing, between North Lamar Boulevard and I-35.