Overview of Duties
In March 2022, the City of Austin created the Austin Housing Public Facility Corporation (AHPFC), a new Texas nonprofit public facility corporation, under Chapter 303 of the Texas Local Government Code (the Act) as an additional bond issuer to significantly expand its access to private activity bond cap for financing affordable housing in the City of Austin.
The City of Austin's existing bond issuer for affordable housing is the Austin Housing Finance Corporation (AHFC), a Texas public nonprofit corporation created in 1979 pursuant to Chapter 394 of the Texas Local Government Code. AHFC plays a key role in the financing of deeply affordable rental housing developments in the City through the issuance of tax-exempt private activity bonds that are typically also financed with the Low-Income Housing Tax Credits (LIHTCs). AHFC also makes subordinate loans for such financings through its Rental Housing Development Assistance (RHDA) loan program.
Private activity bonds require a volume cap allocation from the state through the Texas Bond Review Board and such allocations are limited for housing finance corporations under the state allocation rules. The LIHTCs do not require any allocation but the development must have a bond allocation. AHFC is unable to ensure that its bond issuing capacity can meet the heavy demand for affordable housing developments that require bond financing and LIHTCs in the City of Austin. As a result, the Housing and Planning Department asked the Council to create a new public facility corporation to be controlled by the City that can serve as an additional bond issuer - with additional access to private activity bond cap - for affordable housing projects in the City.
The mission of the AHPFC is to generate and implement strategic housing solutions for the benefit of low- and moderate- income residents of the City of Austin. The AHPFC's primary functions are to:
- significantly expand access to private activity bond cap for financing affordable housing in the City of Austin
- help the City meet the heavy demand for affordable housing developments that require bond financing.