New Affordable Menchaca Townhomes Bring Ten Homeownership Opportunities to South Austin

AUSTIN, TX – Austin Housing is excited to announce the groundbreaking of the new affordable home community, Menchaca Townhomes. Located at 7331 Menchaca Road in District 5, the development offers one of the few affordable ownership opportunities under construction in South Austin. The developer is Capital A Housing and the Austin Housing Finance Corporation provided financing. 

All 10 homes will be reserved for households earning at or below 80% of the Area Median Income (AMI), expanding access to ownership opportunities in transit-rich, high opportunity neighborhood (where people would most likely succeed because of access to employment, high performing schools, fresh and healthy foods, etc.). The community is designed as a “missing-middle housing model” that increases attainable homeownership while maintaining neighborhood compatibility and efficient land use. 

“Homeownership remains one of the most effective pathways to long-term housing stability and generational wealth building for Austin families. The Menchaca Townhomes development demonstrates how strategic public investment, innovative housing tools, and strong partnerships can expand affordable ownership opportunities in high-opportunity areas of our city,” says Nicole Joslin, Housing and Community Development Officer for Austin Housing. “By investing in developments like this, we are helping ensure Austin remains a place where families of varying income levels can put down roots, build equity, and share in the city's future prosperity.” 

Apart from Capital A Housing, the development team includes Urbanuity as the general contractor and Civilitude as the civil engineer. 

“Affordable housing shouldn't be concentrated in only certain parts of Austin. We believe families at all income levels deserve the opportunity to own a home in established neighborhoods, close to jobs, schools, and the amenities that make a community thrive, says Fayez Kazi, CEO, Capital A Housing. “Menchaca Townhomes demonstrates how thoughtful, small-scale development can create those opportunities while fitting naturally into the surrounding neighborhood.” 

Making Affordable Housing Possible 

All of the townhomes are reserved for households at or below 80% AMI. Two units will have 3 bedrooms and 2.5 baths; 4 units will have 2 bedrooms and 1.5 baths; and 4 units will have 2 bedrooms and 2.5 baths. All units include long-term affordability requirements, income qualification standards, and resale restrictions consistent with Austin Housing’s affordability framework. Community highlights include: 

• Three model types will vary in size from 1,047 to 1,745 square feet 

• Per AFHC affordable housing guidelines the max price for a 2-bedroom home is $253,000 and $289,500 for a 3-bedroom. 

• Transit accessible location served by Capital Metro Routes 3, 103, and the Westgate Transit Center 

Homes will be listed once available for occupancy. Construction started in early August; and 3 units are already at the framing stage. Plans are to have those first 3 units completed in February 2027 and the remaining by early 2028. Potential homebuyers will go through an income verification process with Austin Housing. More details about this process will be made available at a later date. 

The new community was made possible through the City’s Affordability Unlocked program and support from the Ownership Housing Development Assistance (OHDA) Program. It received $1.9 million from the AHFC’s Ownership Housing Development Assistance (OHDA) Program, funded by Housing Trust Fund and General Obligation (GO) Bond monies.  

Other funding sources included a construction loan from Austin Community Foundation. Homes are expected to be available for sale following an approximately 18‑month construction period and issuance of certificates of occupancy. 

“Building ten townhomes on less than half an acre presents unique construction challenges, from limited site access to coordinating multiple trades in a compact space. Projects like Menchaca require careful planning, precision, and teamwork,” says Mudassir Ansari, COO, Urbanuity. “We're excited to bring our construction expertise to this development and deliver ten quality homes that families will be proud to call their own.” 

For more information about affordable homeownership programs, visit www.austintexas.gov/housing.  

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About Austin Housing 
Austin Housing creates and preserves housing opportunities to stabilize communities. To access affordable housing and community resources that help you, visit www.austintexas.gov/housing.  

About the Austin Housing Finance Corporation 
The Austin Housing Finance Corporation (AHFC) was created as a public, non-profit corporation and instrumentality of the City of Austin. The mission of the AHFC is to generate and implement strategic housing solutions for the benefit of low- and moderate-income residents of the City of Austin. 

About Capital A Housing   
Capital A Housing is an Austin-based affordable housing developer dedicated to expanding access to affordable homeownership and rental housing throughout Central Texas. With more than 550 affordable homes under construction and experience spanning hundreds of millions of dollars in housing and community development projects, Capital A Housing brings an integrated approach to addressing the region's housing challenges. Through its affiliated companies and strategic partnerships, the organization combines expertise in real estate development, civil engineering, urban planning, permitting, and construction. This multidisciplinary approach enables Capital A Housing to navigate complex development processes, manage costs, and deliver housing that is financially sustainable, thoughtfully designed, and responsive to community needs. For more information, visit www.capitalahousing.com. 

About Civilitude 
Founded in 2020, Urbanuity is a Central Texas-based general contractor specializing in residential construction, urban infill development, and affordable housing. The company focuses on delivering thoughtfully designed, cost-effective housing while maximizing the potential of constrained and underutilized properties. Its team works closely with developers, architects, engineers, and consultants to coordinate construction activities, address site constraints, manage costs, and maintain quality throughout the building process. Urbanuity recognizes that successful infill development requires more than efficient construction. It demands careful planning, attention to surrounding neighborhoods, and creative solutions that balance design, functionality, and affordability. Through this approach, the company contributes to the creation of housing that strengthens communities and makes more efficient use of existing urban infrastructure. For more information, contact mudassir@urbanuity.com.