AUSTIN, TX—The City of Austin celebrates being awarded $6.7 million in the second round of the Pathways to Removing Obstacles to Housing (PRO Housing) Grant, administered by the U.S. Department of Housing and Urban Development (HUD). The grant dollars will be used to further develop, evaluate, and implement housing policy plans, improve housing strategies, remove regulatory barriers, and facilitate affordable housing production and preservation.  

“Austin continues to demonstrate that our priority is to ensure access to affordable housing for all Austinites,” explains Mayor Kirk Watson. “We are ready to implement these grant dollars to expand our impact on equitable housing initiatives.” 

HUD received over 200 applications from nearly every state and territory in this additional round of funding. Grants totaling $100 million were awarded to 18 winners. The grant process uses the Community Development Block Grant (CDBG) statutory and regulatory framework. Successful applicants demonstrated a commitment to eliminating barriers to housing and progress toward creating more housing-forward communities. 

“The City of Austin is thrilled to receive $6.7 million to expand our efforts for affordable housing,” says Mandy DeMayo, Interim Director of the Housing Department. “This impactful funding from HUD will allow us to strategically update policy plans, invest in development near future light rail, and create new zoning tools to unlock missing middle opportunities.” 

“In the past year, the City of Austin has made important updates to its land development code that have enabled more housing options and provided support for our historic transit investments,” said Planning Director Lauren Middleton-Pratt. “This PRO Housing grant will help us build upon those successes as we continue our work to create innovative solutions to shape a more affordable Austin where everyone can thrive.”

City of Austin PRO Housing Grant Activities 

• Update the Strategic Housing Blueprint and Opportunity Mapping Index

• Invest in Development and Preservation of Affordable Housing Near Planned Light Rail 

• Create New Zoning Tools to Unlock Missing-Middle and Urban Mixed-Use Development, Enabling More Housing Opportunities for All  

The spending of $6.7 million in PRO Housing Grant funding is planned over six years. Approximately $3 million is for gap financing for the Ryan Drive affordable housing development (located at the intersection of the Red Line and the new Austin Light Rail Priority Extension) and future acquisitions in the South Congress area; approximately $1 million for the creation of new zoning tools to facilitate more diverse and attainable housing; and $750,000 for an update to the Austin Strategic Housing Blueprint and Opportunity Mapping. The Strategic Housing Blueprint, adopted in 2017 with a 10-year timeframe, needs updates to reflect current challenges and priorities in affordable housing. Opportunity Mapping is a critical phase for identifying areas where affordable housing investments will have the most impact. Updating the Opportunity Index ensures that housing policies are aligned with economic opportunities, transit access, and equitable development.   

The HUD PRO Housing Grant empowers communities that are actively taking steps to remove barriers to affordable housing and seeking to increase housing production and lower housing costs over the long term. Regulatory and other barriers have made it difficult to produce, preserve, and access affordable housing. Underserved communities of color and low-income populations feel these pressures more severely. These barriers also reduce opportunities to build generational wealth and further increase evictions and the likelihood of homelessness. 

Austinites were invited to share input on how funding should support our local housing programs. All application details and public comments are available online at SpeakUpAustin.org/PROHousingGrant2024 

Resources for affordable housing and displacement prevention are available online at www.austintexas.gov/housing.    

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About the City of Austin Housing Department

The City of Austin Housing Department provides equitable and comprehensive housing, community development, and displacement prevention to enhance the quality of life of all Austinites. To access affordable housing and community resources, visit www.austintexas.gov/housing.