More than 444 new multifamily, affordable housing units will be created in Austin, thanks to a combination of $25.5 million in state low-income housing tax credits (LIHTC) and $6.7 million in Rental Housing Development Assistance from City of Austin General Obligation bonds and federal funds.
Austin received a rare four awards from the Texas Department of Housing and Community Affairs’ (TDHCA) 2018 Competitive (9%) Housing Tax Credit Program. In the past, the state has awarded only an average of two competitive tax credits each year for developments in Austin.
The TDHCA program is providing $76.2 million in housing tax credits to private developers to construct or rehabilitate 73 affordable properties across the state for households earning up to 60 percent of the area median family income. The 2018 allocation reflects a four-year 12.5 percent increase to the per capita tax credit allocation that was included in the federal Consolidated Appropriations Act of 2018.
Those four developments will receive tax credits to offset a portion of the federal tax liability in exchange for building affordable housing in Austin. On August 23, the city’s Austin Housing Finance Corporation (AHFC) followed suit by approving the use of $5.5 million from the Affordable Housing Bond voters approved in 2013, as well as U.S. Housing and Urban Development Community Development Block Grant funds, to provide for loans to those developments.
“These projects provide a terrific example of what is possible when the City employs innovative approaches to affordable housing. This is exactly the direction advocated by the recently adopted Strategic Housing Blueprint, which sets a goal to create 60,000 affordable units in the next decade through an integrated, multilevel strategy of policy initiatives and community partnerships,” said Rosie Truelove, Director of Neighborhood Housing and Community Development.
The developments receiving support are:
Travis Flats Apartments will be a mixed income feature housing complex at 5325 Airport Boulevard, next to existing Travis County administrative offices. The complex will include 75 units designated for low-income residents; 13 units for households earning less than 30 percent of the median family income (MFI), 49 for households at 50 percent of MFI, and 60 at 60 percent of MFI. Three of those units are reserved specifically for families at risk of homelessness. The project also received a $1.5 loan from the City of Austin, which includes federal funds and local General Obligation Affordable Housing Bonds.
The Waterloo Terrace Apartments at 12190 North MOPAC Expressway will provide 132 new affordable rental housing units, with 27 units for households at 30 percent of MFI, 27 units for those at 40 percent of MFI, and 78 for households at 50 percent of MFI. Twenty-seven units will be set aside for the Housing First Program, which connects individuals and families experiencing homelessness to permanent housing without preconditions and barriers to entry (e.g., sobriety, treatment or service participation requirements) as a first step toward accessing turning their lives around. The project also received a $3.2 million loan from the City of Austin General Obligation Affordable Housing Bonds.
The Chalmers Court East Apartments at East Fourth and Chicon Streets in East Austin will provide 135 new affordable rental housing units, with 14 units for households at 30 percent of MFI, 55 units for those at 50 percent of MFI, and 66 for households at 60 percent of MFI.
The Cambrian East Riverside Apartments at 1806 Clubview Avenue in the East Riverside Corridor, will provide 55 new affordable rental housing units, with six units for households at 30 percent of MFI, 22 units for those at 50 percent of MFI, and 27 for households at 60 percent of MFI. Ten of those units are reserved specifically for families at risk of homelessness. The project also received a $2 million loan from the City of Austin General Obligation Affordable Housing Bonds.
“Creating affordable homes for people who earn low- and moderate-incomes is a good investment,” said Truelove. “Affordable homes are the cornerstone of our communities, and it is imperative that we do what we can to encourage this housing close to great schools, good jobs, quality healthcare and retail spaces.”
ABOUT NHCD: The City of Austin's Neighborhood Housing and Community Development Department administers a variety of programs to serve the community's housing and community development needs and provides grant funding to various agencies and non-profit organizations to ensure access to livable neighborhoods and increase opportunities for self-sufficiency.
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