New community will offer services to assist persons exiting homelessness
For anyone experiencing homelessness in search of a stable place to live, please contact Austin ECHO (Ending Community Homelessness Coalition) for a Coordinated Assessment. Details and access information are available at www.austinecho.org/gethelp.
AUSTIN, TX – The City of Austin Housing Department is pleased to announce the opening of a new permanent supportive housing community located at 1004 E. 39th Street, in the Central Austin Hancock neighborhood in District 9. Dubbed Cady Lofts, the new four-story, elevator served community offers 100 fully furnished studio units to persons exiting homelessness. Persons experiencing chronic homelessness and those with physical and mental disabilities are identified and/or selected using a coordinated entry process required by the U.S. Department of Housing and Urban Development (HUD) and facilitated in Travis County by the Ending Community Homelessness Coalition (ECHO). Cady Lofts is the result of a collaboration between SGI Ventures Inc. and the Austin Affordable Housing Corporation, the non-profit subsidiary of the Housing Authority of the City of Austin (HACA).
“We are proud to work side-by-side with SGI Ventures in bringing this development online and thrilled to have additional permanent supportive housing come online in Austin. Permanent supportive housing is a much-needed tool to address homelessness. It addresses a critical need for long-term housing stability for those experiencing chronic homelessness, while providing much needed services for overall health and well-being,” says Mandy DeMayo, Interim Director for the Housing Department.
As a permanent supportive housing (PSH) property, all Cady Lofts’ units are dedicated housing for formerly chronically homeless individuals referred through the Coordinated Entry System managed by ECHO. These units are not intended to accommodate families. Most chronically homeless individuals have incomes below 30% of area median income. As such, every unit will have a dedicated voucher to make up the difference between what residents are able to pay and the rents charged at each income level – ensuring residents can live at the property regardless of their ability to pay. All residents must be income qualified. The units are subject to the following restrictions:
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20% of the residents must have incomes of 30% of area median income (AMI) or below
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60% of residents must have incomes of 50% AMI or below
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20% of residents must have incomes of 60% AMI or below
Unit features include solid surface kitchen countertops and bathroom vanities, energy efficient appliances and lighting and resilient flooring. Community amenities include meeting or training rooms, a library, community laundry areas on each floor and community warming kitchen, a computer center and a central outdoor community courtyard. Volunteers of America will serve as property manager and Family Endeavors Inc. will be the service provider. Saigebrook, O-SDA Industries, and New Hope Housing are all acting as development and service provider consultants.
Wrap-around support services such as job training, health screenings, benefits assistance and case management services will be offered to residents. A variety of classes will be offered, including fitness, cooking, nutrition, personal finance and tax preparation. Free monthly on-site social events will also be held. The building offers controlled access and 24-hour onsite management. All utilities are provided at no cost to residents.
Cady Lofts is within walking distance (or a half mile) of bus/transit stops, the St. David’s Medical Center and the Hancock shopping center, which includes an H-E-B, a CommunityCare Walk-in Clinic and numerous restaurant, service and retail shops.
“Cady Lofts provides both a trauma-informed model of housing and robust onsite support services, offering a pathway to stability through trauma-informed housing and support services, designed to help residents heal, rebuilt, and thrive. According to ECHO’s 2024 State of the HRS report, there are over 1,500 chronically homeless individuals in Austin,” explains Sally Gaskin, president of SGI Ventures, who is a developer and tax credit and private activity bond consultant. “Those who have experienced long-term or repeated homelessness need housing with ongoing support and wraparound services, intended to keep them permanently housed and give them resources to become stable and flourish after experiencing the trauma of homelessness and its compounding effects.”
Gaskin adds that PSH communities are an integral part of the City’s overall strategy to end chronic homelessness by offering long-term solutions beyond emergency shelters and rapid rehousing, which offers crucial short-term assistance.
“Permanent supportive housing (PSH) provides long-term rental assistance and individualized support services to those with the highest needs and most complex barriers to housing, including disabilities and chronic homelessness. PSH combines housing affordability with individualized support services,” she explains. “With 100 PSH units, Cady Lofts addresses the City’s shortage of such units, helping to stably house our most vulnerable neighbors.”
Caption: Photo of interior courtyard for the Cady Lofts Apartments.
Dollars and cents
A variety of funding sources contributed to the construction of this development, including $13.84 million in tax credit equity and a $1.08 million loan from the Texas Department of Housing and Community Affairs (TDHCA) under the 9% Housing Tax Credit (HTC) program. This program awards tax credits to developments, allowing developers to exchange these credits with investors for equity investments, typically covering about 70% of total development costs.
Additional funding sources for the development included a $7.2 million loan from the Austin Housing Finance Corporation (AHFC) through the Rental Housing Development Assistance (RHDA) program, financed by General Obligation (GO) Bonds. The Austin Community Foundation (ACF), through its Housing Accelerator Fund, provided a $2 million construction loan with favorable terms to support the project. Other contributors included the Austin Affordable Housing Corporation, the Federal Home Loan Bank (FHLB) Dallas, and the Texas State Affordable Housing Corporation (TSAHC). The developer also leveraged the City of Austin’s Affordability Unlocked program
In addition, project-based vouchers have been secured for every unit: 75 Housing Choice Vouchers from the Housing Authority of the City of Austin (HACA) and 25 Local Housing Vouchers from the City of Austin to ensure that no resident will be required to pay more than 30% of their income on rent.
“Private and public funding sources for PSH and affordable housing communities are critical, as this funding allows us to provide not just long-term housing, but long-term comprehensive services and care to meet the needs of our friends and neighbors transitioning out of chronic homelessness,” Gaskin says. “Each of our funding sources, including our partnership with AHFC, makes it possible for us to sustainably provide the wrap-around support services essential for PSH to be successful.”
Cady Lofts was constructed on a .74-acre site. Total development costs for Cady Lofts were approximately $25 million. Construction began in October 2023 and ended in March.
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About the City of Austin Housing Department
The City of Austin Housing Department provides equitable and comprehensive housing solutions, community development, and displacement prevention services to enhance the quality of life of all Austinites. To access affordable housing and community resources, 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 the Housing Authority of the City of Austin
Established in 1937, the Housing Authority of the City of Austin (HACA) is an independent public unit separate from the City of Austin and responsible to an autonomous Board of Commissioners. HACA frequently works in partnership with civic and community groups to meet the needs of low-income families, seniors, persons with disabilities, and persons experiencing homelessness. Its mission is to cultivate sustainable, affordable housing communities and partnerships that inspire self-reliance, growth, and optimism. As a High-Performing housing authority that assists more than 20,000 Austinites, HACA owns and operates about 2,000 units of subsidized housing in multiple developments across Austin.
About the SGI Ventures Inc.
SGI Ventures, Inc. is a developer and tax credit and private activity bond consultant. It has been active in the affordable housing industry since 1996 and has developed over 1,000 affordable units.
About Saigebrook Development
Saigebrook Development, LLC creates exceptional affordable housing developments that serve the local workforce while also providing options for market rate rental units within each community. Established in 1996, the WBE- and HUB-certified real estate development consulting firm has developed and constructed more than 6,800 rental homes across the southeastern United States.
About O-SDA Industries
O-SDA Industries, LLC is a City of Austin MBE/WBE/Texas HUB-certified real estate development firm with deep expertise in building affordable housing communities that meet the unique needs of each city and individual neighborhood they serve. Since 2011, O-SDA has been part of over 25 successful 9% Housing Tax Credit applications for projects across the state of Texas.