News Summary
The City of Austin has allocated over $46.1 million for eight new affordable housing developments aimed at supporting low- and moderate-income residents. This funding was approved by the Austin Housing Finance Corporation Board during several meetings in 2025. Although the budget is about $4 million lower than last year’s allocation, it will assist in enhancing the availability of affordable rental units across multiple districts. The initiative aims to cater to households earning at or below 30%, 50%, and 60% of the median family income, promising long-term housing solutions for diverse residents.
Austin City Approves Significant Funding for Affordable Housing Developments
The City of Austin has allocated over $46.1 million for eight new affordable housing developments across various districts, aiming to support low- and moderate-income residents. This funding was approved by the Austin Housing Finance Corporation (AHFC) Board during meetings held in April, May, and September of 2025.
This year’s funding amount is approximately $4 million less than the city’s allocation in the previous year. The decrease in funds is attributed to a lower number of units being constructed in 2025 compared to 2024, when the city approved over $50 million for the construction of more than 1,000 new affordable housing units.
Focus on Affordable Rental Units
The newly allocated budget will assist in the Rental Housing Development Assistance (RHDA) program, which is designed to enhance the availability of affordable rental housing. The funding aims to facilitate the construction of 728 affordable rental units specifically targeting low- and moderate-income families in the city. The developments will be spread across multiple districts in Austin, including Districts 1, 3, 4, 7, and 9.
The affordable housing initiatives will cater to households earning at or below 30%, 50%, and 60% of the median family income (MFI). The director of the Housing Department highlighted this investment as essential for realizing Austin’s vision of promoting safe and affordable housing for its community.
Utilization of Low-Income Housing Tax Credit
Most of the approved developments (seven out of the eight) will benefit from the federal Low-Income Housing Tax Credit (LIHTC) program, which is administered by the Texas Department of Housing and Community Affairs (TDHCA) to mitigate construction costs. This financial support is crucial for allowing developers to build and sustain these affordable housing projects, ultimately serving the needs of families, seniors, and individuals seeking homes.
Details of Approved Projects
The approved projects include several significant developments that will contribute to the overall affordable housing landscape in Austin. Here are the details:
- Bailey at Stassney in District 3: $5.6 million for a 104-unit multifamily community.
- Manor Apartments in District 1: $5.7 million for a 181-unit multifamily community.
- The Bloom at Lamar Square in District 9: $5.5 million for a 56-unit multifamily housing development.
- Lamar Square Phase 1 in District 9: $4.5 million for a 45-unit multifamily community.
- Crossroads Redevelopment in District 7: $11.7 million to convert a 92-unit property into a 110-unit community.
- Pathways at Santa Rita Courts West in District 3: $5.9 million for redevelopment into 96 units.
- St. George’s Court in District 4: $1.7 million for the rehabilitation of 60 units for seniors.
- Waverly North in District 9: $5.5 million for the rehabilitation of 76 existing units.
Long-term Solutions for Housing Needs
The funding initiative aims to ensure that long-term housing solutions are available for a diverse range of residents. The AHFC has plans to streamline its funding process in 2025 by introducing a single annual Notice of Funding Availability (NOFA). This move is expected to make the evaluation process clearer and more transparent, ultimately enhancing the effectiveness of funding distribution for affordable housing in Austin.
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Author: Construction TX News
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