Big moves are happening in the arena of affordable housing in Austin, with City Council set to review plans for 11 new developments that promise to add roughly 1,100 housing units to the city's portfolio. These projects are gunning for a slice of the state's Low Income Housing Tax Credit (LIHTC) Program which could significantly reduce construction costs by offering tax credits to be sold off to banks and investors, according to the Austin Monitor.
These aren't your run-of-the-mill credits; we're talking about a coveted 9 percent rate that's competitively awarded, intended not just to make housing more affordable but also to drive job growth that will stick around longer than the construction dust. Mandy DeMayo, the head honcho of the Housing Department, pointed out the fierce local competition for these credits, with the greater Austin region looking at a pot of about $5.3 million, enough to back just two projects, plus another $13 million up for grabs statewide for projects considered to be "at risk."
Housing staff are also bringing their A-game to the table, tossing in seven additional city priorities like utilizing city-owned land effectively, creating housing in areas ripe for opportunities, and offering support for transit-oriented development. A memo stated, "Applicants who met two of these criteria were eligible to receive a recommendation for a Resolution of Support. Of the 15 initial applications, 13 applicants met at least two of these criteria." But let's not forget that subsidy needs and a tight pool of state aid could force some hands to seek alternative financial sources to truly to close the gap on their financing needs, as per Austin Monitor.
Getting City Council's thumbs-up doesn't mean the cash floodgates will open though. DeMayo makes it crystal clear, "approval of a Resolution of Support by Council does not indicate support for any future requests for City funding."
