In a bid to prevent low-income residents from being turfed out onto the streets, Foundation Communities, an Austin-based affordable housing nonprofit, is scrambling to raise an additional $50,000 for emergency needs. This cash injection is part of a larger goal to gather $200,000 earmarked for unexpected expenses this year. The organization has seen an uptick in aid requests recently, particularly over the festive season.
Executive director Walter Moreau explained to the Austin Monitor that January often witnesses a swell in financial woes following end-of-year spending. "It's mainly families that have a crisis. They have an emergency medical situation and end up in the hospital … or something that causes them to lose work. Even one month of rent can make all the difference to holding on to their housing and not falling behind," Moreau said.
While grappling with the current crisis, Foundation Communities is also looking forward, continuing its mission to address Austin's affordable housing shortage. The organization is advancing two new housing projects: Balcones Terrace, set to open in spring with 123 units, and Parker Lane apartments, which will add another 135 units and is due to be completed in the summer.
The construction of these affordable units comes as some good news against the backdrop of a surge in the Austin housing market. An estimated 60,000 apartments are slated to open over the next 18 months, a move that experts believe could ease the long-term escalation of housing costs in the area. Notably, rents have dipped by 8 percent towards the close of last year, according to Austin Monitor, following a decrease in in-migration and a leveling off in the local economy.
Robin Davis, manager of apartment research firm Austin Investor Interests, noted the significance of the dropping occupancy rates in the Austin area, now at 89 percent. Comparing past inflated rent increases, Davis mentioned to the Austin Monitor, "Occupancy has dropped all the way down to 89 percent. That’s huge for our market. Now, again, some areas haven’t fallen as much as others, but as occupancy falls, rents follow." These developments are in sharp contrast to the years of aggressive rent hikes that have burdened many Austin residents.
