The City of Austin is making strides in expanding access to affordable housing, as the Austin City Council has just thrown its support behind six housing developments aiming for coveted tax credit funding. These developments have secured resolutions that are critical for entering the competitive ring for 9% low-income housing tax credits offered by the Texas Department of Housing and Community Affairs (TDHCA).
In a news release published by the City of Austin, Mandy DeMayo, the Interim Director for the Housing Department, emphasized the importance of this step, stating that these "resolutions of support push the proposed communities one-step closer to in their competitive bids for the 9 percent tax credits." DeMayo also highlighted how tax credit developments not only alleviate the shortage of affordable rental housing but also attract private investment and create jobs with lasting economic benefits.
Among the six proposals, some are aimed at rehabilitating existing communities while others are poised to produce brand-new units. Each development has committed to keeping units rent restricted for at least 30 years, ensuring affordability for generations to come. The proposals are diverse, providing affordable units across different income levels and serving specific demographics, including seniors.
Specific developments such as Pathways at Santa Rita Courts West and Waverly North, both received sizable attention for being situated in either displacement risk areas or high opportunity zones and in close vicinity to transport options. According to James May, a Housing and Community Development Officer for the department, "The 9 percent tax credits play a pivotal role in the development of affordable housing and ensure these communities stay affordable for several decades." As detailed by the city's announcement, other supported projects like Eberhart Place and St. George’s Court focus on offering senior living options, emphasizing those most in need of stable, low-cost housing.
The LIHTC program, a federal initiative, bolsters these efforts by providing tax relief to developers who meet the criteria and commit to building low-income rental housing projects. This program significantly subsidizes unit costs, making the development of such communities economically feasible. While the process and criteria for the selection remain stringent, as Austin is in TDHCA's Region 7 - an area historically limited to just two direct awards per year - the city remains hopeful for an additional award this year which can further bolster its affordable housing projects, as reflected in their application submissions.
For a more granular look at the projects, their locations, and the income levels they serve, the City of Austin Housing Department offers a wealth of information and resources on its website, guiding Austinites through their community development and displacement prevention services.
