Construction is officially underway on two new affordable-rental communities that city leaders say will bring some badly needed relief to Austin’s housing crunch. National CORE, a national nonprofit developer, has broken ground on a pair of “sister” projects that will add 208 income-restricted apartments across Districts 3 and 4.
The developments, Bailey at Berkman and Bailey at Stassney, will each deliver 104 units targeted to households earning 30%, 50% and 60% of area median income, with a portion set aside as permanent supportive housing. City officials expect both communities to wrap construction in summer 2027.
At a May 15 groundbreaking ceremony, City of Austin officials joined National CORE and project partners and framed the two sites as key pieces in the city’s push to expand deeply affordable rentals. Each development will reserve 26 Continuum of Care units and include space for on-site supportive services. The Bailey at Stassney is planned for 5516 Humming Bird Lane in District 3, while the Bailey at Berkman will rise at 6405 Berkman Drive in District 4. Planned amenities include community rooms, fitness centers and computer labs. The projects are financed with a mix of city subsidies and housing programs, including roughly $5.6 million for Stassney and $5.5 million for Berkman from Austin, along with 9% Low-Income Housing Tax Credits and a $1 million acquisition loan, according to a press release from the City of Austin.
What residents will find
National CORE’s project materials show that Bailey at Stassney will feature a split of 52 studio apartments and 52 one-bedroom units, while Bailey at Berkman will be made up of 104 studio homes. At each property, 26 apartments are reserved for residents who are exiting homelessness or facing especially high barriers to housing.
On-site supports will be delivered in partnership with the Hope Through Housing Foundation, and National CORE notes that both buildings are intentionally located for transit access and proximity to neighborhood services, per National CORE.
Funding and partners
Private financing partners helped make the numbers work. Project partners credit Red Stone Equity Partners with providing tax equity and hands-on problem-solving that allowed the developments to move forward, according to the Hope Through Housing Foundation.
Project-based vouchers and other subsidy tools will help preserve long-term affordability. Developers Diva Imaging LLC and consultant Structure Development are working alongside National CORE on construction and delivery. The transactions also rely on standard affordable-housing tools, including tax credits, local subsidy programs and short-term acquisition financing, to speed up production.
Why it matters
Austin has been racing to expand permanent supportive housing as rents climb and displacement pressures intensify. City planning materials indicate that the Bailey projects are intended to bolster PSH capacity for residents with high barriers to stable housing.
The city’s Homelessness Prevention Framework and related RHDA documents, from the City of Austin, list both Bailey developments as PSH lease-ups in 2027. Together, they are expected to add roughly 52 permanent supportive housing units to Austin’s pipeline while expanding access to services tied to housing stability.
Trade outlet CoStar also reported the May 28, 2026 groundbreaking. Prospective residents and local service providers can track project timelines and future waitlist information on the National CORE site, and city housing staff say the additions will be a meaningful, if incremental, boost to Austin’s affordable-housing stock.
