Austin City Council on Thursday signed off on an agreement that will put Foundation Communities staff and programs directly inside Arbor Terrace, the city-owned supportive housing complex that serves about 120 residents. The deal funds an initial 13-month contract and builds on the city's effort to keep people housed by pairing apartments with on-site case management and life-skills programming. Council approved the item as part of its meeting that day, with the arrangement intended to help residents remain stably housed and improve both financial and health outcomes.
#ATXCouncil approves agreement with @foundcom to provide supportive housing services for approximately 120 individuals at Arbor Terrace. This will help individuals remain successfully housed, strengthen financial security + more. 🏡 https://x.com/i/status/2080360358208753948
— City of Austin (@austintexasgov) July 23, 2026
Deal Details And Funding
The city authorized Austin Homeless Strategies and Operations to negotiate and execute an initial 13-month agreement with Foundation Communities beginning September 1, 2026, in an amount not to exceed $1,000,000, with up to two 12-month extension options each in an amount not to exceed $1,000,000, for a total agreement amount not to exceed $3,000,000, according to the City of Austin. The city also announced the approval on X; see the City of Austin. Initial funding for the first year comes from the Neighborhood Housing–Housing Trust Fund and the Austin Homeless Strategies and Operations social services budget.
Services On Site
Foundation Communities, which operates Arbor Terrace under a long-term ground lease with the city, notes on its community page that the South Austin property provides case management, adult education, financial-literacy training, health and wellness programming, and free healthy-food deliveries through Keep Austin Fed. The organization describes Arbor Terrace as 120 furnished efficiency apartments with on-site supports and a secure entrance; more about resident programming is available from Foundation Communities.
How It Fits Austin's Homeless Strategy
City documents state that these site-based supports are intended to address barriers that can place housing at risk, promote long-term self-sufficiency, and reduce the likelihood that residents will return to homelessness. The recommendation notes that the services protect the city's investment in supportive housing and advance Austin's goal of making homelessness rare, brief, and nonrecurring, according to the City of Austin.
What Comes Next
If the contract is finalized it will begin on September 1, 2026, allowing Foundation Communities and city staff to phase in staffing and programming at Arbor Terrace. Foundation Communities maintains separate supportive-housing waitlists and contact information for people seeking units; applicants and residents can find that information on the nonprofit's waitlist page. Because funding for later years depends on future budget allocations, city officials say ongoing support for the program will be assessed during upcoming budget cycles.
