Thank you for considering a donation to Affordable Central Texas, the non-profit sponsor and investment manager of the Austin Housing Conservancy Fund. Your donation will help support the day-to-day operations of Affordable Central Texas. Ensuring that we can continue in our mission to preserve affordable housing for our community’s teachers, first responders, medical professionals and others vital to Austin’s livability and success.
The original report can be found here.
Whether you think Amazon, Microsoft, Facebook, Google, and Airbnb have gotten too much credit or not enough for recent commitments that exceed $2 billion combined for affordable housing and homelessness efforts, mainly in Seattle and San Francisco, their pledges are only the splashiest in what looks like a rising tide of business leadership on the housing affordability crisis.
In Charlotte a “wave of donations” from civic leaders has eclipsed a $50 million goal and “means that more than $250 million in public and private money has been committed since 2018,” the Charlotte Observer reported earlier this month. The Washington Housing Initiative has raised more than $90 million for a loan fund and related community services in the District of Columbia.
The Austin Housing Conservancy has secured commitments from about 25 investors to acquire and preserve the affordability of apartments that are home to more than 1,200 people. The Twin Cities Naturally Occurring Affordable Housing Impact Fund has raised $32.5 million so far, mostly from Minnesota companies and foundations (and Minnesota Housing).
It’s not just financial institutions. A sandwich shop donated land to the Charlotte effort.
Yesterday in Indianapolis — where local leaders recently launched a $15 million fund to preserve affordable housing along transit lines, following the success of similar vehicles in Denver and the Puget Sound and San Francisco Bay areas — Indiana HCDA announced plans to co-invest in workforce housing initiatives with an industrial machine supplier, a medical device manufacturer, a nonprofit health system, and a resort in four different communities in the state.
“By participating in this new program, these organizations further prove how important housing is in attracting and retaining talent,” said Indiana Lieutenant Governor Suzanne Crouch (R).
Affordable housing is a tough business for anyone — it was reported this week that a once-promising Dallas initiative may have stalled — and nobody should expect that the private sector alone can solve a problem as massive as the affordability crisis. But business leaders appear ready to do more, if approached the right way.
Chicago executive and civic leader King Harris, chairman of Illinois HDA, offered this advice from experience in a Brookings Institution essay last year:
“[W]hen you are able to target leaders who are receptive to the conversation, and you present them with information that resonates with their experience and the needs of their workforce, you may find yourself with some new, strong allies … You never know which CEO is going to be your region’s next housing advocate!”
There’s evidence that business leaders are feeling greater pressure to take on what they see as society’s most pressing problems.
It’s up to us to make sure housing is on their list.
Stockton Williams | Executive Director
The original article can be found here.
In 2017, the City of Austin bought 1.3 acres of land at the corner of Doris Drive and Hathaway Drive from AISD. The year prior, the district had placed 10 different properties on the market.
The city ended up buying two of those properties for sale — the Doris Drive land and about eight acres on Tannehill Lane. They used the bond voters approved in 2013.
“We looked for properties [that were close] to services, amenities, transportation and schools,” said Mandy DeMayo, Community Development Administrator at the city’s Neighborhood Housing Community Development Department.
She said the Doris Drive tract is across the street from Burnet Middle School, and the Tannehill Lane land in east Austin is near Norman Elementary School.
According to DeMayo, the project will include single-family homes and duplexes. “We are planning eight units total of affordable housing,” she said. “Four will be rental housing. Affordable to folks at or below 50 percent median family income. Four will be single-family ownership opportunities for families at or below 80 percent median family income.”
Austin’s median family income for a family of four is $95,900.
DeMayo said the goal is to have the homes on Doris Drive be ready for move in by Fall 2020. “It’s a pretty ambitious timeline, but we feel like it’s achievable. We understand the need for affordable housing is obviously huge, and we want to do our part to help meet that need,” she said.
Other projects in the works
The city also owns properties on East 10th Street and Funston Street. DeMayo said an accessory dwelling unit is under construction on E. 10th, and the plan is to build a three-bedroom home on Funston Street.
They also have plans to collect proposals from developers, so three other lots can be developed.
- Tannehill Lane (the land mentioned above, purchased from AISD)
- Tillery/Pecan Grove
- Gardner Road/Levander Loop
DeMayo said projects — both big and small — help make a difference.
“Every unit counts,” she said.
The original article can be found here.
Apple campus, Statesman site redevelopment mentioned as major projects to mind
Austin is once again the top market in the country for real estate investment looking ahead to 2020, according to a national study released Sept. 19 by PricewaterhouseCoopers and Urban Land Institute.
The Texas capital climbed up from No. 6 on the last Emerging Trends in Real Estate study. For 2018 it ranked No. 2 and for 2017 it ranked No. 1.
“Development is booming, and the landscape is studded with impactful projects,” the new report states about the Texas capital.
The Austin projects named in the report, which is based on a survey of more than 1,500 real estate professional across the world, are Apple Inc.’s forthcoming $1 billion campus in Williamson County, the transit-oriented development proposed for the Austin American-Statesman site, the new Dell Medical School and a major expansion of Austin-Bergstrom International Airport.
“Capital is abundantly directed toward Austin — so much so that some locals wonder about the underwriting assumptions of outside investors,” the report states. “Transaction activity in Austin is above what you would expect from a market of its size, and 2019’s early results are above the three-year historical average.”
In 2020, Austin will be a solid “buy” market for industrial, office and multifamily properties, according to the 41st annual study from New York-based accounting firm PwC and the nonprofit Urban Land Institute.
Austin first appeared in the top 10 of the study about a decade ago, along with larger, mostly coastal cities such as New York City, Washington D.C. and San Francisco, said Mitch Roschelle, partner at PwC and co-publisher of the report. Initially, people thought Austin’s appearance was a mistake, he said.
“It’s not an aberration at all,” Roschelle said, after studying Austin for years. “[Austin] has almost become a force of nature.”
Austin’s explosive population and employment growth, as well as the continuing diversification of the economy, keep the capital city near the top of the list, Roschelle said.
“The population of Austin is growing at three times the population growth rate of the U.S.,” he said. The MSA is growing by about 45,000 people a year, Roschelle added, citing Census Bureau data. The latest federal numbers, released in April, found that the Austin metro population grew by 53,086 from 2017 to 2018, or about 145 a day.
There’s so much momentum and potential for economic expansion in Austin that if the overall U.S. economy were to slow, the city would get its first opportunity to prove its resilience, Roschelle said. Historically Austin has fared better than many other cities during recessions, although now the Texas capital is more connected to the global economy than ever before.
On the diversification of Austin’s economy, the city also scores highly. It is adding million-dollar businesses faster than any other major metro in the country, according to a recent report from LendingTree. From 2014 to 2016, the number of businesses in the Austin area with revenue of at least $1 million climbed 15.1%.
Paulette Gibbins, executive director of ULI in Austin, agreed that the economy is diversifying. Army Futures Command’s entrance into the city last year “represents quite a diversification of job opportunities within Austin,” she said.
“They come here, and then they also bring in other companies interested in doing work with them,” Gibbins said. “On top of that, Austin has really grown in the bio-tech sector (with the innovation district) and medical school.”
Persistent challenges in Austin are traffic and rising housing costs, according to the report.
As Austin grows vertically — real estate insiders joke the tower crane is the unofficial city bird — it is also growing horizontally, Roschelle said.
“Suburbs start getting created where there weren’t suburbs before,” he said. “People start commuting from longer distances where the land and homes become more affordable. That’s what tends to happen.”
That’s already happening in the Austin area as median home prices in the city have reached record highs, according to recent data from the Austin Board of Realtors. As a result, thousands of new homes are being built in nearby cities like Pflugerville, Buda, Kyle and Leander.
10 markets to watch in 2020 from Emerging Trends in Real Estate report
2. Raleigh-Durham, N.C.
6. Dallas/Fort Worth
9. Los Angeles
The original article can be found here.
AUSTIN, Texas — Austin and the Housing Conservancy have been awarded a $100,000 Outstanding Achievement Metropolitan City Community WINS Grant to support the preservation of affordable housing through the Austin Housing Conservancy Fund managed by Affordable Central Texas (ACT).
According to the City, the Austin Housing Conservancy Fund is a “significant private equity financing innovation” that is designed to preserve workforce housing apartment buildings by saving them from being gentrified and protecting existing tenants from being displaced. It is the first large-scale use of such an economic model.
“We must preserve multifamily rental housing for middle-class families, or we will lose the diversity of people and cultures and the artistic and creative talent that make our city special,” Mayor Steve Adler said. “The loss of affordable housing supply in Austin that has come with our growth hits our teachers, medical workers, first responders, artists, musicians and other such workers hardest.”
The Housing Conservancy is a private real estate partnership with a “mission-driven, charitable non-profit” as its managing partner, according to the City. The City said the conservancy fights market trends by competing in the marketplace to buy mid-age multi-family apartment buildings to preserve them at current rents instead of them being purchased, upgraded and rented at market-rate.
“Preservation of workforce affordable housing units not only helps residents but also stabilizes neighborhoods. When the Austin Housing Conservancy Fund acquires a property, no residents will be displaced,” said David Steinwedell, president and CEO of ACT. “In fact, the Fund will renovate and revitalize properties to ensure that the moderate-income families and individuals can remain for long periods of time, providing stability for area schools and local businesses while improving health and educational outcomes.”
ACT is a 501(c)(3) and is the sponsor and investment manager of the Austin Housing Conservancy Fund. The fund was launched in 2018 with the acquisition of three properties totaling 792 units and serving over 1,200 residents.
The City said the newly-awarded money will allow for the continued growth of the organization and fund to move toward their 10-year goal of preserving over 10,000 units of rental housing for 15,000 residents in greater Austin.
Affordable Central Texas currently has three affordable housing properties that house 1,200 people. They hope to use this grant money to help them buy three more properties.
The video footage of the check presentation and original the original article can be found here.
AUSTIN (KXAN) — The Austin Housing Conservancy fund became $150,000 richer Tuesday morning.
But they had a surprise for them — another check worth $50,000 for ACT. Each supports the work of the conservancy fund.
ACT manages the fund. The group sees it as one solution to address Austin’s ongoing affordability crisis. They believe this first use of a large scale economic model helps broaden economic opportunity and resources while enabling Austinites to thrive, per their press release.
Their goal is to preserve workforce housing apartment buildings. According to the release, the fund aims to save them from being gentrified and protect existing tenants so they won’t be displaced.
The original article can be found here.
AUSTIN, TX — Officials have scheduled a ceremony on Tuesday during which $100,000 will be donated to promote affordable housing.
The ceremony is scheduled on Tuesday, Sept. 3 at 9:30 a.m. at the Austin City Hall media room. During a press conference, Wells Fargo and the U.S. Conference of Mayors will present a $100,000 check to Affordable Central Texas, Inc. to support the work of the Austin Housing Conservancy Fund, officials wrote in an email.
Scheduled to appear at the event are Mayor Steve Adler; David O’Neil, regional bank president, Wells Fargo; and David Steinwedell, Affordable Central Texas.