The City of Austin Housing Department announces funding for two developments totaling 160 additional permanent supportive housing units in District 3, as approved by the Austin Housing Finance Corporation (AHFC) Board on August 31. AHFC, a nonprofit affiliate of the City, is authorized to enter into a loan agreement to provide $5,500,000 in funding for a rental development known as The Roz through the 2022 General Obligation Bonds, as well as $6,795,000 in funding for a rental development known as The Sasha. Leasing opportunities for The Roz and The Sasha are expected to open in Fall 2025.
These two developments were the only applications in 2023 to receive 9% Low-Income Housing Tax Credits (LIHTC) in the city, in addition to the first distributions of the 2022 City of Austin GO Bonds, approved by Austin voters last year. LIHTC allows housing developers to sell federal tax credits to eligible investors, who provide much needed equity for building low-income rental housing developments. LIHTC is a federal program enabled by the Internal Revenue System (IRS) and allocated to each state. In Texas, the Texas Department of Housing and Community Affairs (TDHCA) administers tax credits.
“These two rental developments – The Roz and The Sasha – are milestones for permanent supportive housing serving low-income, vulnerable populations in Austin,” explains Rosie Truelove, Director of the Housing Department. “We are proud to leverage tools like LIHTC (Low-Income Housing Tax Credits) and bonds to benefit our community’s need for more affordable housing.”
Dating back to 1991, the AHFC was one of the first Housing Finance Corporations to participate in a LIHTC development in Texas, if not in the United States. With nearly 30 years of institutional experience in developing and managing affordable housing and with a growing team of internal staff and external consultants, AHFC is poised to significantly increase the number of assets under its general control over the coming years. In AHFC’s multifamily developments, it exercises control either as sole owner, as the general partner or as managing member of the partnership/company.
The Roz will be a multi-family rental development located at 3432 Parker Lane with 100 efficiency units targeted for supportive housing. All units will be affordable for households earning at or below 60% median family income. All 100 units will have project-based vouchers ensuring that residents are able to live on-site regardless of their ability to pay. The Roz is adjacent to City View at the Park Apartments, a 70-unit LIHTC development for residents aged 55+ and culminates a long-awaited phase two development on the City View property. AHFC purchased City View last year.
The $5.5 million Rental Housing Development Assistance (RHDA) loan for The Roz will go toward pre-development and construction costs. The Rental Housing Development Assistance (RHDA) Program works to expand the community’s supply of affordable rental housing for low-income households and to increase the availability of permanent supportive housing for persons experiencing homelessness or low-income households with special needs.
The Roz rental development will include a commitment of 60 local housing vouchers from the City of Austin. Developers have also received 25 housing choice vouchers from the Housing Authority of the City of Austin (HACA) and 15 Veterans Affairs Supportive Housing (VASH) vouchers to assist the remaining 40 units and support the long-term tenure of the low-income residents. The $5.5 million RHDA loan, in conjunction with the housing choice vouchers, will eliminate the need for privately sourced debt and substantially reduce long-term cost liabilities.
Developers and Partners
The Sasha will be a multi-family rental development located in southeast Austin off Riverside Dr with 60 units comprised of one-, two-, and three-bedroom units — 30 units of permanent supportive housing and 30 units of transitional supportive housing. The Sasha received $2,979,517 from the 2022 General Obligation Bonds and $3,815,483 from Project Connect funding. The Sasha is located within 1/2 mile of the Riverside Drive Mobility & Activity Corridor and Riverside Station Activity Center and within 1/4 mile of high-frequency transit service in close walking proximity to multiple bus stops.
The Sasha will provide supportive housing to the SAFE Alliance (SAFE) Campus in Southeast Austin. SAFE works to address and end multigenerational cycles of violence and abuse, including sexual assault, sexual harassment, sex trafficking, and family violence. This development will support individuals and small families transitioning out of homelessness, persons at risk of homelessness, persons who are fleeing or homeless as a result of domestic violence, sexual assault, or trafficking, or individuals who are aging out of the foster care system with transitional and permanent supportive housing.
Developers and Partners
About the City of Austin Housing Department
The City of Austin Housing Department provides equitable and comprehensive housing, community development, and displacement prevention to enhance the quality of life of all Austinites. To access affordable housing and community resources, visit www.austintexas.gov/housing.
About the Austin Housing Finance Corporation
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