North Austin News

The City of Austin Housing Department has announced that six affordable housing projects have received support from the Austin City Council to apply for 9% low-income housing tax credits from the State of Texas. This marks the initial step developers must take before formally applying to the Texas Department of Housing and Community Affairs (TDHCA) for these competitive credits.

“These resolutions of support push the proposed communities one-step closer to in their competitive bids for the 9 percent tax credits,” said Mandy DeMayo, Interim Director for the Housing Department. “Tax credit developments help ease the shortage of affordable rental housing, attract private investment in affordable housing, and create jobs with an economic multiplier effect that lasts beyond the end of construction.”

The competitive process typically begins in January, with awards made by TDHCA in July. Projects are usually completed within two years. Developers must obtain a supportive resolution from the City Council as part of their application for eligibility.

Projects awarded these credits must maintain affordability for at least 30 years post-completion, with many opting for a 45-year commitment. After this period, control reverts to the owner.

“The 9 percent tax credits play a pivotal role in the development of affordable housing and ensure these communities stay affordable for several decades. The added benefit is that they help create jobs which has a long-term economic boost,” explained James May, Housing and Community Development Officer.

In December 2024, city staff received requests from eleven LIHTC developers. Five withdrew after deciding not to proceed with full applications, leaving six developments on the agenda:

- Pathways at Santa Rita Courts West: Located in District 3 at or near 2210 E. 2nd St., this project involves rehabilitating an existing community to create 96 affordable units.

- Waverly North: Situated in District 9 at or near 3710 Cedar St., plans include developing 76 affordable units.

- Crossroads Redevelopment: Located in District 7 at or near 8801 McCann Dr., it aims to create 130 supportive housing units.

- Eberhart Place: In District 2 at or near 808 Eberhart Ln., this project focuses on senior living with plans to rehabilitate 38 units.

- St. George’s Court: Found in District 4 at or near 1443 Coronado Hills, it also targets senior living with plans to rehabilitate 60 units.

- Highland Commons: Located in District 4 at or near 618 E. Highland Mall Blvd., plans include creating 96 affordable units.

Further details can be found in RCA and backup materials.

The Low-Income Housing Tax Credit (LIHTC) program was established by the Tax Reform Act of 1986 and is administered by the IRS. It provides tax incentives for building or renovating affordable rental housing. The TDHCA allows developers to offset federal tax liability through these credits.

Developers applying for these credits must meet criteria set by both city and state authorities. Awards are based on scores received within their region; Austin falls under Region 7.

"Historically, Region 7 has only received two direct awards per year," noted May. "With increased allocation, we are excited about a potential third award as well as two very competitive developments in the At-Risk Set Aside category this year."

The City of Austin Housing Department aims to provide equitable housing solutions and enhance quality of life across Austin.

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