City Council Approves Bonds for Northeast Austin Affordable Housing

The Austin City Council on Oct. 31 approved measures to issue $80 million in tax-exempt bonds for the construction and rehabilitation of three affordable housing complexes in Northeast Austin during its Oct. 31 meeting.

The measures are part of an ongoing effort by the city government and private partners to combat gentrification, in which longtime residents are displaced by rising property costs. Among the 10-year goals outlined in the city’s 2017 Strategic Housing Blueprint, one is the addition of 45,000 housing units like the ones approved Oct. 31—affordable to families making 60% or less of the city’s median family income, which is about $91,000 per year.

“If we want to fight the gentrification that’s occurring in this city, it’s important for us to find rare opportunities like this open piece of land and plant permanent affordability,” Council Member Greg Casar said. Casar represents Austin’s 4th District, where two of the newly approved affordable housing complexes will be developed.

Casar said that state and federal tax credit programs such as these bonds bring down developers’ construction costs. This helps guarantee low costs for tenants in the long term, unlike some other apartment redevelopments that lack public funding.

“We’ve seen so often that landlords slap a coat of paint on a building, give it a new name and then jack up the rent,” Casar said. “We’re making the investment not just today, but for 10, 15 or 20 years from now.”

According to The Uprooted Project, a 2018 gentrification study by the University of Texas at Austin, being a person of color and being a renter are among indicators that a low-income individual or family is vulnerable to displacement. Casar said that many of his constituents meet these indicators and are thus being increasingly displaced.

“Because we’re in such an affordable housing crisis, we are going to regret not planting affordability in places like these in the future,” Casar said. “Even though gentrification has not quite hit that area yet, we know it’s on the cusp.”

The council approved a bond of $35 million for LDG Development to build LDG Estates at Norwood, a 228-unit rental development near 916 Norwood Park Blvd. They also approved a bond of $30 million for The NRP Group to build The Bridge at Loyola Lofts, a 204-unit rental development at 6420 Loyola Lane.

The council also approved a $15 million bond for Related Affordable to purchase and improve The Oaks at North Plaza, which will become a 62-unit affordable housing complex. The Oaks at North Plaza is located at 9125 N. Plaza.

During the public hearing regarding Related Affordable’s bond application, tenants association member Lynelle Espinoza spoke on behalf of several residents from properties managed by Related.

Espinoza said that tenants talked about several concerns with Related Affordable’s management and city officials in meetings over the past few weeks. She said that a written agreement was reached in which the management made commitments to the tenants.

“It hasn’t been easy, but we are glad that Related management is finally acting in good faith to address our concerns,” Espinoza said. “All we ask from Related is a safe home, repairs done on time, open communication and respect for those of us who speak different languages.”

Casar said that these meetings show how important work can be done when tenants associations work with both the city and private partners.

“When tenants associations bring their issues to the forefront and work with the city … we can make things better for everyone,” Casar said. “I hope and look forward to this property’s rehabilitation in my district being a really good one for people who are served there.”

Some affordable housing progress has already been made since the blueprint was created.

At the City Council meeting, Mary Apostolou, Housing Authority of the City of Austin resident commissioner, invited council members to the grand opening of Chalmers Court South, the first completed part of a newly redeveloping affordable housing community in East Austin with plans for nearly 400 affordable units once all construction is done.

“The residents of Chalmers Court appreciate your ongoing support of our redevelopment,” said Apostolou, who is also now a resident of Chalmers Court South. “Your support has given us dignity and a place of pride and joy to call home.”