June 23, 2020
The Texas State Affordable Housing Corporation (TSAHC) has announced a new pilot program that allows nonprofit affordable housing organizations located in Travis, Williamson, Bastrop, Hays, and Caldwell counties to seek financing for early stages of proposed affordable housing developments.
This predevelopment fund, made possible by financial support from Austin Community Foundation’s FundATX impact investment program, aims to provide assistance to small-scale or neighborhood-oriented community organizations. These entities commonly lack the resources required to fund predevelopment activities on housing projects that meet critical needs in their service area.
TSAHC recently approved the first award under the pilot program, a $100,000 predevelopment loan to Chestnut Neighborhood Revitalization Corporation to support Chicon Phase II, a 49-unit mixed use, mixed income condominium development in East Austin.
“We know that addressing the affordable housing crisis in our community will take collaboration among diverse sectors and innovative solutions, which is why Austin Community Foundation is excited to partner with TSAHC and support this loan program for community-based organizations in the Central Texas area,” said Mike Nellis, CEO at the Austin Community Foundation.
The launch of the predevelopment fund coincides with a City of Austin initiative that also bolsters neighborhood-oriented community organizations. Specifically, the Austin Housing Finance Corporation recommended providing $536,188 in Community Development Corporation Capacity Building Grants to assist organizations in creating community-based approaches to mitigate displacement and increase affordable housing in Austin.
“These grants will help small organizations expand their capacity to lead the effort to build a broad range of affordable housing options for the diverse housing needs that exist. This is part of our long-term displacement prevention strategy and we are excited to support these efforts,” said Nefertitti Jackmon, a program manager for the City’s Neighborhood Housing and Community Development Department.
TSAHC’s predevelopment loans are available as a part of the Texas Housing Impact Fund, which offers financing to affordable multifamily or single family housing developments in order to create opportunities for a higher quality of life for low- and moderate-income Texans.
“We are grateful to the Austin Community Foundation for supporting TSAHC in our endeavor to assist community-based organizations in providing critically needed housing in their service areas,” said David Long, President of the Texas State Affordable Housing Corporation. “This fund was created to launch affordable housing developments across Central Texas that otherwise may not be built, as small scale organizations often lack the resources necessary to pay for the early stage costs of a project.”
The loans provided through this program range from $25,000 to $100,000, based on the demonstrated need of the applicants. For more information on TSAHC’s Predevelopment Loan program and to apply for an award, click here.