In the heart of Central Austin, a transformative housing development is changing lives and addressing one of our community’s most pressing challenges. Cady Lofts, which celebrated its grand opening on April 23, 2025, now provides 100 units of permanent supportive housing for individuals exiting homelessness, many of whom have experienced chronic homelessness and face physical and mental health challenges.
Addressing a critical need
The need for permanent supportive housing in Austin has never been more urgent. Despite being one of the nation’s most prosperous cities, Austin continues to struggle with a housing affordability crisis that disproportionately impacts our most vulnerable neighbors. According to recent data from Ending Community Homelessness Coalition, or ECHO, approximately 3,200 individuals experience homelessness on any given night in Austin, with hundreds living without shelter.
Studies have shown that permanent supportive housing—which combines affordable housing with wraparound support services—is an effective solution for ending chronic homelessness. Permanent supportive housing developments are an integral part of the City of Austin’s overall strategy to end chronic homelessness by offering long-term solutions beyond emergency shelters and rapid rehousing.
Austin Community Foundation’s role
Austin Community Foundation has been at the forefront of addressing this critical need through its Housing Accelerator Loan Fund, which makes strategic investments in affordable housing solutions across Central Texas.
In 2022, Austin Community Foundation invested $2.87 million in Cady Lofts. This strategic investment, in the form of a low-interest rate loan, helped fill critical financing gaps in the project’s early stages, allowing the developer to secure additional funding and keep the project moving forward.
“Early-stage financing is often the most challenging piece of the puzzle for supportive housing developments,” said Sally Gaskin, president of SGI Ventures, and developer of Cady Lofts. “Austin Community Foundation’s Housing Accelerator Loan Fund provided crucial capital at a critical moment, allowing us to move forward when other financing wasn’t yet available. Their investment was instrumental in bringing this project to life.”
Realizing the potential outcomes of this project, ACF made an additional $2 million investment in 2023 to support construction, further reinforcing its commitment to increase housing affordability and access for all who call Central Texas home.
A life-changing impact
For residents like Sharon “Rose” Simmons, Cady Lofts represents more than just housing—it’s a foundation for rebuilding a life. Rose had learned to live out of a backpack as she experienced homelessness for a decade. Now she’s proud to be living at Cady Lofts and thankful for everyone who was involved in the project. “I’d never been so happy in my life,” Rose said at the grand opening celebration.
The four-story building provides studio apartments for individuals who qualify as chronically homeless and earn less than 30% of the area median income. Beyond safe, stable housing, residents have access to onsite case management, health screenings, job training, and other essential supports. Additional amenities include a library, computer center, community kitchen, outdoor courtyard, and access to public transit.
Community-wide collaboration
Total development costs for Cady Lofts were approximately $25 million, and financed through a mix of sources, including the City of Austin, Austin Community Foundation, Cadence Bank, Federal Home Loan Bank Dallas, the Texas State Affordable Housing Corporation, and state and federal Low-Income Housing Tax Credits.
“Cady Lofts exemplifies the power of partnership,” said Mike Nellis, CEO of Austin Community Foundation. “By pooling resources and expertise across sectors, we’ve helped create housing solutions that no single entity could accomplish alone—this collaborative approach is essential to addressing Austin’s housing affordability crisis.”
As Austin continues to grow, the need for innovative housing solutions will only increase. Austin Community Foundation remains committed to making strategic investments that expand housing opportunities for all, regardless of income level or background.
Learn more about the Housing Accelerator Loan Fund and how you can get involved in this unique effort to address housing affordability in Central Texas.
