AUSTIN, TEXAS — Austin Community Foundation announced today a $250,000 investment in the Texas Housing Impact Fund—a loan fund of the Texas State Affordable Housing Corporation (TSAHC)—to help close a funding gap for the construction of an affordable, accessible apartment complex known as Accessible Housing Austin! (AHA!) at Briarcliff.
The investment allowed TSAHC to increase the amount of financing for AHA! at Briarcliff from $695,000 to $995,000, with a reduced interest rate of 2.5 percent during the two-year construction period.
“We applaud Austin Community Foundation’s investment in our Texas Housing Impact Fund to support the AHA! at Briarcliff development,” said David Long, President, Texas State Affordable Housing Corporation. “Their commitment allows us to amplify our impact in creating affordable and accessible housing opportunities for low-income households in an area of Austin that is close to transit, jobs, amenities, and services.”
AHA! at Briarcliff is an apartment complex in northeast Austin that will consist of 27 units—one half accessible and the other half adaptable for persons with disabilities. The complex will serve households with incomes below 50 percent of the median family income and house between 35 and 60 people. Construction is expected to begin in early 2019.
To complete the project, AHA!, a local nonprofit housing developer, has secured more than $3.7 million in additional financing from the City of Austin and the Texas Department of Housing and Community Affairs, as well as an Affordable Housing Program (AHP) grant from Frost Bank in partnership with the Federal Home Loan Bank of Dallas. Additionally, the project will be exempt from local property taxes through a ground lease and long-term partnership with the Housing Authority of the City of Austin.
Austin Community Foundation’s investment is made through FundATX, the organization’s impact investing program. As a complement to its traditional grant-making strategy, the foundation awards below-market-rate loans to nonprofit organizations and community development financial intermediaries working to close the opportunity gap in Central Texas. This strategy allows the foundation to invest in local solutions while generating a financial return on philanthropic dollars.
“We know grant making can only go so far and we’re committed to maximizing the Austin Community Foundation’s resources through new and innovative solutions, such as impact investing, to help close the opportunity gap in Central Texas,” Mike Nellis, chief executive officer, Austin Community Foundation, said. “The foundation is excited to partner with Texas State Affordable Housing Corporation and other investors to bring this project to fruition.”