AUSTIN, Texas – Austin Community Foundation announced today a $1 million impact investment in the form of a low-interest rate loan to Austin Habitat for Humanity’s East Austin affordable housing development. The 11 row homes currently under construction in the Mueller neighborhood will serve individuals and families earning less than 80% median family income, or $75,500 (and below) for a family of four.
The $1 million low-interest rate loan will support construction costs and help advance the project. Austin Community Foundation contributed $500,000 from FundATX, the organization’s impact investment program, and an additional $500,000 from the National Instruments Fund, a corporate advised fund held at ACF.
The housing development is estimated to be completed by early 2021. A majority of the 11 townhomes are under contract with families anxiously awaiting a move in date.
“Austin Habitat for Humanity is excited to work with Austin Community Foundation to address central Texas’ affordable housing challenges,” Phyllis Snodgrass, CEO, Austin Habitat for Humanity, said. “With this loan, Austin Community Foundation, through the National Instruments Fund and Fund ATX, has provided much needed capital to fund the construction of these beautifully designed townhomes in the popular Mueller subdivision.”
“NI is committed to closing opportunity gaps created by income inequality. Affordable housing is a path to both opportunity and prosperity and enables people who work in Austin to continue living here,” Tabitha Upshaw, head of corporate impact, NI, said. “This is NI’s first contribution to an impact investment and Austin Community Foundation and Habitat for Humanity are the ideal partners for this project.”
“Despite the uncertainty of today’s economic climate, Austin Community Foundation remains committed to mobilizing resources to address the region’s affordable housing crisis,” Mike Nellis, chief executive officer, Austin Community Foundation, said. “We’re excited to collaborate with NI and Austin Habitat for Humanity on an innovative project that provides hard-working families access to affordable housing with all the amenities that Mueller has to offer.”
Austin Community Foundation’s investment is made through FundATX, the organization’s impact investing program that supports projects intended to create a positive social outcome along with a financial return. This strategy allows the foundation to invest in solutions to local issues while generating a financial return on philanthropic dollars that can be recycled to consistently fund new projects. Learn more about FundATX at fundatx.org.