Housing Accelerator Loan Fund Invests $3.6 Million in 164 New Affordable Homes

November 25, 2024

AUSTIN, Texas – Austin Community Foundation announced today its Housing Accelerator Loan Fund had invested $3.6 million towards two affordable housing developments in Southeast Austin: Willow Crossing, a 38-unit homeownership community, and Persimmon Point, a 126-unit multi-family development.

The Housing Accelerator Loan Fund, managed by Austin Community Foundation, is a $17.6 million fund aimed at accelerating the pace of affordable housing development in Central Texas. The Fund offers low-cost, concessionary financing to affordable housing developers for short-term pre-development, land acquisition, and bridge financing.

The new investments include:

Willows Crossing / Industry ATX – A $600,000 loan for pre-development at a 3% rate with a 1-year term. The development, located in the Dove Springs neighborhood, will provide a total of 38 units for sale for households earning up to 80% of the area median income (AMI), with a focus on preserving the residency of long-time Austinites facing the risk of displacement. Owned by the Austin Housing Finance Corporation and developed in collaboration with Industry ATX, this project leverages the Community Land Trust model to offer an affordable housing solution to a community in need of more attainable housing options.

“Our team first learned of the Housing Accelerator Loan Fund while participating in the Austin Small Developer Training program, and we knew it was an opportunity we wanted to pursue,” said Megan Etz, principal at Industry ATX.

Persimmon Point / Austin Habitat for Humanity – A $3 million bridge loan at a 3% rate with a 2-year term. Located in Southeast Austin, Persimmon Point is Austin Habitat’s largest home ownership project to date, building 126 flats and townhomes priced affordably from $151,000 to $225,000. This multi-family subdivision will serve households earning up to 80% AMI, and prospective homeowners are expected to volunteer 200 hours of their time working on other Habitat homes.

“We are sincerely grateful for the low-interest loan Austin Community Foundation has provided to Austin Habitat for Humanity,” said Donald McPhee, chief financial officer, Austin Habitat for Humanity. “ACF’s commitment to our mission truly energizes our efforts, and we are thankful for their partnership and trust in our work. With this support, we can drive impactful change.”

The Housing Accelerator Loan Fund has provided six loans to date, totaling over $9.6 million in support of approximately 1,000 new affordable housing units in the Austin area. Another three projects are in the pipeline and are expected to generate more than 200 additional units.

Key partners in the Housing Accelerator Loan Fund include the City of Austin, Hazoor Partners, JPMorganChase, NI, Shield-Ayres Family Foundation, St. David’s Foundation, Tito’s Handmade Vodka, Austin Ventures Charitable Fund, the Jamie Goode Charitable Fund, and other donor-advised fundholders at ACF.

Austin Community Foundation is seeking $8 million in additional philanthropic support. This amount would allow the Fund to reach operational sustainability and continue to meet the high demand for fast, flexible capital to accelerate affordable housing in Central Texas.