Impact Investment Continues to Fuel Affordable Housing in Austin
In July 2022, Austin Community Foundation made a significant commitment to advancing housing affordability in Central Texas. Taking the form of a low-interest rate loan, this $3 million impact investment in Austin Habitat for Humanity helped accelerate the construction of 156 single-family homes at three locations. Since then, Austin Habitat has completed the construction of 30 affordable homes in Northeast Austin aimed at serving families and employees of Austin Independent School District.
Completed homes at Austin Habitat’s Loyola development.
At a recent home dedication in the Loyola Neighborhood, Michele Anderson, CEO of Austin Habitat, shared how the organization plans to double production next year. “We want to match the growth in Austin with matching affordable home ownerships for the people that are here.”
Austin Habitat’s ambition aligns with ACF’s strategic focus, making the organization a valuable partner. By providing low-interest rate loans to developers like Austin Habitat, ACF ensures these organizations can continue building in Austin’s competitive market. The sources of funding for the loan included a combination of grants and impact investments from Austin Community Foundation, Tito’s Handmade Vodka, St. David’s Foundation, Bill Wood Foundation, Shield-Ayres Foundation, the Aragona family, and a group of donor-advised fundholders at the community foundation.
The remaining 126 homes to be built with ACF’s investment will be at Persimmon Point—Austin Habitat’s largest affordable homeownership development in nearly 40 years of operation. Upon completion in 2027, this Southeast Austin neighborhood will house families making less than 80% of the area median income (approximately $78,250 for a two-person household). Austin Habitat will further help these families to invest in their future by offering financial education and one-on-one counseling.
Marissa Barrera saws through a board surrounded by her new neighbors to celebrate the completion of their homes.
Habitat families know they’re not only gaining a house, but a quality home and a stable community. Marissa Barrera, a single mother in the Loyola community, shared, “These homes have such good energy… that me and my boys feel every single day. We really hope to continue to pay it forward.” Barrera is thankful to everyone involved in making her dream of homeownership a reality. “The opportunity wouldn’t be there without Habitat… and I’m sure there’s hundreds of people behind it that I’ve never met, that poured in their energy and money. So, thank you.”
Cross-sector partnerships—between public and private funding sources, for example—are one of the largest factors impacting a project’s success, and there’s never been a more important time to nurture them in the pursuit of housing affordability. “We have this confluence right now of partnership, goodwill, hard work, and resiliency,” Billy Whipple, Chief Impact Officer of Austin Habitat, noted, underscoring the power currently building in our community to change the trajectory of the housing crisis.
If you’re interested in joining the collaborative effort to advance housing affordability in Central Texas, discover ACF’s newest initiative, the Housing Accelerator, which fills a crucial funding gap for affordable housing developers. There, you can learn more about the program, find ways to support it, or apply for financing.